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ABA welcomes further clarity on treatment of HELP debts

12 February 2025

The ABA welcomes the Federal Government’s move to have ASIC and APRA further clarify lending rules in relation to the treatment of HELP debts.

ABA CEO Anna Bligh said this was a constructive step and the potential to unlock more credit for prospective homebuyers could assist them in realising the dream of home ownership.

“Our industry welcomes this move and the clarity it will provide for banks when they are making lending assessments,” Ms Bligh said.

“Banks support responsible lending rules to protect borrowers and ensure they can repay their loans. However, there is always merit in carefully considered updates to regulatory guidance that may help some Australians safely access more credit.

“Whilst the challenges of reducing barriers to home ownership won’t be solved by one single factor, these clarifications should assist in unlocking more credit for some of those looking to enter the property market.

“We also welcome the clarification from APRA on lending rules in relation to pre-sold apartments. The ABA and our members stand ready to work with regulators on these updates.”

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