What is Buffer Rate?
The buffer rate is the margin (currently 3% under APRA rules) that lenders add to your actual interest rate when testing serviceability. At a 6% rate, you're assessed at 9%. The buffer is designed to ensure borrowers can withstand future rate rises.
Why it matters for you
The 3% buffer dropped borrowing capacity across the industry when introduced in 2021. It's one of the biggest levers APRA uses to cool (or heat) housing demand. If it loosens, your borrowing power rises — often significantly.
Last updated: April 2026