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: john@bluelantern.com.au 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 aone-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 & motivation
Instagram:@CannaCampbellofficial — lifestyle, capsule wardrobe fashion, motherhood
TikTok:@SugarMammaTV
YouTube:SugarMammaTV — over 500 bite-sized videos with more than 12 million views!
Website:SugarMammaTV.com
Don’t forget my other podcast:How Do They Afford That? 👉 Listen here

⚖️ General Advice Warning

While we discuss financial topics, everything shared here is general information only — never personal, product, or investment advice. Always:
Do your own research.
Weigh up the pros, cons, fees, caps, taxes, and risks.
Seek professional advice before making financial decisions.

📜 Financial Planning License Details

The information in this podcast does not take into account your personal circumstances, goals, or needs. Always read relevant Product Disclosure Statements before acquiring any financial product, and seek independent financial advice where appropriate.

Canna Campbell is an Authorised Representative and Financial Adviser of Links Licensee Services Pty Ltd (AFSL No. 700012 | ABN 97 678 975 589).

 

In this urgent episode of SugarMamma&rsquo;s Fireplay, I sit down with senior mortgage broker John Micalizzi from Blue Lantern Home Loans to unpack APRA&rsquo;s new Debt-to-Income (DTI) rules &ndash; what they mean, who&rsquo;s most at risk, and why you cannot afford to ignore your numbers.
John can assist you with any concerns regarding your DTI.&nbsp;
John' contact details: <a href="mailto:john@bluelantern.com.au">john@bluelantern.com.au</a> Mobile: &nbsp;0411 706 228 &nbsp;
Blue Lantern address: Level 6, 309 George Street, Sydney, NSW 2000
If you have:
<ul data-start="1720" data-end="1872">
<li data-start="1720" data-end="1744">
A large mortgage
</li>
<li data-start="1745" data-end="1774">
Investment properties
</li>
<li data-start="1775" data-end="1802">
Interest-only loans
</li>
<li data-start="1803" data-end="1872">
Or you&rsquo;re planning new lending, refinancing or debt recycling
</li>
</ul>
&hellip;this episode is essential listening.
We talk about why this change is a proactive &ldquo;pre-emptive strike&rdquo; 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&amp;I, or simply being told no by your bank &ndash; especially with current backlogs and delays across the major lenders.
<hr data-start="2242" data-end="2245">
What we cover inside the episode
<ul data-start="2285" data-end="4565">
<li data-start="2285" data-end="2475">
What DTI actually is &ndash; How to calculate it in plain language (total debt &divide; total gross income) &ndash; Why all debts count: mortgages, credit cards, HECS/HELP, personal loans, etc.
</li>
<li data-start="2477" data-end="2701">
APRA&rsquo;s new DTI rule explained &ndash; The new cap on loans with DTI of 6 or more &ndash; Why APRA has brought this in now as a protective measure &ndash; Why it&rsquo;s a blanket rule across owner-occupiers and investors
</li>
<li data-start="2703" data-end="2952">
Who&rsquo;s safe and who needs to worry &ndash; Borrowers with DTI well under 6 vs those above 6 &ndash; Why high-debt, high-leverage borrowers and some investors are most exposed &ndash; Why construction and bridging loans are treated differently
</li>
<li data-start="2954" data-end="3300">
Why interest-only borrowers must act early &ndash; How to check when your interest-only term expires &ndash; Why extending I/O is effectively a new application (full reassessment) &ndash; The double hit risk:
<ol data-start="3181" data-end="3300">
<li data-start="3181" data-end="3230">
Rolling from I/O to P&amp;I (big repayment jump)
</li>
<li data-start="3235" data-end="3300">
Rolling to an old, uncompetitive &ldquo;roll-to&rdquo; rate from years ago
</li>
</ol>
</li>
<li data-start="3302" data-end="3629">
Life changes that can push you into high DTI territory &ndash; Going from two incomes to one (having a family, study breaks, job loss) &ndash; Why timing and lender policy really matter here &ndash; Why you need a broker who knows which lenders can work with maternity leave, self-employed income and more complex scenarios
</li>
<li data-start="3631" data-end="3875">
Pre-approvals and the 1 February deadline &ndash; What to do if your pre-approval expires after 1 Feb &ndash; How your borrowing power could change under the new cap &ndash; Why you may need to reset your expectations on price or timing
</li>
<li data-start="3877" data-end="4166">
Backlogs, complexity and why you can&rsquo;t leave this to the last minute &ndash; The current delays at many banks for new loans, refinances and restructures &ndash; Why higher DTI = more complexity = more questions = more time &ndash; Why you cannot expect to &ldquo;sort it out in 48 hours&rdquo;
</li>
<li data-start="4168" data-end="4565">
Practical steps to protect yourself now &ndash; How to check your own DTI and loan terms &ndash; Cleaning up your debts: unused credit cards, HECS/HELP strategy, etc. &ndash; When you should consider refinancing, restructuring or going P&amp;I on purpose &ndash; Why working with an experienced broker can give you more options, more clarity and someone to advocate for your case with the lender
</li>
</ul>
<hr data-start="4567" data-end="4570">
3 urgent actions after you listen
<ol data-start="4664" data-end="5226">
<li data-start="4664" data-end="4791">
Jump into your internet banking &ndash; Check: loan types, interest-only vs P&amp;I, and expiry dates on I/O terms.
</li>
<li data-start="4793" data-end="5034">
Roughly calculate your DTI &ndash; Add up all your debts (home loans, investment loans, credit cards, personal loans, HECS/HELP, etc.) &ndash; Divide by your total gross income (yours + partner&rsquo;s, plus rental income, dividends, etc.).
</li>
<li data-start="5036" data-end="5226">
If your DTI is high OR your interest-only term expires within 12 months &ndash; Do not wait. &ndash; Reach out for advice before the new rules + bank backlogs box you into a corner.
</li>
</ol>
<hr data-start="5228" data-end="5231">
<blockquote data-start="5321" data-end="6095">
💬 Let&rsquo;s Keep the Conversation Going
I&rsquo;d love to hear your thoughts on this episode! Reach out to me anytime on Instagram&nbsp;<a href="https://www.instagram.com/sugarmammatv">@SugarMammaTV</a>&nbsp;so we can keep this important conversation alive.
📚 My Books
If you&rsquo;re ready to deepen your financial knowledge, check out my books:
<ul>
<li>Best Seller:<a href="https://amzn.to/3RV0Bnq">The $1000 Project</a></li>
<li>**Mindful Money](<a href="https://amzn.to/3RV0poc">https://amzn.to/3RV0poc</a>)</li>
<li>Motivated Money by Peter Thornhill(a huge inspiration for me):&nbsp;<a href="https://amzn.to/40rn2Vr">Read it here</a></li>
</ul>
(These are Amazon affiliate links to my own books.)
💡 Work With Me
Want more support on your financial journey? Here&rsquo;s how we can work together:
<ol>
<li>The SugarMamma Budget &amp; Cashflow Academy Sick of living paycheque to paycheque or feeling overwhelmed by your money? This course includes aone-on-one appointment with me&nbsp;so I can personally help you. 👉&nbsp;<a href="https://courses.sugarmamma.tv/Signup">Enrol here</a></li>
<li>Money Mindset &amp; Manifestation Coaching Join my program for ongoing support, clarity, and motivation. You&rsquo;ll get direct access to me and a community of like-minded people ready to make powerful change. 👉<a href="https://courses.sugarmamma.tv/join">Join here</a></li>
</ol>
🌟 Stay Connected &amp; Inspired
<ul>
<li>Instagram:<a href="https://www.instagram.com/sugarmammatv">@SugarMammaTV</a>&nbsp;&mdash; money, budgeting, cashflow &amp; motivation</li>
<li>Instagram:<a href="https://www.instagram.com/cannacampbellofficial">@CannaCampbellofficial</a>&nbsp;&mdash; lifestyle, capsule wardrobe fashion, motherhood</li>
<li>TikTok:<a href="https://www.tiktok.com/@sugarmammatv">@SugarMammaTV</a></li>
<li>YouTube:<a href="https://www.youtube.com/c/SugarMamma">SugarMammaTV</a>&nbsp;&mdash; over 500 bite-sized videos with more than 12 million views!</li>
<li>Website:<a href="http://www.sugarmammatv.com/">SugarMammaTV.com</a></li>
<li>Don&rsquo;t forget my other podcast:How Do They Afford That?&nbsp;👉&nbsp;<a href="https://podcasts.apple.com/au/podcast/how-do-they-afford-that/id1644255235">Listen here</a></li>
</ul>
⚖️ General Advice Warning
While we discuss financial topics, everything shared here is&nbsp;general information only&nbsp;&mdash; never personal, product, or investment advice. Always:
<ul>
<li>Do your own research.</li>
<li>Weigh up the pros, cons, fees, caps, taxes, and risks.</li>
<li>Seek professional advice before making financial decisions.</li>
</ul>
📜 Financial Planning License Details
The information in this podcast does not take into account your personal circumstances, goals, or needs. Always read relevant Product Disclosure Statements before acquiring any financial product, and seek independent financial advice where appropriate.
Canna Campbell is an&nbsp;Authorised Representative and Financial Adviser&nbsp;of Links Licensee Services Pty Ltd (AFSL No. 700012 | ABN 97 678 975 589).
&nbsp;
</blockquote>

Having been a Financial Planner for over 15 years, I have seen first hand how money problems can breed stress. Often, people make wrong money decisions because the world of finance can be intimidating and confusing. This podcast cuts through the jargon and provides practical, accessible financial education and empowerment - so you can build sustainable wealth and help achieve financial freedom. You will also hear real-life success stories from people who have transformed their finances and be empowered by valuable advice from industry experts. So join me for the start of a bold and brilliant financial future and growing community. For immediate access to all my content follow @SugarMammaTV@CannaCampbellofficial xCC

SugarMamma’s Fireplay

Why You Need to Check Your Loans URGENTLY! APRA’s New DTI Rules

https://api.omny.fm/orgs/2fb3740d-3436-44af-8cc0-a91900716aa5/clips/8a771a03-a479-4285-9470-b3ab0022ab39/transcript

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