ING has updated its investor lending policy ahead of the government's proposed 2027 tax changes
ING Bank Australia has updated its negative gearing serviceability assessment for investor home loan applications. The change takes effect immediately.
It follows the federal government’s 2026–27 Budget announcement on 12 May 2026. The government has proposed restricting negative gearing to new residential builds from 1 July 2027.
The measure has not yet been legislated. ING joins a growing list of lenders that have moved ahead of legislation to update their investor serviceability settings.
What the negative gearing serviceability changes mean
The 12 May 2026 budget date is the key cut-off under ING’s revised policy. How a property is treated for serviceability depends on two factors:
- when it was purchased
- whether it qualifies as a new build
Here is how each scenario is assessed:
- properties purchased on or before 12 May 2026: negative gearing can be factored into serviceability as usual
- established properties purchased after 12 May 2026: interest expense deductions are capped at rental income for serviceability
- new builds: full negative gearing treatment is retained, regardless of purchase date
Properties must meet the new build definition in the Federal Budget Tax Explainer to qualify for the retained treatment.
The approach aligns with other major lenders. See Mortgage Professional Australia’s May 2026 coverage of how major lenders are adjusting negative gearing serviceability.
How ING’s negative gearing policy applies to in-flight applications
ING has set out specific treatment for applications already in progress. The table below summarises each scenario:
| Application scenario | Credit assessment treatment |
|---|---|
| Conversion of a pre-approved loan | Negative gearing considered for serviceability where property is eligible under proposed government rules |
| Conditional or unconditional approvals resubmitted for minor administrative changes on or before 12 July 2026 | Will not be reassessed retrospectively — approval stands as assessed |
| Conditional or unconditional approvals resubmitted for minor administrative changes after 12 July 2026 | Negative gearing considered for serviceability where property is eligible under proposed government rules |
| Approvals resubmitted for material changes (e.g. loan amount, repayment type, security) | Negative gearing considered for serviceability where property is eligible under proposed government rules |
| Multiple property scenarios — mix of eligible and ineligible properties | Where total interest expense exceeds total rental income (after shading), benefit capped at rental income for serviceability |
One cut-off date determines whether an approval is protected or reassessed under the new rules.
- Resubmissions for minor administrative changes lodged on or before 12 July 2026 will not be reassessed
- The same resubmissions lodged after 12 July 2026 will be assessed under the updated policy
- Material changes — loan amount, repayment type, or security — trigger reassessment regardless of timing
Multiple investment properties and the portfolio cap
Clients with mixed portfolios face an added layer of complexity. ING will assess the portfolio on a pooled basis where some properties are eligible and some are not.
If total interest expense exceeds total rental income after shading, the benefit is capped at rental income across the portfolio.
Brokers can find further guidance in MPA’s analysis of what the federal budget changes mean for SMSF investor lending.
ING serviceability calculator update pending
ING confirmed its online serviceability calculator is being updated. Brokers should expect a further update from ING once the new tool is live.
In the meantime, deal complexity has increased across the board. MPA has reported on the broker workload pressures created by the policy rollout as lenders continue to refine their approaches.
Brokers are advised to:
- check the status of every in-flight application before resubmission
- confirm whether each property qualifies as a new build under the government’s definition
- review the Australian Taxation Office guidance on the proposed negative gearing reforms
The negative gearing reforms remain subject to legislative progress. Brokers who stay across lender policy updates will be best placed to guide investor clients through the transition.
For the latest news on lender policy changes and the Australian mortgage market, visit MPA’s mortgage industry market updates section
