Another reason to can your Buy Now Pay Later accounts... if you ever needed one...

We've recently written about the impact of Buy Now Pay Later (BNPL) accounts on your lending prospects, recently APRA have mandated that these and any HECS/HELP/STSL debt MUST be considered in your overall debt to income (DTI) ratio calculation. Previously there were lenders who did not include this and therefore your overall position looked a little rosier. You'll now see the limits of these - as well as the repayments - squeeze your borrowing capacity down.

This will be a big issue for those who are under the repayment threshold for HECS but still carrying a debt.

And for all with BNPL facilities that were already misunderstood.