HECS/HELP debt and your borrowing power
Last updated September 2026 · Back to the calculator
A HECS/HELP debt does not stop you getting a home loan. It does reduce how much you can borrow, because lenders treat the compulsory repayments as money you no longer have available for a mortgage. How much it costs you depends on your income and on the lender.
How lenders treat HELP debt
HELP repayments come out of your pay through the tax system once your income is above the repayment threshold. Lenders generally work out the repayment you would be making at your income and count it as an ongoing commitment. Some lenders use the repayment amount, others also look at the balance, and the way they treat it varies. That is one reason the same person can get quite different results from different lenders.
What changes the impact
- Your income. The repayment grows as your income rises, so a higher earner loses more borrowing power to the same debt.
- The size of the balance. A larger debt can mean a larger assumed repayment, and it can run for longer.
- Applying as a couple. Each partner's HELP debt is counted against their own income, then the results are combined.
- The lender. Some assess the repayment more gently than others, so it is worth comparing.
Should you pay it off before applying?
Not automatically. Paying the debt off can lift your borrowing power, but the money you spend doing it is money you no longer have for a deposit or buffer, and a smaller deposit can cost more through Lenders Mortgage Insurance or a higher rate. If you are close to the threshold, run both scenarios before you move any money. A voluntary payment does not necessarily count the same way with every lender, so check with a broker first.
Other things that stack with HECS
HELP debt is only one item lenders add up. Credit card limits, car loans and buy-now-pay-later reduce capacity too, and so do your living expenses. See how much a first home buyer can borrow for the full list. If you plan to use the 5% Deposit Scheme, the lender will still count your HELP repayments when it tests the larger loan.
Before you apply
- Check your current HELP balance and your repayment rate on the ATO website through myGov.
- Run an indicative estimate across several lenders (our calculator does this in about 60 seconds).
- Compare the result with and without paying some of the debt off, before moving any money.
- Talk to a mortgage broker about how each lender treats HELP debt before you apply.
How a broker helps, at no cost to you
- Finds the right lender. Compares lenders across their panel to find which will lend you the most, including those taking part in the 5% Deposit Scheme and Help to Buy.
- Handles the scheme. Checks your eligibility and the price cap, and applies for your scheme place through the lender.
- Gets you ready to bid. Sorts the paperwork and a pre-approval before you make an offer.
Who pays? Most mortgage brokers charge you nothing. The lender you choose pays the broker a commission when your loan settles. By law a broker must act in your best interests, not the lender's. We may receive a referral fee from the broker; it does not change what you pay.
This page is general information only, not credit or financial advice or a recommendation. HELP repayment thresholds and lender policies change; confirm the current rules with the ATO and a licensed broker.