More Borrowing Power For Your Investor Clients, Effective 17 August
If you’ve got clients thinking about an investment property, this one’s worth knowing.
Westpac and St.George have increased how much rental income counts towards serviceability on eligible investment properties, from 90% up to 95%. In practical terms, less of that rental income gets “shaded” out of the servicing calculation, which means eligible investors can borrow more than they could last month, without their circumstances changing at all.
What’s Changed
- Rental income recognition on eligible residential investment properties has increased from 90% to 95%
- Effective from 17 August 2026
- Applies to eligible properties under Westpac and St.George’s current lending criteria
Why It Matters For Your Clients
For investors sitting right on the edge of their borrowing capacity, this kind of shift can be the difference between missing out on a property and being ready to move on it. It’s also a good moment to revisit serviceability for any investor clients you’ve referred to us previously who didn’t quite get there last time, the numbers may look different now.
What to Do with This
If you’ve got a client weighing up an investment purchase, or one who’s been told “not quite” on borrowing capacity in the past few months, send them our way. We’ll run the numbers against the current policy and let them know exactly where they stand, no guesswork, no pressure.
Got a client in mind? Get in touch and we’ll take it from there.