The good news is there’s some debt considered ‘better’ than the rest—and a student loan is a better debt to have compared to credit card debt or a personal loan.
However, banks still need to consider student loans as a financial commitment when calculating how much you can borrow—it’s best to start paying it back as soon as you can and factoring it into your budget if you’re planning to buy a home.
The banks deal with student loans every day—more than 730,000 New Zealanders have a combined student loan debt of $15.3 billion. However, it’s always best to work with a trusted mortgage broker when applying for a mortgage to get the best outcome for you.
Give us a call on 0800 000 517 if you’re considering buying a home for impartial, professional advice.