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Loan Types & Features

Assessment Rate

The higher rate lenders test you at — not what you actually pay.

What is Assessment Rate?

The assessment rate is the higher interest rate a lender uses to test whether you can afford your loan — usually your actual rate plus a 3% buffer required by APRA. If your rate is 6%, you're assessed at 9%.

Why it matters for you

Your borrowing capacity is calculated at the assessment rate, not your real rate — which is why most borrowers can afford more comfortably than lenders will approve. Different lenders apply different floors and buffers, so the same applicant can have very different borrowing capacity across lenders.

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Related terms

The 3% margin APRA adds to your rate when testing serviceability.

Loan Types & Features

Whether you can afford the loan — and every lender calculates it differently.

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The regulator whose rules quietly shape how much every Australian can borrow.

Legal & Process
Last updated: April 2026