The major has announced policy to help those with student debt access funding for home loans.
The Commonwealth Bank of Australia (CBA) has introduced changes to how HECS-HELP debt is assessed, allowing better access to funding.
Coming into effect tomorrow (9 April), CBA will no longer consider HECS debt if it is due to be repaid within 12 months.
Further, borrowers with a HECS debt due to be repaid within the next five years will be assessed using only a 1 per cent serviceability buffer.
These changes come off the back APRA’s proposed changes to the handling of HELP and HECS debt and ASIC announcing guidance for lenders at the start of March.
Dr Michael Baumann, CBA’s executive general manager home buying…
