Serviceability buffer
nounser·vice·a·bil·i·ty buf·ferpronounced SER-vis-ə-BIL-ə-tee BUF-ər
Last reviewed 16 April 2026
What does the noun Serviceability buffer mean?
An additional margin (currently 3 percentage points) that lenders must add to the loan interest rate when assessing whether you can afford the repayments. If your loan rate is 6.0%, the bank must check you can afford repayments at 9.0%.
How the noun Serviceability buffer is used
Even though our rate was 6.0%, the bank tested us at 9.0% because of the serviceability buffer — that knocked about $80,000 off our borrowing power.
Synonyms
interest rate buffer, APRA buffer
Related words
Cite this entry
MLA citation: "Serviceability buffer." How to Property, 16 Apr. 2026, https://howtoproperty.com.au/definitions/serviceability-buffer. Accessed 30 May 2026.
Chicago citation: How to Property. "Serviceability buffer." Last modified April 16, 2026. https://howtoproperty.com.au/definitions/serviceability-buffer.
APA citation: How to Property. (2026, April 16). Serviceability buffer. https://howtoproperty.com.au/definitions/serviceability-buffer