Excerpt from the Age:
Education is now a standalone category of expense, and banks are largely determining that private school costs are not discretionary, according to Peter White, managing director of industry body the Finance Brokers Association of Australia.
“It is something that will have rather significant impacts in the [housing] market,” Mr White said.
“Parents will be thinking about whether they can afford to send their kids to a certain school.”
Mr White said that if school fees chewed up too much of a family’s post-tax income, they were being refused loans for an upgrade or an investment property, offered a reduced amount or told to save a higher deposit.
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