The Hon Jim Chalmers MP
Treasurer

The Hon Clare O'Neil MP
Minister for Housing
Minister for Homelessness

The Hon Jason Clare MP
Minister for Education

The Hon Stephen Jones MP
Assistant Treasurer
Minister for Financial Services

Financial regulators will update their guidance to make it easier for Australians with a HELP debt to responsibly take out a mortgage and buy a home, and also unlock the construction of more units, following a request from the Albanese Government.

We’re tackling this housing challenge from every possible angle.   

These are commonsense changes that will help more Australians into a home.  

I’ve agreed these changes in discussions with regulators and convened the banks to discuss them.

People with a HELP debt should be treated fairly when they want to buy a house and we’re working with the regulators to make sure they are.  

By unlocking more finance from the banks we’ll see more housing projects get off the ground more quickly.  

Currently, a barrier for young Australians to get into the housing market is the reluctance of banks to give them a mortgage.  

The ABA has indicated that one reason for this uncertainty is the interpretation of lending regulations and guidance by APRA and ASIC.

APRA has confirmed it will start consultation soon on the treatment of HELP debts in serviceability requirements and debt reporting.    

ASIC has confirmed it will move to quickly implement changes to its guidance on the treatment of HELP debts, following targeted consultation. 

The government has also asked APRA to update and clarify its regulatory guidance to help unlock the construction of more units.  

Some lenders have interpreted advice issued by APRA in 2017, that finance for construction of new unit blocks should depend on all properties being pre-sold. Lenders have indicated this is a barrier to financing.    

The interpretation of this guidance as “100% pre-sales" by some lenders has limited housing supply, as smaller developers often don’t have the capital to finance the start of construction without support from the banks.  

APRA has confirmed it will communicate to banks that while it expects banks to consider the extent of presales as part of prudent credit risk management, APRA does not expect 100% pre-sales.   

ASIC has confirmed it will move to quickly implement changes to its guidance on responsible lending laws.  

Helping more Australians into homes is one of the Albanese Government’s highest priorities.

This is all part of our comprehensive Homes for Australia plan which includes the biggest home building program of any government in history.  

Peter Dutton’s cuts to housing would mean fewer homes when Australia desperately needs more.  

As at 12 February 2025.