NAB has announced a significant policy update that will boost borrowing power for first-home buyers with student debt, effective July 31.
Under the change, customers with HELP (Higher Education Loan Program) debt of $20,000 or less will no longer have that debt included in NAB’s borrowing assessment. This could allow eligible buyers to access larger loans and purchase homes sooner or in more competitive markets.
Matt Dawson (pictured), NAB executive for home ownership, said the change could remove a long-standing barrier for many aspiring home buyers.
“For too long HELP debt has been a roadblock for many Australians looking to buy a home,” Dawson said in a media release.
“NAB was pleased to advocate for this change last year which will allow more people to turn their homeownership dreams into reality, faster.
“From July 31, some HELP repayments won’t be part of NAB’s home lending assessment, so customers can hit the real estate market sooner.”
The move is expected to particularly benefit first-home buyers who have found their borrowing capacity constrained by student loan repayments – despite having stable incomes and strong savings.
“This change will make a real difference for first-home buyers especially,” Dawson said.
The policy change follows the federal government’s recent intervention to ease mortgage serviceability rules for borrowers with HELP debt. Treasurer Jim Chalmers said the reforms aim to create fairer access to home loans and help more Australians into homeownership.
While welcoming the change, NAB emphasised that addressing housing supply remains the larger structural challenge.
“It is critical to address both demand and supply-side measures together to help more Australians buy a home,” Dawson said. “There’s no simple fix, solving Australia’s housing challenges will take collaboration across the board.”
NAB lending data shows outer metro suburbs are now among the most in-demand housing markets in 2025, driven by affordability, infrastructure upgrades, and space. Melbourne’s Truganina ranked first nationally, followed by Roxburgh Park, Point Cook, Cranbourne East and Tarneit – all within Melbourne’s outer growth corridors.
NAB has helped more than 45,000 Australians buy their first home since 2020 under the federal government’s Home Guarantee Scheme – one of the bank’s key support channels for new buyers.
As of July 31, brokers working with first-home buyer clients holding low HELP balances may find their clients qualify for higher borrowing capacity than before.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
