world-economy

NAB Tightens Lending Standards as Australia Eliminates Investor Tax Break

National Australia Bank has strengthened mortgage underwriting requirements following the Australian government's decision to eliminate a tax deduction that allowed property investors to claim mortgage interest expenses. The policy shift aims to address generational inequality concerns and narrow the country's budget deficit. Wealth managers caution that the regulatory change could prompt investors to reassess their portfolio structures. Capital may redirect toward income-generating assets perceived as lower risk. The lending tightening reflects broader market pressures affecting borrowing costs, as property-related expenses including taxes and insurance continue rising across the sector. Financial institutions are adjusting approval criteria as the tax environment for real estate investors becomes less favorable.