HECS Impact on Borrowing Power
See how your HECS-HELP student debt affects your home loan borrowing capacity.
Borrowing Power Impact Calculator
Enter your financial details to see your borrowing capacity with and without HECS
HECS-HELP and Home Loans
How HECS Affects Borrowing
Lenders treat HECS repayments as an ongoing liability when assessing your loan application. Your annual HECS repayment reduces the income available for mortgage repayments, directly impacting how much you can borrow. Each dollar of annual HECS repayment can reduce borrowing by A$5-7.
How Banks Assess HECS
- Calculate your HECS repayment at your income level
- Deduct this from your assessable income
- Apply serviceability buffer (usually 3%)
- Some lenders use higher income estimates
- Joint applications: both debts assessed
Should You Pay Off HECS First?
- Consider paying if: Close to property goal, small HECS balance
- Keep HECS if: Low balance, need deposit savings
- HECS is cheapest debt (CPI only, no interest)
- Compare: bigger deposit vs smaller HECS
- Consult a mortgage broker for your situation
Strategies to Maximise Borrowing
- Make voluntary HECS payments before applying
- Pay down other debts first (higher interest)
- Reduce credit card limits
- Apply with lender using lower HECS estimate
- Consider joint application with non-HECS partner