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APRA finally relaxes loan serviceability conditions

July 16, 2019

Potential home buyers will be able to breathe a little bit easier after APRA’s (The Australian Prudential Regulatory Authority) recent policy reform resulted in the loosening of lending conditions.

The regulatory change means that new borrowers now only need to show capability to service their loan 2.5% above their current interest rate, rather than at a rate of 7% as it had been in the past. This will help more people qualify for home loans as well as borrow larger amounts.

Dale Alcock, ABN Group Managing Director commented that,

“This is fantastic news for the property market and welcome news for many Australians who currently cannot afford a home loan or who may be struggling to afford the home they want.

The move will ultimately see more people getting onto the property ladder faster and boost their buying power so they can purchase the home they really want”.

This policy reform comes at the perfect time as WA’s property market is slowly on the rise and this will provide much needed market stimulus and help restore confidence in the property market.


This is a summary of the article APRA works to ease lending rules by Michael Roberts published in The West Weekend | West Real Estate Page 2 | July 13 – 14, 2019.