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Can a HECS-HELP debt affect your home loan application?

If a HECS-HELP loan got you through uni, you might be wondering, does uni debt affect the mortgage process? We’ll answer that, and other HECS-HELP debt questions you might have.

What is a HECS-HELP debt? And are HECS and HELP debts the same thing?

HECS-HELP is part of a Government scheme to help Aussie students through uni. HECS-HELP is the official name, but HECS and HELP are basically the same thing with HECS being the more commonly used phrase. HECS (Higher Education Contribution Scheme) covers the fees for things like lectures and tutorials, as well as student services and amenities fees (SSAF) for child-care, legal services, sporting and recreational activities.

How is HECS repaid?

Once you reach a certain income threshold, a HECS debt repayment rate will automatically be put in place and part of your wage will start being deducted. Even if you move overseas, you’ll still have to make repayments no matter the currency of the country you’re living in. This repayment threshold changes yearly, so if you’re wondering what the current rate is, click here. A quick online search for HECS debt news could also get you up to date with any recent changes.

How does HECS affect home loan applications? Andhow do lenders treat HECS debt?

Depending on the lender, a HECS debt could be treated the same as a regular debt. In saying that, it shouldn’t stop you from getting a home loan, it’s just something your lender will consider when figuring out your borrowing power. Before applying for a home loan, take a look at how much you still owe. It’ll make the process a lot easier when it comes time for your lender to look into your financial situation.

How do you find out your current HECS debt?

There are a few ways to find out how much you owe:

Getting that loan

Our home loan process is pretty smooth if you’ve got everything prepared. Once you’ve completed our online form, one of our Home Loan Specialists will give you a call to ask a few questions. Here we’ll chat about your income, expenses and existing debt. This convo will help us figure out if we’re a good match.


Other than that, happy house-hunting!


The information contained in this article is of a general nature only. It doesn’t take account of any person’s objectives, financial situation or needs. Before acting on this information, you should consider whether it is appropriate for your circumstances and seek independent legal, financial, and taxation advice.