The federal government is attempting to make it easier for home buyers with HECS-HELP loans to secure a mortgage by relaxing rules on the treatment of student debts. This move aims to increase borrowing power, particularly for first home buyers.

Key points:

• Banks can now disregard HECS-HELP repayments when assessing home loan eligibility if the debt is due to be paid off in the "near term."
• APRA will also update lending rules for housing developers, clarifying that a block of units does not need to be fully sold off-the-plan to qualify for a loan.
• These changes are expected to help more housing projects get started and make it easier for Australians to purchase homes.
• The Coalition is considering similar proposals to relax lending rules, though they have not yet made any official policy decisions.

Developers should be aware of the updated guidelines, which could unlock more finance for housing projects. These changes could lead to faster project approvals and greater opportunities in the housing market.