From February 2026, Borrowing Gets Harder. Plan Before It Does.

From 1 February 2026, new lending rules will change how Australian banks assess higher borrowing levels. For many buyers and investors, the outcome will not hinge on the property they choose. It will hinge on access to finance.

If buying, investing or refinancing is part of your plans in 2026, this change matters.

What is changing

From February, lenders will be limited so that no more than 20 percent of new loans can be written at a debt to income ratio of six times income or higher.

Higher borrowing will still be possible. It will simply become capped and more competitive.

Once a lender reaches its limit, approvals at higher DTI levels may slow, tighten or pause until capacity resets.

Why this changes outcomes

At present, lenders are not restricted.

From February, they will be.

That shift alone can affect borrowing outcomes even when personal circumstances stay the same. A loan structure that works today may require different lenders, tighter terms or added conditions once the cap is in place.

This is not about market speculation.
It is about how lending is assessed.

Who feels this most

This change is most relevant for:

• Property investors
• Borrowers operating near their borrowing capacity
• Households with multiple properties or loans
• Anyone planning to refinance to support their next purchase

Lower debt to income owner occupiers are less exposed. Borrowers focused on growth are more directly affected.

Why timing becomes part of the strategy

Until February 2026, lenders can approve higher DTI loans without a quota.

After that, approvals are rationed.

This creates a more selective lending environment. Borrowers may still move forward, but often with fewer lender options, less flexibility and more friction in the process.

Planning earlier allows more choice and cleaner pathways.

Final thought

Lending policy plays a major role in what is possible and when.

Understanding what is changing allows you to position yourself with clarity rather than adapt after constraints tighten.

If property is part of your plan for 2026, now is the time to check where you stand.

To get help, contact enquiries@propertyclub.com.au to book a complimentary Financial Wealth Check with Property Club. You can also contact us to review your current loans and explore refinancing options to secure a better rate.