APRA’s cap may not impact prices, but could limit investor strategies, experts say
Last week, the Australian Prudential Regulation Authority (APRA) unveiled new debt-to-income (DTI) limits aimed at curbing potential housing-related risks before they escalate in the financial system.
From 1 February 2026, banks will cap home loans exceeding six times income at 20 per cent of new lending, with exemptions for new home purchases, construction, and bridging finance.
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While the measure aimed to shield the financial system from the rise in highly leveraged borrowers, property experts have cautioned that it could unintentionally squeeze investors and reduce rental supply.
According to Cotality’s research director, Tim Lawless, APRA’s move was widely…
