Reduction in Serviceability Rates – Can You Borrow More?
Earlier this month, the Australian Prudential Regulation Authority (APRA) finalised its revised guidance on serviceability assessment rates for lenders in relation to loan applications. Previously, APRA required all lenders to calculate a borrower’s capacity to repay a loan using a mandatory minimum interest rate of 7% per annum. Common industry practice for lenders was to use […]