How to buy a house when you have a HECS or HELP debt?

There is no reason to put off a great opportunity in buying property because you have a HECS or HELP debt.

You can remember some years ago, you were sitting on a chair at the back of the lecture room, talking with your friends and ignoring the debt that each day at university was plunging you into.

But now you’re ready to buy a property but you’re unsure how is your student HECS or HELP debt could impact your ability to take out a loan.

When you apply for a home loan, you will need to reveal information about your current liabilities, your credit ratings and any other debts you have. This is where you start to worry about your student debt.

If you chose to defer any of your HECS or HELP payment, you don’t need to start paying it off until you’re earning an annual taxable income of $54,869 or more.

At this point, your employer is required to hold a percentage of your taxable income and direct it towards your HECS or HELP loan. The percentage increases with your income but tops out at 8 percent when you earn over $101,900 annually.

Typically, this decreases your net annual income.

A mortgage broker has the ability to compare several lenders product at the one time and promptly find out and recommend a product suitable for the applicant current needs.

During the initial contact with the applicant, a mortgage broker will always be going through a fact find with the applicant, that enabling a comprehensive financial analysis to be conducted.

From there, guidance can be given on paying down or consolidating debt to reduce outgoings and increase borrowing capacity. If you’re getting ready to buy a property for investment or to live in, there’s no need to hold out because you’re still paying for your education. Come to speak to Kevin today on 0415820016 , he will guide you through the process of getting a pre-approval for your next property purchase.