Servicing test rate
The test rate is the higher interest rate banks use to assess whether you can afford a loan — typically 2–3 percentage points above actual rates.
You might borrow at 5.5% but be tested at ~8%: the buffer protects against rate rises, and it's why borrowing capacity feels far below what the actual repayments suggest. Test rates vary between banks, which is one reason a mortgage adviser who works across lenders can materially change what you can buy.
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