Matt Ewart - Prowest Financial Solutions

Does your HECS debt impact your ability to get a home loan?

It can, in that it impacts your borrowing capacity. Borrowing capacity, by the way, is essentially 'how much the bank is willing to lend you'.

Instead of lenders looking at the entire HECS debt though, as they would with a credit card or personal loan, they're more interested in how much you're having to repay each month.

This means the degree to which your HECS debt impacts your borrowing capacity depends more on your income than the overall size of the debt.

Think of it this way, it's your HECS debt repayments that make the difference. The banks are interested in this amount because it affects how much cash you'll have leftover to pay your mortgage.

Get in touch to find out how much you could borrow for your new home.

While you don't necessarily need a 20% deposit for your home loan, your savings will play a part in the lender's decision to approve your application...or not.

Being able to show you're able to save money proves to the banks you're disciplined with your finances, which is a trait they find very attractive.

Get in touch for help putting together a savings strategy you can stick to.

Thank you so much for your feedback, Kristiana! It was our absolute pleasure to help you.

"I had a wonderful experience with Matt. He was very attentive to my needs and answered every question big or small at anytime. I never felt unheard or lost and would highly recommend his services."