This unprecedented growth has prompted APRA to implement new measures aimed at curbing high-risk mortgage lending. Effective February 2026, the regulator will enforce a cap, limiting banks to allocating no more than 20% of new mortgages to borrowers whose total debt exceeds six times their income. This policy is designed to mitigate potential risks associated with escalating property prices and accelerated credit growth.
For prospective borrowers, especially those considering investment properties, these developments underscore the importance of understanding lending criteria and regulatory changes. It's crucial to assess one's financial position thoroughly and to be aware of how such regulatory measures might impact loan eligibility and terms.
As the lending landscape evolves, staying informed about market trends and regulatory policies will empower borrowers to make sound financial decisions. Consulting with financial advisors and utilizing reputable loan comparison tools can provide valuable insights into the most suitable loan options available.
Published: Sunday 1st March, 2026
Please Note: If this information affects you or is relevant to your circumstances, seek advice from a licensed professional.
