APRA is stepping in—what does the new DTI limit mean for you? 🛑
APRA has just announced a new “preemptive” move to contain housing-related risks in the financial system. Starting February 1st, new rules are coming for debt-to-income (DTI) lending.
The Key Changes:
- Banks (ADIs) must limit new home loans with a DTI ratio of 6 or more to a maximum of 20% of their total new lending.
- This means 80% of new mortgages must have a DTI under 6.
- The limits apply separately to owner-occupiers and investors.
Why it matters: While lending standards remain generally sound, APRA is acting now to prevent “vulnerabilities” from building up. This “subtle lever” is designed to act as a guardrail rather than a blunt instrument, primarily affecting investors who typically borrow at higher ratios. If you’re planning to expand your portfolio in 2026, it’s time to look closely at your borrowing capacity.
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