APRA lifts scrutiny of investor lending as serviceability buffers bite
The prudential regulator wrote to ADIs seeking detail on exception lending, in a sign it is watching the edges of the mortgage book closely.
Priya Nair
Banking & Credit Correspondent · Tuesday 2 June 2026 · 5 min read
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The Australian Prudential Regulation Authority has asked the major banks for granular data on loans written outside standard serviceability policy, according to correspondence seen by the Uncorrelated Finance.
The 3 percentage point serviceability buffer remains unchanged, but APRA flagged it is monitoring the share of 'exception' lending creeping higher at some institutions.
Bank treasurers say the request is consistent with the regulator's stated focus on housing credit quality rather than a precursor to tighter macroprudential settings.
Investor lending has reaccelerated this year even as owner-occupier demand softened, a divergence APRA has previously said it watches closely.
Analysts expect no change to the buffer near term, but warn that a sustained rise in high-DTI lending could prompt targeted limits.
Priya Nair
Banking & Credit Correspondent · Former prudential analyst
Priya tracks APRA, the major banks, lending standards and credit markets.