APRA’s lending crackdown: What new debt caps mean for property investors

In Short:
– Tim Graham and Cameron Kusher discuss APRA’s lending limits and their effects on property investors and markets.
– A national target of 1.2 million houses is unlikely to be met due to high costs and interest rates.

APRA is shaking up Australia’s lending landscape, introducing new caps on high debt-to-income ratios from next year.

To break down what this really means, Cameron Kusher from Hotspotting joins Tim Graham to explain how these changes differ from past interventions and why regulators are tightening the screws now.

We explore which types of investors are most likely to feel the squeeze, from highly leveraged buyers to those relying on aggressive portfolio expansion. Cameron also explains how these policies could shift investor behaviour and reshape borrowing strategies heading into 2025.

With Australia already battling housing supply constraints, we look at whether these restrictions could create unintended consequences — including slowing down investment, construction, and the national goal of delivering 1.2 million homes by 2029.