Assessment Rate
The higher rate lenders test you at — not what you actually pay.
What is Assessment Rate?
The assessment rate is the higher interest rate a lender uses to test whether you can afford your loan — usually your actual rate plus a 3% buffer required by APRA. If your rate is 6%, you're assessed at 9%.
Why it matters for you
Your borrowing capacity is calculated at the assessment rate, not your real rate — which is why most borrowers can afford more comfortably than lenders will approve. Different lenders apply different floors and buffers, so the same applicant can have very different borrowing capacity across lenders.