A major bank has increased the rate it uses to check potential borrowers can afford a loan.  

ANZ has upped its test rate to 9.1%.  

That's despite home loan rates sitting around 7% for a two-year fix.   

In past week ANZ and Westpac have raised interest rates. 

Squirrel Mortgages Chief Executive David Cunningham told Mike Hosking the test rate doesn't make much of a difference.  

He says the good news for first home buyers is that compared to two years ago, because property prices are lower, they can still afford the same amount based on the test rate. 

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• Major bank ups test rate, first in decades