From 31 July, NAB will disregard student debts when assessing home loan applicants if the outstanding amount is $20,000 or less.
Beneficiaries could see the amount they can borrow increase, with their income no longer assessed including compulsory student loan deductions.
NAB Executive for Home Ownership Matt Dawson says the change will allow more people to buy a home sooner than they otherwise would have.
“For too long HELP debt has been a roadblock for many Australians looking to buy a home,” he said.
NAB is the second of the big four to relax how student loans are assessed after Commonwealth Bank announced earlier in the year it will no longer consider a borrowers student debt if it is due to be fully repaid within a year.
CommBank…