Overview
- The cap covers mortgages with debt‑to‑income ratios above six and is applied separately to investor and owner‑occupier lending.
- APRA reports about 4% of new owner‑occupier loans and 10% of investor loans currently exceed the threshold, with a small number of lenders near or above the cap.
- Bridging loans and finance for new dwelling construction are excluded, and the existing 3% mortgage serviceability buffer remains.
- Treasurer Jim Chalmers endorsed the move as prudent, while Greens senator Barbara Pocock argued for tougher, investor‑specific measures.
- APRA indicated it may add investor‑targeted limits if risks increase, and it does not expect short‑term access to credit to be materially affected.