Federal Treasurer Jim Chalmers has directed both the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) to revise their approach to Higher Education Loan Program (HELP) debts when evaluating mortgage applications.
Under current responsible lending rules, lenders must assess student debt similarly to other debts like credit cards or personal loans, despite HELP repayments only being required when income exceeds certain thresholds.
“People with a HELP debt should be treated fairly when they want to buy a house, and we’re working with the regulators to make sure they are,” Mr Chalmers said.
The changes aim to remove barriers for first-home buyers whose…