Banks will be told not to count HECS-HELP and other student loans in debt calculations for home loans, under a federal government push which could boost the borrowing power of some first homebuyers.
Updated guidance from financial regulators APRA and ASIC, made at the request of Treasurer Jim Chalmers, will also tell banks to disregard HELP repayments when assessing an applicant’s ability to service their mortgage.
Mr Chalmers said the clarifications were “common sense” and would “help more Australians into a home”.
“We’re tackling this housing challenge from every possible angle….
