The 2026 Borrowing Ceiling
APRA’s new DTI limits officially start Feb 1.
But for your pipeline, the real deadline is December.
The Operational Timeline
Why the Christmas shutdown is your actual deadline.
Audit Pipeline
Identify all clients >6x DTI immediately.
Danger Zone
Lenders adjust engines. Pre-approvals at risk.
The Freeze
Policy shifts for Q1 compliance. High DTI effectively closed.
Official Start
APRA 20% cap legally binding.
The "Rationing" Effect
It's not a ban, it's a bucket. Lenders can write high-DTI loans (≥6x), but only up to 20% of their new flow.
The Practical Implication
A lender might be "open" in Month 1, but "closed" by Month 3 if their bucket fills. This creates timing risk for your clients.
Run the Simulation
Quarterly Lending Volume
High DTI must stay under 20%
The Investor Trap: "Shading" Reality
Banks "shade" rental income (typically 80%) when calculating serviceability. This often pushes investors into the capped bucket even if their "real" DTI looks safe.
Client Scenario
⚠️ At Risk
This client exceeds the 6x cap due to shading. They will be subject to the 20% limit rationing.
Pipeline Audit Tool
Filter your CRM to find high-leverage pre-approvals.
Mock CRM Pipeline
| Client | Status | Calc DTI | Action |
|---|
The Christmas Sprint
Don't rely on a single lender's appetite in 2026. Execute this plan now.
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1. Audit CRM
Filter for DTI > 5.5 to account for buffers.
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2. Contact High-DTI Clients
Warn them of the "Jan Freeze".
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3. Convert to Formal
Aim for Unconditional before Dec 20.
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4. Diversify Lenders
Find mutuals with capacity.