New Lending Rules in 2026: What Borrowers Need to Know
Recent APRA adjustments and lender-led policy changes are reshaping how loans are assessed in 2026. A review across Google, Bing and Yahoo reveals similar themes, but varying depth:
- Google provided detailed analysis of assessment rate changes
- Bing emphasised responsible lending obligations
- Yahoo referenced historical comparisons rather than forward-looking insights
This blog integrates all findings and adds a structured explanation of how the rules impact borrowing power and property prices nationwide.
Why Lending Rules Matter to Borrowers
Lending rules directly affect:
- how much you can borrow
- whether you qualify for pre-approval
- your deposit requirements
- your ability to refinance
- overall homeownership accessibility
When assessment buffers change, borrowing capacity can shift significantly across the country.
Borrowing Power Is Increasing in 2026
In 2023, many banks assessed loans at approximately 9 percent.
In 2026, some lenders assess around 7.0–7.5 percent.
This can increase borrowing power by:
- $40,000 to $120,000 for couples
- $25,000 to $70,000 for single applicants
This is particularly important for first home buyers entering expensive markets.
Impact On Property Prices by Capital City
Sydney
Borrowing power recovery is likely to stabilise prices and increase competition in the lower-priced house and apartment market.
Melbourne
Moderate growth expected as buyers regain capacity.
Brisbane & Adelaide
Competition is expected to intensify due to already strong demand.
Perth
Sharp increases remain possible due to affordability and population growth.
Canberra
Stable with gradual upward pressure.
Hobart & Darwin
More modest growth, though improved borrowing power may draw additional buyers.
Who Benefits Most From the New Rules
- first home buyers
- buyers using 5 percent deposit no-LMI schemes
- refinancers who previously failed serviceability
- property investors scaling portfolios
- separated borrowers restructuring finances
FAQs
1. Do all lenders apply the new rules the same way?
No. Each lender uses its own serviceability model.
2. Will borrowing power increase again in 2026?
Possibly, depending on interest rate reductions.
3. Are first home buyers better off under these changes?
Yes, particularly with improved buffers and government schemes.
4. Do the rules help refinancers?
Yes. Many borrowers who failed serviceability previously may now qualify.
5. Will property prices rise because of the new rules?
Increased borrowing capacity often contributes to price pressure.
Book a free borrowing power assessment to see how the 2026 lending rules affect your loan options.
