Earlier today the Australian Prudential Regulation Authority (APRA) issued a letter to all authorised deposit-taking institutions (ADI) regarding consultation on revisions to prudential practice guide APG 223 residential mortgage lending. While that may not mean very much to readers specifically the letter relates to APRA’s requirement for lenders to assess a mortgage on the ability of the borrower to repay at a mortgage rate greater than 7%. By way of background, in December