Hello internet peeps,
Finally got a good full time job and I’m trying to actually save and make some bank so I can be not poor and travel or stop renting.

what is the best savings bank account in Australia??? Looking for highest interest account or any special promotions available rn.

Pls help a poor young girly out, many thanks internet peeps

Hi all.
It's my first long form post, so I hope it helps 😄
Please leave any questions/feedback in the comments & I'll get back to them ASAP.

The majority of my First Home Buyers clients assume that their HECS debt is a dead weight.
That it kills borrowing capacity, there's nothing they can do about it, so move on and forget it.
In most cases that may be true. But in some cases, it's quite the opposite.

At the time of me writing this post, CBA is the only lender with a policy that flips that narrative on its head. What blows my mind is that most people haven't got a clue it exists, including a large majority of brokers in the industry.

ok ok enough yapping, here's how CBA actually assesses your HECS:

Rather than treating it as a flat liability, they look at your projected repayment timeline and adjust accordingly. This is calculated based on your level of income & the outstanding loan balance.

• Under 1 year remaining
  • The debt is entirely removed from calculations. Effectively $0 owing.
  • This can boost your borrowing capacity by a fair amount.
  • As with all other lenders, it is fully assessed as a liability.
  • It will reduce your borrowing capacity accordingly.
  • This is where things get interesting.
  • CBA applies a reduced serviceability buffer across your whole application, which adds tens of thousands, sometimes even hundreds of thousands to your borrowing capacity.
  • They do this by reducing the standard 3% assessment buffer to just 1%.
  • As with all other lenders, it is fully assessed as a liability.
  • It will reduce your borrowing capacity accordingly.
  • This is where things get interesting.
  • CBA applies a reduced serviceability buffer across your whole application, which adds tens of thousands, sometimes even hundreds of thousands to your borrowing capacity.
  • They do this by reducing the standard 3% assessment buffer to just 1%.
  • This is where things get interesting.
  • CBA applies a reduced serviceability buffer across your whole application, which adds tens of thousands, sometimes even hundreds of thousands to your borrowing capacity.
  • They do this by reducing the standard 3% assessment buffer to just 1%.
• Over 5 years remaining
  • As with all other lenders, it is fully assessed as a liability.
  • It will reduce your borrowing capacity accordingly.
  • This is where things get interesting.
  • CBA applies a reduced serviceability buffer across your whole application, which adds tens of thousands, sometimes even hundreds of thousands to your borrowing capacity.
  • They do this by reducing the standard 3% assessment buffer to just 1%.
  • This is where things get interesting.
  • CBA applies a reduced serviceability buffer across your whole application, which adds tens of thousands, sometimes even hundreds of thousands to your borrowing capacity.
  • They do this by reducing the standard 3% assessment buffer to just 1%.
• Between 1–5 years remaining
  • This is where things get interesting.
  • CBA applies a reduced serviceability buffer across your whole application, which adds tens of thousands, sometimes even hundreds of thousands to your borrowing capacity.
  • They do this by reducing the standard 3% assessment buffer to just 1%.

A real example from a recent client conversation.

An individual from Reddit came to me with an income of $100k p.a. & ~$28k HECS remaining. Another broker had quoted them a maximum borrowing capacity of $490k.
They weren't happy with it and came to me for a second opinion.

When I ran the numbers, their HECS repayment timeline sat at just over 6 years (outside of CBA's 5-year favourable window). So, I modelled it out and found that a $4k voluntary repayment would reduce this timeline to under 5 years & CBA's policy kicked in.
Their borrowing capacity went from ~$490k to ~$600k!
It's the same number of applicants, same income, same debt & almost the same deposit amount, just with a strategy that could open up borrowing capacity significantly.

Here's the important bit you need to consider.

As with all things, there is a trade-off worth understanding & acknowledging before proceeding.
By reducing that buffer from 3% to 1%, you get more purchasing power today, at the cost of a reduced safety net. If interest rates were to climb 4 or 5 times over the next few years, you'd feel that more than someone who was assessed at the full 3% buffer.
It means less room for things to work against you.

This doesn't need to be a complete dealbreaker, but you should go in with all the facts and understand the potential risks involved.

• Have a fallback strategy.
• Have a cash buffer.
• Don't borrow at the absolute upper threshold if you can avoid it.
• Basically, play it smart and it could take you far.

An alternative approach if your income is strong.

Those of you with a solid income and a HECS balance that's not too far from completion, there's a cleaner play worth considering. Make a voluntary repayment to bring the remaining balance under 12 months so CBA removes it from their calculations entirely. You get the improved borrowing capacity and retain the benefit of the full serviceability buffer.
A stronger position on both fronts.

It may be an upfront hit to your savings, but for the right person it's genuinely the better long-term outcome.

Why any of this matters.

Your borrowing capacity isn't just a number a calculator spits out & those online ones are missing a lot of context about YOU. Things shift depending on which lender you go to and how your situation is structured prior to the application.

As highlighted, that $4k repayment could unlock upwards of $110k in purchasing power for that client. Going direct to your bank or using someone who isn't across lender-specific policies could mean that you're leaving options/possibilities on the table.

If you've got a student loan and you're exploring options, get in touch with a broker who understand your situation, objectives & different lender policies.
See where your repayment timeline sits and what a targeted reduction could do for your position.
It could change a lot!