Under the new guidelines, banks and other lending institutions will be required to ensure that no more than 20% of their new home loans have a DTI ratio above six. This move is designed to prevent a risky build-up in household debt and promote financial stability within the housing sector.
For first-time homebuyers, these caps may influence borrowing capacity, particularly for those seeking larger loans relative to their income. It's essential for prospective buyers to assess their financial situations and consider how these changes might affect their ability to secure financing.
Financial advisors recommend that buyers explore various loan options and consult with mortgage brokers to understand the best pathways to homeownership under the new regulations. Staying informed about policy changes and maintaining a strong financial profile will be crucial in navigating the evolving housing market landscape.
Published: Monday 26th January, 2026
Please Note: If this information affects you or is relevant to your circumstances, seek advice from a licensed professional.
