Pre-approvals to fail mid-deal as lenders rewrite borrowing rules

While most investors have been rattled by the tax overhaul, the biggest risk right now isn't the budget itself, but how lenders are reacting to it, with pre-approvals increasingly unreliable and buyers at risk of being caught mid-deal. On The Smart Property Investment Show, Phil Tarrant speaks with Eva Loisance, principal at Finni Mortgages, about the post-budget lending shake-up and what it means for investors trying to secure finance in an increasingly unpredictable environment. Loisance explains that pre-approvals are no longer a safe assumption, with some lenders already stripping out negative gearing from servicing models while others hold the line pending clearer legislation. She warns the real impact is already hitting borrowing power, with modelling showing some dual-income households could lose close to 30 per cent in lending capacity if servicing rules fully exclude negative gearing benefits. As uncertainty flows through the system, lenders are tightening conditions, reassessing risk, and quietly reshaping what investors can actually borrow – well before any law is finalised. The episode also explores how investors may pivot, including a shift toward new-build stock that retains tax treatment advantages, despite higher costs limiting feasibility for many. Loisance flags potential flow-on effects into the rental market, with investors forced to chase yield more aggressively as tax efficiency is stripped back and holding costs rise. If you like this episode, show your support by rating us or leaving a review on Apple Podcasts and by following Smart Property Investment on social media: Facebook, X (formerly Twitter) and LinkedIn. If you would like to get in touch with our team, email [email protected] for more insights, or hear your voice on the show by recording a question below.