Bankwest is set to rock the $1 trillion mortgage market and more than 1.5 million property investors by axing negative gearing benefits that drive lucrative residential property investment, particularly in Melbourne and Sydney.
The bank – owned by Commonwealth Bank of Australia, the nation’s largest mortgage provider – will announce on Monday that generous tax breaks will not be allowed for calculating loan eligibility for new – and some existing – borrowers. Without negative gearing, the amount of loan a borrower can get will be lower.
Oh dear! Via the AFR:
