If you have a HECS or HELP debt and you're thinking about buying your first home, there’s some good news. Recent changes to how HECS-HELP is treated by lenders could make it easier to qualify for a home loan—and potentially boost your borrowing power.
What’s Changed?
Previously, lenders treated HECS-HELP debts like any other loan. That meant your student debt counted toward your overall liabilities, reducing how much you could borrow—even if you weren’t currently making repayments because you were under the income threshold.
Now, under new guidelines introduced in early 2025, lenders have more flexibility in how they assess HECS-HELP debts:
HECS-HELP may no longer count toward debt-to-income ratios, especially if the debt is relatively low or close to being repaid.
If you're earning below the repayment threshold, lenders may choose not to factor your HECS repayments into your loan serviceability calculations.
The income threshold for making compulsory repayments has also increased, giving lower-income earners more breathing room.
Why This Matters
For many first home buyers, these changes could translate to thousands—or even tens of thousands—more in borrowing capacity. For example, someone earning around $100,000 with a moderate HECS-HELP debt could see their borrowing power increase by more than $50,000, depending on the lender’s assessment.
What Should You Do?
If you’ve been holding off on applying for a home loan because of your student debt, it might be time to revisit your options. Every lender assesses things a little differently, and working with a mortgage broker can help you find the right fit.
At Integrity Finance Australia, we stay across policy updates like this so you don’t have to. If you’d like to know how these changes might impact your borrowing power, we’re just a phone call or message away.