New APRA Deputy Chairs: What This Means for Your Mortgage

The Treasurer has appointed two new APRA deputy chairs as the banking regulator navigates capital reform and a volatile financial environment.

The Australian Prudential Regulation Authority is getting two new deputy chairs, with Treasurer Jim Chalmers recommending Therese McCarthy Hockey and David Bradbury for five-year terms. The appointments reshape how APRA divides oversight of Australia's financial system — and they arrive as the regulator works through significant reforms to bank capital and liquidity settings that will affect the mortgage market.

[Australian Broker](https://www.brokernews.com.au/news/breaking-news/apra-gets-two-new-deputy-chairs-as-board-reshapes-oversight-roles-289612.aspx) first reported the appointments, which follow the departure of Margaret Cole as APRA's outgoing deputy chair.

Who's Stepping In — And What They'll Oversee

Therese McCarthy Hockey takes the deputy chair role responsible for banking supervision, strategy, risk, and compliance. She is not a new face at APRA — she has been a member of the board since October 2022 and has worked within the regulator since 2018 in roles including chief risk officer and executive director of the banking division. Before joining APRA, she was Deutsche Bank's treasury deputy group head and global chief operating officer, based in London. She formally commences in the new role from 9 July.

Her banking remit is the one that matters most directly to mortgage borrowers. Banking supervision covers how APRA monitors the health and risk practices of Australia's authorised deposit-taking institutions — including every bank, credit union, and building society that offers home loans.

David Bradbury takes on the superannuation portfolio, stepping in from 1 September. He currently chairs the Board of Taxation and has previously held senior roles at the OECD and KPMG Australia, as well as serving as parliamentary secretary to the treasurer and assistant treasurer between 2010 and 2013.

Between now and Bradbury's start date, APRA Chair John Lonsdale will personally oversee the superannuation portfolio. Suzanne Smith remains responsible for general, life, and private health insurance — unchanged by the reshuffle.

Treasurer Chalmers said the pair were selected through a merit-based process: "These appointments bring the best available mix of strong leadership, experience and fresh thinking to the regulator. They arrive at a time of increasing scale and complexity in the financial system."

Why APRA's Leadership Matters to Home Loan Borrowers

APRA does not appear in your home loan comparison table, but its influence on your mortgage rate and borrowing capacity is substantial.

APRA sets the prudential standards that determine how much capital banks must hold against their loans — including their mortgage books. When capital requirements tighten, banks must hold more reserves for every dollar they lend. That cost typically flows through to borrowers in the form of higher rates, stricter product terms, or tighter credit policies.

APRA also determines serviceability standards — including the interest rate buffer that lenders must apply when assessing whether you can service a home loan. That buffer directly shapes your [borrowing power](/calculators/borrowing-power). When APRA adjusts that buffer, or changes how it applies to refinancers versus new borrowers, the effect hits loan applications immediately.

APRA Chair John Lonsdale acknowledged the weight of the environment the new team is stepping into: "We face a volatile external environment with risks arising across geopolitical, technological, operational and financial channels." APRA is currently navigating rising cybersecurity risk across the banking system, the ongoing integration of new technology into lender operations, and the longer-term effects of global financial tightening.

Capital and Liquidity Reform: What Borrowers Should Watch

The appointments come as APRA is working through a staged consultation on reforms to bank capital and liquidity settings — an active workstream noted by Australian Broker. This is worth understanding because the outcomes could affect how lenders price home loans and structure their products.

Capital and liquidity reform flows through to borrowers in practical ways. If banks are required to hold more capital against their loan books, product pricing tends to tighten as lenders seek to maintain their margins. If reforms create more flexibility in how capital is allocated across different loan types, it can open headroom for more competitive pricing in specific segments of the market.

For now, borrowers do not need to act on this directly. Capital reform consultations typically take years from initial consultation through to final rules and implementation. But the direction of reform, and who is overseeing the process, does matter over the medium term for anyone planning a purchase or [refinance](/home-loans/refinance).

What to Do Now

Leadership changes at APRA do not require you to take immediate action on your home loan. But they are a useful reminder that the regulatory environment is not static, and that the settings governing what you can borrow — and at what rate — can shift over time.

If you have not reviewed your rate in the past 12 months, now is a sensible time. Our [refinance savings calculator](/calculators/refinance-savings) can give you a quick read on what a rate improvement is worth over the life of your loan. And if you are planning a purchase and want to understand your current [borrowing power](/calculators/borrowing-power) under today's serviceability settings, speaking to a broker who monitors APRA policy closely is your best starting point.