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Changes in the home loans landscape

New lending restrictions will affect different parts of the property market more than others - dig into the details and find out what the changes mean for first homebuyers, investors and trade-up buyers.

Joel Davoren
Joel Davoren says markets will remain strong once APRA implements its new lending rules, but future growth could be constrained if the regulator takes further action to cool property prices.

This month the Australian Prudential Regulation Authority (APRA) announced that lenders need to increase their serviceability buffer from a minimum 2.5 per cent to at least 3.0 per cent, asking lenders to implement the changes from 1st November. 

¬†Through concern about the level of debt that borrowers are carrying relative to their income, APRA hopes changing the rules around how banks assess the serviceability of home loans will cool rising hou…