A broker's guide to the key policy shifts of 2025. Navigate the contradiction of fierce competition and tight regulation.
APRA has confirmed the mortgage serviceability buffer is here to stay, creating a permanent disconnect between falling interest rates and maximum borrowing capacity.
Serviceability Buffer
In response to APRA's warnings, major banks have set their own Debt-to-Income caps. A client's viability is now highly lender-dependent.
Lenders are aggressively courting the 2 million+ self-employed Australians by simplifying documentation requirements.
2 Years of Docs
(The Old Way)
1 Year of Docs
Led by Westpac & ANZ
While Westpac and ANZ lead with one-year assessments, ANZ's removal of the 3% buffer on asset finance can have a greater material impact on borrowing capacity for business owners.
A strong applicant can be declined if the security property itself falls outside a lender's tightening risk appetite.
A 45% collapse in new multi-unit construction since 2016 has lenders spooked, leading to tighter LVRs in high-density postcodes.
Financing is a major challenge. Typically capped at 80% LVR and restricted to a handful of high-demand inner-city postcodes.
Lenders maintain internal lists of restricted postcodes due to overexposure, economic reliance, or property type concentration.
Cashback offers are the primary weapon in a hyper-competitive refinance market. Here's who is offering the most upfront cash.