Australia’s new debt-to-income (DTI) lending cap, which took effect on 1 February 2026, is reshaping how banks assess borrowers – particularly investors and high-income buyers in expensive markets like Sydney. While only 20% of new lending can now go to borrowers with a DTI of six or more, this doesn’t “ban” borrowing; instead, it creates a more competitive environment where clean, well-structured applications, smart use of exemptions such as new-build loans, and strategic timing matter more than ever for anyone looking to build wealth through property in 2026.