Exciting news for home buyers!

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Following the Reserve Bank’s further cut to the cash rate to a historic low of 1%, the Australian Prudential Regulation Authority (APRA) announced that they will implement new changes to its guidance on mortgage lendings and how banks assess your borrowing capacity.

Up until now, most banks would assess whether customers could afford their mortgage repayments at an interest rate of 7%.

However, the APRA's changes now allow banks to apply a 2.5% serviceability buffer to the interest rate they've quoted.

Key points for aspiring property owners to take away:

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Your borrowing capacity could increase up to 10% or more, giving you a better opportunity to be able to purchase the home of your dreams!

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If you have had difficulty with finance in the past, you may suddenly find that you can now get your home loan approved!


The APRA’s rule relaxation, along with the RBA's recent cash rate cuts, will make it easier for prospective home buyers to get bigger home loans.

There has never been a better time to buy a new home!