APRA (Australian Prudential Regulation Authority)
The regulator whose rules quietly shape how much every Australian can borrow.
What is APRA?
The Australian Prudential Regulation Authority is the regulator that oversees banks, insurers and super funds. APRA's rules shape how lenders assess serviceability, how much buffer they apply to your assessed rate, and how much capital they must hold.
Why it matters for you
When APRA tightens — as they did with the 3% serviceability buffer — borrowing capacity drops across the whole industry. When they loosen, it rises. Your borrowing power isn't only a function of your income; it's a function of what regulators decide is prudent.