Wednesday 28th January 2026
What 2026’s Lending Rule Changes Mean for Your Borrowing Power
Australia’s home‑loan landscape is shifting fast in 2026. New lending rules, tighter bank policies, and regulator‑imposed limits all affect how much clients can borrow — and how mortgage brokers help them navigate the changes.
1. Debt‑to‑Income (DTI) Limits Are Now in Force
Beginning 1 February 2026, APRA introduced formal DTI restrictions that limit how many loans banks can write at six times income or more. High‑DTI loans can now make up no more than 20% of new lending.
What this means for you
- Borrowing capacity may be lower than in previous years.
- Applicants with multiple existing debts may need restructuring or debt reduction strategies.
- Brokers play a crucial role in presenting applications that meet new serviceability standards.
2. Trust and Company Lending Has Tightened Significantly
Major lenders including Macquarie Bank, CBA, and ANZ have restricted or paused new lending to trusts and companies due to rising compliance risks.
Why this matters
- Investors who previously used trusts to increase borrowing may need to reconsider structures.
- Lending in personal names may provide more options under 2026 policy settings.
3. Fixed‑Rate Pricing Signals Higher Rates Ahead
Banks have pre‑emptively raised fixed rates heading into 2026 due to inflation pressures and expectations of RBA hikes. CBA, for example, lifted its two‑year fixed rate by 0.35% to 5.94%.
Consumer takeaway
Locking in fixed rates now comes at a higher cost — and variable‑rate borrowers may face further increases.
