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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 a 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 was charged by the university every single day while you are doing the degree.

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. It makes 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 but tops out at 8 per cent when you earn over $101,900 annually.

Typically, this decreases your net annual income.

A mortgage broker can 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 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.

Disclaimer: We recommend that you seek independent financial and taxation advice before acting on any information in this newsletter. It contains general information only and has been prepared without considering your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. Interest rates are subject to change without notice. Lenders terms, conditions, fees & charges apply.

© Ace Broker. Credit Representative Number 498754 is authorised under Australian Credit Licence Number 389328.

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