In this urgent episode of SugarMamma’s Fireplay , I sit down with senior mortgage broker John Micalizzi from Blue Lantern Home Loans to unpack APRA’s new Debt-to-Income (DTI) rules – what they mean, who’s most at risk, and why you cannot afford to ignore your numbers. John can assist you with any concerns regarding your DTI. John' contact details:
[email protected] Mobile: 0411 706 228 Blue Lantern address: Level 6, 309 George Street, Sydney, NSW 2000 If you have: A large mortgage Investment properties Interest-only loans Or you’re planning new lending, refinancing or debt recycling …this episode is essential listening. We talk about why this change is a proactive “pre-emptive strike” by APRA , how the new 20% cap on high DTI loans works, and the very real risk of being pushed into higher repayments , forced P&I , or simply being told no by your bank – especially with current backlogs and delays across the major lenders. What we cover inside the episode What DTI actually is – How to calculate it in plain language (total debt ÷ total gross income) – Why all debts count: mortgages, credit cards, HECS/HELP, personal loans, etc. APRA’s new DTI rule explained – The new cap on loans with DTI of 6 or more – Why APRA has brought this in now as a protective measure – Why it’s a blanket rule across owner-occupiers and investors Who’s safe and who needs to worry – Borrowers with DTI well under 6 vs those above 6 – Why high-debt, high-leverage borrowers and some investors are most exposed – Why construction and bridging loans are treated differently Why interest-only borrowers must act early – How to check when your interest-only term expires – Why extending I/O is effectively a new application (full reassessment) – The double hit risk: Rolling from I/O to P&I (big repayment jump) Rolling to an old, uncompetitive “roll-to” rate from years ago Life changes that can push you into high DTI territory – Going from two incomes to one (having a family, study breaks, job loss) – Why timing and lender policy really matter here – Why you need a broker who knows which lenders can work with maternity leave, self-employed income and more complex scenarios Pre-approvals and the 1 February deadline – What to do if your pre-approval expires after 1 Feb – How your borrowing power could change under the new cap – Why you may need to reset your expectations on price or timing Backlogs, complexity and why you can’t leave this to the last minute – The current delays at many banks for new loans, refinances and restructures – Why higher DTI = more complexity = more questions = more time – Why you cannot expect to “sort it out in 48 hours” Practical steps to protect yourself now – How to check your own DTI and loan terms – Cleaning up your debts: unused credit cards, HECS/HELP strategy, etc. – When you should consider refinancing, restructuring or going P&I on purpose – Why working with an experienced broker can give you more options, more clarity and someone to advocate for your case with the lender 3 urgent actions after you listen Jump into your internet banking – Check: loan types, interest-only vs P&I , and expiry dates on I/O terms. Roughly calculate your DTI – Add up all your debts (home loans, investment loans, credit cards, personal loans, HECS/HELP, etc.) – Divide by your total gross income (yours + partner’s, plus rental income, dividends, etc.). If your DTI is high OR your interest-only term expires within 12 months – Do not wait. – Reach out for advice before the new rules + bank backlogs box you into a corner. 💬 Let’s Keep the Conversation Going I’d love to hear your thoughts on this episode! Reach out to me anytime on Instagram @SugarMammaTV so we can keep this important conversation alive. 📚 My Books If you’re ready to deepen your financial knowledge, check out my books: Best Seller: The $1000 Project **Mindful Money]( https://amzn.to/3RV0poc ) Motivated Money by Peter Thornhill (a huge inspiration for me): Read it here (These are Amazon affiliate links to my own books.) 💡 Work With Me Want more support on your financial journey? Here’s how we can work together: The SugarMamma Budget & Cashflow Academy Sick of living paycheque to paycheque or feeling overwhelmed by your money? This course includes a one-on-one appointment with me so I can personally help you. 👉 Enrol here Money Mindset & Manifestation Coaching Join my program for ongoing support, clarity, and motivation. You’ll get direct access to me and a community of like-minded people ready to make powerful change. 👉 Join here 🌟 Stay Connected & Inspired Instagram: @SugarMammaTV — money, budgeting, cashflow &
