The Reserve Bank has confirmed it will soon introduce debt-to-income ratios.
From July, most owner-occupiers can't borrow more than six times their pre-tax income and investors can't borrow more than seven times their income.
Reserve Bank Deputy Governor Christian Hawkesby says these restrictions have been a long time in the making.
"What it's really about is filling a gap in the tools that we need to live up to our responsibility of avoiding boom-bust cycles in lending and house prices."
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