Australia reviews lending rules to help first-time home buyers with student debts.

Australian Treasurer Jim Chalmers has initiated a review to ease lending rules, particularly for first-time home buyers with HECS (Higher Education Contribution Scheme) debts. Current regulations treat student loans like other debts, limiting borrowing capacity. The review, supported by financial regulators APRA and ASIC, aims to exclude HECS repayments from serviceability assessments if debts are soon to be paid off, potentially boosting mortgage eligibility for millions of borrowers. Additionally, the review seeks to improve financing for builders to tackle housing supply and affordability issues.

5 weeks ago
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