I refer to an article from news.com.au which says a lady knew that HECS would affect servicing and that she asked a broker to check and claims that the broker did not provide the correct advice ” and she needed a higher deposit.
We don’t know what was discussed ” nor what paperwork was provided before advice was given ” and before she went to make an offer on a property. I think it’s safe to say no broker would normally make any claim of about possible borrowingcapacity without seeing 100% of the paperwork needed to lodge an application.
This includes income (payslips which would have noted HECS) ” deposit ” and all the lender policies around employment ” consumer debt ” property type ” lvr ” and includes a credit check. All this must be done in readiness to lodged an applicationfor pre-approval ” with formal approval based on valuation only ” anything else is crazy.
Her parents stepped in with the extra deposit ” so interested to know if family guarantee was offered ” as this would be required $0 deposit ” if she has the servicing.
PS – there are 98% loans ” where first homeowners ” can borrow 95% plus LMI (lenders mortgage insurance).
PPS ” 2.2% deposit + $10k buffer and you might qualify for 100% home loan.
HECS like any regular expenses reduces your net income and this borrowing capacity.
https://www.news.com.au/finance/real-estate/buying/gen-zer-reveals-how-her-hecs-debt-almost-shattered-her-real-estate-dreams/news-story/c347ae17368fcf5b27f4be90316e6372
