‘BNPL’ and ‘higher ed’ costs now a debt, as home mortgage lending tightens

Banks now need to include buy-now, pay-later and higher education debts when reporting debt-to-income ratios, and with an increase in the cash rate, it’s another blow to first home buyers. Matt Gatt, General Manager of Home Loans at Compare Club, says the change, highlights what a grey area it’s been. Some banks, he says, have already included BNPL as an ongoing debt, while others have treated it as an expense, which has been confusing for people when it comes to purchasing a house and getting mortgage approval.