APRA DTI Caps 2026 —
What Investors Need to Know

How the DTI cap works

The cap is not a blanket ban on lending above six times income. It is a portfolio-level limit — lenders can still approve individual applications above this ratio, but they cannot do so for more than 20 per cent of their new lending. In practice, this means lenders are more selective about which high-DTI applications they approve.

For investors, the impact is significant. If you have a $600,000 home loan and earn $150,000 per year, your DTI ratio is already 4.0. Adding a $400,000 investment loan takes it to 6.67 — above the six-times threshold. Some lenders will decline this application purely on DTI grounds, even if you comfortably pass the standard serviceability test.

What this means for your borrowing

Not all lenders apply the DTI cap the same way. Some are more conservative, declining all applications above 6x. Others still have capacity within their 20 per cent allowance and will consider applications on their merits. A broker can identify which lenders are currently lending above the DTI threshold and which treat your application most favourably.

How rental income is included in the DTI calculation also matters. Some lenders include gross rental income in the income figure, improving your ratio. Others exclude it entirely, making the ratio look worse. This variation is another reason why working with a broker for investment lending is valuable.

Frequently asked questions