HECS Debt and Home Loans in Australia — What You Need to Know
HECS-HELP debt is one of the most common financial considerations for under-35 Australian home buyers. It does not prevent you from getting a home loan — but it does reduce how much you can borrow.
Articles in This Section
- Does HECS Debt Affect My Home Loan Borrowing Power?
- Can I Get a Home Loan With HECS Debt?
- How HECS Repayments Reduce Your Borrowing Capacity
- Should I Pay Off HECS Before Applying for a Mortgage?
- HECS vs Saving for a House Deposit — Which Should Come First?
- Home Loans for Graduates With Student Debt
- HECS and Joint Home Loans — How It Affects Borrowing as a Couple
- HECS, HELP, VET-FEE — Which Student Debts Affect Borrowing?
The Key Facts
- HECS does not appear on your credit file — it does not affect your credit score
- HECS repayments do appear in your tax return — and lenders see them as a committed expense
- Lenders reduce your borrowing capacity based on your compulsory HECS repayment threshold
- Paying off HECS early is optional — there is no interest charged on HECS (indexed to CPI only)
- All types of HELP debt (HECS-HELP, FEE-HELP, VET Student Loans) affect borrowing the same way
Related Guides
- How Much Can I Borrow for a Home Loan in Australia?
- Loan Assessment Criteria — How Lenders Assess You
- Mortgage and Home Loan Hub
This section provides general information about HECS debt and home loans in Australia. For advice specific to your situation, speak with a licensed mortgage broker. Find one through MoneySmart.