The Real Estate Institute of Queensland (REIQ) is endorsing new federal reforms aimed at enhancing mortgage accessibility, particularly for young Australians carrying student loans and supporting small developers.
These reforms, spearheaded by Treasurer Jim Chalmers and backed by the Albanese government, are part of a broader initiative to improve housing affordability.
Recently announced changes by APRA and ASIC now allow banks to exclude HECS/HELP debts from mortgage serviceability assessments in certain scenarios, maintaining strict responsible lending protections.
Antonia Mercorella (pictured above), CEO of the REIQ, expressed strong support for these reforms.
“We support this reform, which will boost the borrowing capacity of Australians with student loan debt and trust that it will aid first-home buyers in taking that crucial first step on to the property ladder,” Mercorella said.
The government has specifically targeted Higher Education Loan Program (HELP) debts in its latest financial adjustments, simplifying the process for graduates seeking to own homes.
This adjustment follows extensive consultations with financial regulators and banks, reflecting a significant move towards more equitable lending practices.
Treasurer Jim Chalmers highlighted the importance of this focus.
These reforms are designed to remove significant barriers for first-home buyers, particularly those impacted by student debts.
“It’s a step in the right direction to help first-home buyers overcome the significant hurdles they face in today’s market and economy,” Mercorella said, highlighting the ongoing challenges in achieving homeownership.
While these reforms promise greater accessibility, REIQ advises future homeowners to remain cautious, especially with potential interest rate fluctuations.
“Even with a potential rate cut on the horizon, it’s essential for borrowers to approach home loans with caution,” Mercorella said, underscoring the importance of planning for long-term financial stability.
