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A major bank has increased the rate it uses to check potential borrowers can afford a loan. \xa0

ANZ has upped its test rate to 9.1%. \xa0

That's despite home loan rates sitting around 7% for a two-year fix.\xa0 \xa0

In past week ANZ and Westpac have raised interest rates.\xa0

Squirrel Mortgages Chief Executive David Cunningham told Mike Hosking the test rate doesn't make much of a difference. \xa0

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.\xa0

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