Finance Specialist: Decoding the DTI cap

A major regulatory shift is set to reshape the borrowing landscape, with APRA unveiling a new debt-to-income (DTI) cap that's sparked debate across the finance sector. In this episode of Finance Specialist, host Liam Garman sits down with co-host Trent Carter to unpack what the cap really means for brokers, borrowers, and lenders navigating a tightening credit environment. Garman and Carter unpack APRA's move to limit banks to writing only 20 per cent of new loans above a DTI of six, industry reaction from commentators concerned about borrower access, and why perceptions of restricted credit don't always align with the numbers. They also dive into the ripple effects for first home buyers, investor activity, and SME owners who rely on property-backed lending, and why this shift could accelerate a move toward genuine business lending grounded in cash flow and balance sheet strength. Carter underscores how brokers can differentiate themselves by interpreting regulatory change and guiding clients through more complex borrowing decisions as the industry recalibrates ahead of February.

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