In a boost for first homebuyers, National Australia Bank will disregard student debt under $20,000 in assessing home loan applications.
NAB is the latest big bank to adjust its home lending rules around student debt.
From 31 July, NAB will ignore HELP debt of $20,000 or less in its home loan assessments.
It essentially means those carrying lower levels of student debt could see a boost to their borrowing power.
See also: Borrowing power calculator
NAB executive of home ownership Matt Dawson said the change will make a real difference to many first home buyers.
“For too long HELP debt has been a roadblock for many Australians looking to buy a home,” Mr Dawson said.
Big lenders get on board
NAB follows Commonwealth Bank of Australia…