How much does HECS reduce my borrowing?

On $100K income with $50K HECS: ~$7K/year repayment, reducing borrowing $90K-$120K.

Should I pay off HECS early before applying?

Usually no — HECS only payable while earning. Better to use cash as deposit.

Will HECS prevent me from getting a home loan entirely?

No — most graduates qualify. Capacity reduction manageable with two incomes.

Doctors with $200K HECS — can they still buy?

Yes — doctor incomes absorb HECS. Medical packages help.

My partner has HECS too. Combined impact?

Both HECS amounts reduce. Combined income typically still strong borrowing.

Home Loan Refinancing

Who this guide is for

Australian graduates and professionals with outstanding HECS/HELP debt wanting to know how it impacts home loan borrowing.

Recent graduates with $30K-$80K HECS debt
Healthcare professionals (doctors, dentists, vets) with $100K+ student debt
Mid-career professionals still paying down HECS
South Asian graduates wanting clear answers on HECS impact

The local picture

HECS/HELP repayments are calculated as a percentage of taxable income (1-10% depending on income tier). Lenders treat the annual HECS repayment as a debt commitment that reduces serviceability. Higher income = higher HECS repayment = more reduction.

How Mortgagefy helps locally

Mortgagefy models the actual borrowing impact of your specific HECS balance and income. We identify lenders that handle HECS most flexibly and explain whether paying down HECS early would help your application.

Free advice.

How it works — 4 simple steps

Free graduate chat

20-minute call about your HECS balance, income and target home.

Compare lender options

We identify lenders most flexible with HECS borrowers.

Application support

We document your income and HECS commitment properly.

Settle into your home

You move in with HECS still paying down.

Frequently asked questions

We use offer letters and vesting schedules to value RSUs conservatively. We present current vesting value + projected future vesting as a 3-5 year income average. This gives lenders confidence in your income stability while accounting for market volatility.

Both. We work with W2 employees, 1099 contractors, and consultants. For contractors, we use 2 years of tax returns plus business financials. We have lenders who specialise in contractor income—they understand the variability.

Unvested options have zero value for refinancing. We count only vested equity. If you have a 4-year vest, we use 25% of the grant value (what's vested) plus a conservative projection of future vesting.

If you've been in your new role 6+ months, most lenders will refinance. We'll use your offer letter plus 6 months of pay stubs. If less than 6 months, it's harder but possible with specialist lenders.

Yes, if you have 2+ years of bonus history. We average the past 2 years and present it conservatively. Some bonuses get counted at 50% to be conservative with variable compensation.

ESPP is counted as deferred compensation. If your company matches or you have a discount, we value it as part of total compensation package.

Talk to us about home loans with HECS

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Home Loan With Student Debt in Australia: How HECS/HELP Affects Your Borrowing