A non-major bank has confirmed that its serviceability calculators have been updated to remove negative gearing tax benefits for customers who operate their investment property at a loss.
A Bankwest spokesperson confirmed yesterday that in line with regulatory guidance its serviceability calculators have been updated to remove negative gearing benefits, effective Friday 10 February 2017.
“For customers who operate their investment property at a loss, where the income of the investment property does not exceed the costs, the related tax benefit will no longer be included in Bankwest’s calculation for serviceability of the loan.”
However, given Bankwest’s lead on changes to property investor refinancing last week, and CBA’s decision to follow suit days after, the market will closely watch any announcements over the next week.
Source The Advisor