General information only. This article explains a banking regulation and how lenders apply it. It is not financial advice. Correct as at November 2026.
APRA debt to income limit, the short answer: it does not ban loans above six times your income. It caps how much of that lending each bank can write.
Since February 2026, banks must keep new home loans with a debt-to-income ratio of six or more to no more than 20% of their new lending. The cap applies separately to owner-occupier and investor loans.
So the APRA debt to income limit can make a high-DTI investor loan harder to get at some banks in some quarters, but it is not a personal ceiling on what you can borrow.
The Australian Prudential Regulation Authority (APRA) supervises banks, credit unions and building societies, known as ADIs. In late 2025 it activated debt-to-income (DTI) limits as a macroprudential tool, starting from February 2026.
The core rules are:
Your DTI ratio compares your total debt with your gross income. Total debt includes the new loan plus your existing home loans and other debts. Income is your income before tax.
For example, a household earning $150,000 a year reaches the DTI cap of 6 times income at $900,000 of total debt. If the same household already owes $600,000, a new $350,000 investment loan takes them to a DTI of about 6.3.
APRA uses macroprudential tools to stop risky lending building up across the banking system. In its May 2026 update, it said high-DTI lending had been increasing over the past year.
Keeping the limits in place gives banks a guardrail. If high-DTI lending keeps growing, the 20% cap stops it becoming a large share of new loans.
Six times gross income is simple arithmetic, but it shows how quickly an investor can reach the line:
Not on its own. Each bank can still lend at a DTI of six or more, as long as those loans stay within its 20% allowance. Whether a bank says yes depends on its own policy, its appetite that quarter and your serviceability.
APRA said on 28 May 2026 that high-DTI lending remained well below its limits, based on preliminary March quarter data. It also noted that this lending had been rising, which is why the limits stay in place as guardrails.
There is no single figure. Your investor borrowing limit in 2026 is set by the lowest of three tests:
Take a couple earning $180,000 a year. They owe $650,000 on their home, $25,000 on a car loan and have $15,000 of credit card limits. Their total debt is $690,000, a DTI of about 3.8.
They want a $500,000 loan for an established investment property. Total debt would rise to $1,190,000, a DTI of about 6.6, so the new loan would count as high-DTI lending.
Their options include closing the unused card limits, paying off the car loan, choosing a new build that sits outside the APRA debt to income limit, or applying with a lender that has room in its allowance.
Yes. For a joint application, lenders generally combine the applicants’ gross incomes and their total debts. Adding a second income can lower the ratio, but adding a second person’s debts can raise it.
How each lender counts rental income and other income types differs, so the same household can show a different DTI with different lenders.
APRA exempts two kinds of lending from the cap:
The new build DTI exemption means a loan to buy a new dwelling, or to construct one, does not count towards a bank’s 20% high-DTI allowance. For an investor near six times income, that can open doors an established property would not.
New builds have other trade-offs, including construction risk, valuation and rental demand. Our comparison of new build vs established investment property in Perth covers those in detail.
Federal tax settings now also treat new builds differently. Read our summary of the negative gearing changes for 2026 before you decide.
APRA’s limit applies to ADIs. Non-bank lenders are not ADIs, so the APRA debt to income limit does not apply to them directly, although they still have their own credit policies and responsible lending duties.
For some investors with a high DTI, a non-bank lender may be an option. Rates, fees and terms differ, so compare the full cost before you choose.
If you are close to six times income, small changes can move your ratio:
We hear these often from Perth investors, and none of them are correct:
Start with your numbers. Our guide to how much you can borrow in Perth explains how lenders assess serviceability, and our article on getting a second investment property loan in Perth covers structure.
Then speak with a broker who tracks lender policy. An investment property mortgage broker in Perth can tell you which lenders have room under the APRA debt to income limit for your situation, before you make an offer.
APRA’s limit applies from February 2026. It covers new lending only, so loans you already have are not affected.
No. It limits how much high-DTI lending each bank can write, at 20% of new lending. An individual can still borrow at six times income or more if a lender has room and you pass serviceability.
Lenders generally count all your debts, including the new loan, existing home loans, car loans, personal loans and credit card limits, then compare the total with your gross income.
No. Since 30 September 2025, APRA has excluded HELP debt from the DTI reporting definition. Your compulsory HELP repayments can still reduce your serviceability.
Yes. Loans to buy or construct new dwellings are exempt, as are owner-occupier bridging loans.
In its 28 May 2026 update, APRA kept the DTI limits and the 3 percentage point serviceability buffer unchanged, noting high-DTI lending was well below the limits.
Related Resources from Strawberry Finance:
The information in this article is general in nature and does not take into account your objectives, financial situation or needs. It is not financial advice. Lender policies change and differ between lenders. Sahil Saini is an authorised Credit Representative (no: 526177) of ratesonline.com.au Pty Ltd (ACN 122 052 582), Australian Credit Licence 384404. Lending is subject to lender credit criteria, terms, conditions and fees. Correct as at November 2026.
