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Australia Caps Lending at 20% to Curb Property Surge

11/27/2025

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Summary

Story summary

The Australian Prudential Regulation Authority (APRA) announced a 20% cap on new lending at debt-to-income ratios above six to address the overheated property market.
The measure takes effect in February and, according to Treasurer Jim Chalmers, aims to boost financial resilience and housing affordability.
Critics, including Greens, say the cap is insufficient, and experts say it will not meaningfully affect prices or lending growth because few loans exceed the threshold.

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Story summary

The Australian Prudential Regulation Authority (APRA) announced a 20% cap on new lending at debt-to-income ratios above six to address the overheated property market.
The measure takes effect in February and, according to Treasurer Jim Chalmers, aims to boost financial resilience and housing affordability.
Critics, including Greens, say the cap is insufficient, and experts say it will not meaningfully affect prices or lending growth because few loans exceed the threshold.