Your HECS Debt Doesn't Just Disappear When You Want a Mortgage
This might feel like a long way off if you're 17 and thinking about uni. But here's why it matters now: the HECS debt you take on today will affect how much a bank will lend you when you want to buy a home. Not in a hypothetical "one day" way. In a real, dollar-for-dollar way.
Understanding this upfront gives you the power to plan for it, not get blindsided by it.
How Banks Currently Treat HECS
When you apply for a home loan, banks look at your borrowing capacity, which is basically how much debt they think you can handle based on your income and existing commitments.
HECS-HELP repayments reduce your disposable income, which means banks factor them in. Even though HECS isn't a traditional loan with interest rates and monthly bills, the compulsory repayments still come out of your pay, so lenders treat them as an ongoing commitment.
HECS repayments can affect how much a lender thinks you can afford to borrow. Some lenders may treat them differently when your debt is close to being paid off.
What Changed in 2025
APRA clarified this flexibility in 2025. Its updated mortgage reporting rules began on 30 September 2025. Your lender's own assessment still matters.
What This Means for You Right Now
If you're still deciding whether to go to uni, or how much debt to take on, this is worth thinking about:
- A $25,000 HECS debt with a $70,000 salary means annual repayments of about $71, a relatively small impact on borrowing.
- The longer your debt takes to pay off, the longer it sits on your borrowing assessment as a liability.
None of this means "don't go to uni." It means go in with your eyes open and understand the downstream effects.
Model your specific scenario: Use the HECS Debt Calculator → to see how long your debt will take to repay based on your expected income, and when you'd be clear of it before applying for a home loan.
Where to Learn More
This guide summarises publicly available information. For the full details, go straight to the source:
- NAB: HECS and Home Loans
- Aussie: HECS Home Loan Changes 2025
- SBS News: How HECS Affects Borrowing Power
- APRA Guidance Updates
This guide is for educational purposes only. It is not financial, legal, or mortgage advice. Always speak to a licensed mortgage broker or financial adviser about your personal circumstances.