Invest
Singles to bear the brunt of new lending restrictions
Macroprudential measures aimed at cooling the property market are expected to affect single income earners the most.
Singles to bear the brunt of new lending restrictions
Macroprudential measures aimed at cooling the property market are expected to affect single income earners the most.
High debt-to-income lending has become a major focus of regulators, with restrictions expected to be introduced in the coming months.
BuyersBuyers co-founder Pete Wargent suggested that new lending restrictions would be detrimental to singles who are planning on buying a home, particularly for first home buyers.
“Single income earners might find that they can’t borrow as much next year, which will make life tricky for those struggling to get into the housing market,” Mr Wargent said.
Regulators are expected to target loans with a debt-to-income ratio of six times or more, which made up 22 per cent of total loans in the June quarter of this year compared to 16 per cent in the June quarter of 2020, according to data from the Australian Prudential Regulatory Authority (APRA).
Measures similar to those being considered by local regulators that have been introduced overseas produced mixed results, according to Mr Wargent.
“For example, there was a sharp increase in joint income borrowers and a marked decline in first home buyers on a single income,” he said.
“Debt-to-income caps would be likely to change the shape of the mortgage market, but while some lenders might reduce their volume of lending at higher multiples of income, others might step into the fold or increase mortgage sizes to compensate.”
Mr Wargent said he expected that the more affordable suburbs of Australia’s capital cities will increase in popularity in response to the looming restrictions.
“The benefits to financial stability are up for debate, but it’s very likely that such a move would knock more first home buyers and single income earners out of the market, at the expense of higher-income upgraders and joint income loan applicants,” Mr Wargent said.
Following a meeting of the Council of Financial Regulators, APRA confirmed it plans to release an information paper on its framework for implementing macroprudential policy “over the next couple of months”.
The regulator also said it would continue to consult with the council — which also includes the Reserve Bank of Australia, the Treasury and the Australian Securities and Investments Commission — on the potential implementation of any measures in the future.
RELATED ARTICLES
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
Property
Property advice goes rogue as risks and opportunities knock on every door
A warning from the Property Investors Council of Australia has put a spotlight on the surge of unlicensed financial advice around property strategies. This is no niche compliance issue—it’s a ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Home guarantee scheme shake-up challenges Australia’s housing market players
From 1 October 2025, the expanded Home Guarantee Scheme (HGS) materially widens what first-home buyers can purchase and where. By sharply lifting price caps and relaxing eligibility settings, the ...Read more
Property
GSB’s first‑home buyer play: turning policy tailwinds into market share
Great Southern Bank’s latest results show that nearly one in three of its new mortgages now go to first‑home buyers—evidence of a fast‑moving market reshaped by government guarantees, easing rates and ...Read more
Property
Why investors are fleeing and renters are scrambling in Australia's housing maze
Australia’s rental market is tightening even as individual landlords sell down. New data points to a multi‑year investor retreat tied to higher holding costs and regulatory uncertainty, while prices ...Read more
Property
Australia's 5% deposit guarantee: Unlocking gains while balancing risks in the market share race
Can a bigger government guarantee fix housing access without fuelling prices? Australia is about to find out. The Albanese government’s expanded 5% deposit pathway aims to help 70,000 buyers, remove ...Read more
Property
Australia's bold move the 5% deposit scheme shaking up the housing market
Can a government guarantee replace lenders mortgage insurance without inflating prices or risk? Canberra’s accelerated 5% deposit scheme is a bold demand-side nudge in a supply‑constrained marketRead more
Property
When rates drop but stress sticks: exploring Australia's mortgage arrears dilemma
Headline numbers suggest arrears ease as rates come down. The reality in Australia is messier: broad measures dipped into mid‑2025, yet severe delinquencies and non‑bank portfolios remain under ...Read more
Property
Property advice goes rogue as risks and opportunities knock on every door
A warning from the Property Investors Council of Australia has put a spotlight on the surge of unlicensed financial advice around property strategies. This is no niche compliance issue—it’s a ...Read more
