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The APRA 3% serviceability buffer requires lenders to assess your ability to repay at your actual rate plus 3%, effectively reducing your maximum borrowing capacity.
APRA requires all lenders to assess whether you can afford repayments at your actual rate plus 3%. This means if your rate is 6.47%, the bank tests you at 9.47%. This reduces how much you can borrow by approximately 15–20%.
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