Student loans can reduce your home loan borrowing power, but not in the way you may expect.
More than three million Australians have HECS university debts or similar government-supported study loans, with the average loan worth about $26,500.
But as home prices rise and saving for a home deposit gets harder, home buyers are looking at different ways to boost their borrowing power to get into the property market sooner, including weighing up whether to clear their student loans.
Mortgage Choice broker Larissa Barton said many home buyers had student debts, and they often worried about the size of their debts.
“The size of your HECS debt has no direct impact on your borrowing capacity, it’s actually the income that you’re…
