APRA, the banking regulator, has announced its first formal debt-to-income (DTI) limit, marking a significant shift in how banks assess and manage mortgage risk. While this applies to all borrowers, the implications for medical professionals are distinct and worth understanding early.
APRA will now restrict banks from issuing more than 20% of new loans to borrowers with a DTI above six times their income.
A simple example:
Borrowing $1 million on a $166,666 income = 6× DTI.
The cap applies separately to:
At present, only a small portion of lending exceeds the six-times threshold, meaning the new cap is not immediately restrictive. But APRA has been clear this is a pre-emptive move, and further limits (particularly for investors) remain possible.
Why APRA Is Doing This
APRA is responding to:
Investor loans are a key focus because they tend to drive price cycles and are more likely to be sold in downturns.
This is the first macroprudential tightening since interest-only and investor restrictions were phased out in 2018.
Doctors generally enjoy strong borrowing capacity, but career timing, cashflow variability and complex structures can make DTI management more nuanced. Here’s how the change affects different cohorts.
1. Most doctors won’t feel an immediate impact
Banks are currently well below the new 20% limit.
For established GPs, specialists, or fellows with stable incomes, borrowing capacity should remain largely unchanged in the short term.
2. Early-career doctors may experience closer scrutiny
Registrars and IMGs often have:
This can temporarily push DTI higher.
Banks may respond with:
This reinforces the importance of early planning before a purchase or relocation.
3. Practice buy-ins must now be sequenced more carefully
Buying into a practice often requires:
If personal DTI is already stretched, securing additional funding becomes harder.
This is why we model practice-buy-in lending pathways 12–24 months ahead.
4. Doctors building investment portfolios should monitor DTI closely
Multiple investment properties can quickly push DTI beyond six—especially if structures (trusts/companies) are not aligned with lender policy.
Future impacts may include:
A periodic lending review is becoming essential, not optional.
Check your current DTI
Most doctors don’t know their true DTI, especially if they have mixed income streams or multiple loans.
Plan major decisions early
New jobs, relocations, home purchases and practice buy-ins should be sequenced well in advance.
Align structure, tax and lending
Misalignment is one of the biggest, and most avoidable causes of DTI issues and borrowing delays.
Stabilise cashflow
Banks favour predictable income and buffers, especially for IMGs and early-career doctors navigating tax timing.
APRA’s new DTI limit signals a shift toward long-term lending stability. For doctors, the real message is clear:
Lending decisions now require earlier planning, cleaner structures, and stronger alignment between income, entities and borrowing
strategy.
Want to Understand How This Affects Your Borrowing Capacity?
If you’re planning a home purchase, investment property, relocation, or practice buy-in, now is the right time to get clarity on your DTI position and lending readiness.
You can start with our Doctor Financial Scorecard — a doctor-specific diagnostic that identifies structural, cashflow and lending risks before they become costly mistakes.
It takes a few minutes and provides a clear starting point for informed decision-making.
→ Start your Doctor Financial Scorecard
→ Or contact us if you have an upcoming lending or practice
purchase decision
Tommy Li, CA
Director, Verity Advisory | Registered Tax Agent | Authorised Financial Adviser (ASIC Rep No. 1261831) | Member, Chartered Accountants Australia & New Zealand
Tommy is a Chartered Accountant with 20+ years advising medical professionals on tax, financial structure and practice decisions. He founded Verity Advisory to provide integrated advice for doctors at career-defining financial inflection points — combining tax, lending and financial planning into a single structured approach.
High-earning medical contractors in Australia are often unknowingly trading borrowing capacity for tax savings. Here is why that conflict exists and what integrated advice looks like when both are addressed together.
If you’re considering using your self-managed super fund (SMSF) to buy property, you’ll need the right structure in place. One of the main ways to do this is through a Limited Recourse Borrowing Arrangement (LRBA).
Most Australians who’ve owned their home for 3+ years have built significant equity.
The big question is: are you putting it to work, or letting opportunity slip away?
In our latest blog, I share common mistakes to avoid when leveraging equity for investing — and we’ve also included a 7-Step
Checklist
you can use straight away.