Banks Told to Ignore Outstanding Student Loans When Providing Mortgage

Banks will be told to exclude the HECS debt from serviceability checks.

A woman and her dog walk past a real estate agents display in Melbourne, Australia on Aug. 6, 2024. William West/AFP via Getty Images

The Albanese government has directed financial regulators to update lending guidance, making it easier for Australians with Higher Education Loan Program (HELP) debt to secure home loans.

The move is also expected to unlock more financing for unit construction.