As we navigate the final days of January 2026, the Australian mortgage market is entering a pivotal phase marked by new regulatory “guardrails” and a significant digital revival in specialist lending. For homeowners and investors, understanding these shifts is essential to securing financing before the next wave of policy changes takes effect in February.

The February 1st “DTI Guardrail”: What You Need to Know

Starting February 1, 2026, the Australian Prudential Regulation Authority (APRA) will officially activate its first cap on high debt-to-income (DTI) lending.

• The 20% Limit: Banks will be restricted to issuing only 20% of their new mortgages to borrowers whose total debt is six times their income or higher.

• Separate Portfolios: This cap applies separately to owner-occupiers and investors, preventing one group from impacting the borrowing power of the other.

• Strategic Exemptions: Notably, loans for the construction or purchase of new dwellings are exempt from these DTI limits, as part of a broader government effort to boost housing supply.

The Digital SMSF Revival: AMP Re-enters the Space

In a major win for self-managed super fund (SMSF) investors, AMP Bank has officially re-entered the residential SMSF lending space as of January 26, 2026.

• Digital-First Pilot: The lender is currently trialing a broker-first digital solution designed to streamline the traditionally complex SMSF application process.

• Full Product Features: The new offering includes an offset account, a feature previously rare in the SMSF space, providing investors with greater flexibility in managing their fund’s cash flow.

NSW Breakthrough: The $1 Billion Pre-sale Guarantee

The NSW government has launched the first major project under its $1 billion Pre-sale Finance Guarantee.

• Unlocking Stalled Projects: This initiative allows eligible developers to access cheaper, bank-style capital by having the government guarantee off-the-plan sales that would otherwise be a hurdle for traditional lenders.

• Rozelle Village: The first project supported is the Rozelle Village in Sydney, which will deliver 225 units, including 32 affordable homes that might have otherwise stalled due to pre-sale requirements.

Critical Deadlines for Victorian Property Owners

If you own property in Victoria, two major tax deadlines are approaching in February 2026:

• Vacant Residential Land Tax (VRLT): Owners of properties that were vacant for more than six months in 2025 must notify the State Revenue Office (SRO) by February 15, 2026.

• Unimproved Land Expansion: From 2026, VRLT also applies to land in metropolitan Melbourne that has remained undeveloped for five continuous years or more