Buyers may soon be able to borrow more!

APRA have proposed reducing the current 7.25% stress test for new mortgage customers. This would enable buyers to borrow more. Currently, buyers need to prove they can finance repayments based on a 7.25% interest rate. The test was introduced to help ensure sound lending standards but as many lenders are now offering loans less than 4%, the stress test looks a tad overkill.