APRA tightens DTI lending limits — what it means for borrowers
In November 2025, APRA announced new limits on high debt-to-income (DTI) lending, capping the share of new mortgages banks can write at a DTI ratio of six or more at 20%, effective 1 February 2026.
The Reserve Bank of Australia’s (RBA’s) latest Financial Stability Review showed why: high DTI lending to investors had already been rising sharply in the months before the limits took effect. The RBA flagged that banks with higher concentrations of investor lending are most likely to feel the pressure first.
For property investors, this is already playing out in practice. In some cases, borrowers who comfortably pass a bank's serviceability assessment are still being knocked back because of where their DTI sits. But there are real solutions. Non-bank lenders sit outside APRA's limits entirely, and choosing your lender carefully can make the difference between an approval and a decline. Lender choice has never mattered more, and that's where an experienced mortgage broker adds value.
About the author – Alex Veljancevski is a Sydney Mortgage Broker with Eventus Financial, which assists first home buyers, investors, upgraders and borrowers seeking to refinance to a better deal on their home loan.