Securing Your Mortgage with a Student Loan

Having a student loan shouldn't hold you back from purchasing a home. Turns out, they don't!


When it comes to securing a mortgage with a student loan, it's important to understand that banks perceive student debt differently than other types of loans.

Here at NZ Mortgages, a high percentage of our clients come to us with student loans, so we are used to dealing with them on a day-to-day basis.


Student loans are generally viewed more favorably by banks, considering them an investment in education, vital for career advancement. While including your student loan in your financial servicing calculations does impact your borrowing capacity, banks are less concerned about its size compared to other debts such as high credit card balances.

Although consolidating student loans within a mortgage is possible, it's often not recommended, particularly for interest-free loans, as it might not make financial sense. Banks prefer keeping student loans separate due to their interest-free nature and flexible repayment terms.

Despite student loans affecting affordability, their status as interest-free debts typically doesn't negatively influence mortgage applications, as they're seen as essential investments rather than detrimental liabilities. Get in contact with our team at NZ Mortgages today to ensure your homeownership plans don’t go astray.



Keywords: Mortgage with Student Loan, Financial Servicing, Debt Consolidation, Borrowing Capacity, Student Loan Impact, NZ Mortgages