The lending barrier
A first home buyer has a $45,000 HECS balance and less than 12 months of casual hospitality income. They want to explore a low-deposit purchase through the government guarantee scheme.
How we approached it
Check scheme eligibility, the applicable property price cap and participating lenders first. Compare how eligible lenders assess the documented employment history, casual earnings and compulsory HECS repayments. Use payslips and employment records to establish the income available for assessment.
The outcome
If scheme and lender requirements are met, the borrower could purchase with a 5% deposit and no lenders mortgage insurance (LMI). Cash for transaction costs and an adequate budget would still be needed.
What this means for borrowers
A HECS balance and casual employment are factors to assess together with scheme eligibility. Neither an advertised scheme nor an indicative borrowing figure is a loan approval.
Questions about this case
Can casual income and HECS debt be assessed together?
They need to be considered within the selected lender’s assessment. Documented income history, compulsory repayments, expenses and scheme eligibility determine whether a proposed purchase can proceed.
This is an illustrative scenario comparable to deals we have handled for our clients. Figures and outcomes are examples; lending remains subject to individual assessment.