The Australian Prudential Regulation Authority (APRA) has announced long-expected changes to home loan lending rules to cool the property market. In a letter to lenders on Wednesday, APRA said they expect lenders to increase their serviceability buffer, which banks use to assess a borrowers’ ability to repay the loan, from 2.5 percent to 3 percent. APRA Chair Wayne Byres said the decision was to ensure the stability of the financial system, where banks lend to people who can afford the level of debt they’re incurring, both at present and into the future. “While the banking system is well capitalised and lending standards overall have held up, increases in the share of heavily indebted borrowers, and leverage in the household sector more broadly, mean that medium-term risks to financial stability are building,” Byres said in a statement. APRA previously found that over one-in-five newly approved loans in the June quarter were …