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NAB customers with outstanding student debt will be able to enter the property market or buy a new home sooner under a major change.
From 31 July, NAB will make it easier for some customers to obtain a home loan with a HELP (Higher Education Loan Program) debt of up to $20,000 or less.
The bank said the change is especially designed to enable first home buyers to get into the property market, making HELP debt less of a barricade.
NAB executive for home ownership Matt Dawson said for too long, student debt has been a roadblock for many Australians wanting to buy a home.
“NAB was pleased to advocate for this change last year which will allow more people to turn their home ownership dreams into reality, faster,” he said.
“From 31 July, some HELP repayments won’t be part of NAB’s home lending assessment, so customers can hit the real estate market sooner.”
NAB’s announcement comes after the Australian Prudential Regulation Authority (APRA) finalised changes to how banks treat HELP debt when assessing home loan applications.
From 30 September, lenders are expected to no longer consider HELP debt when servicing mortgages if the repayments are expected to be complete within 12 months.
Although NAB welcomed the changes by the regulator, Dawson said housing supply is still the biggest obstacle for home buyers.
“It is critical to address both demand and supply-side measures together to help more Australians buy a home,” he said.
“There’s no simple fix; solving Australia’s housing challenges will take collaboration across the board.”
“If you’re thinking about buying a home, chat with a NAB banker today,” he concluded.
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