Can You Buy a Home with HECS/HELP Debt in 2025? Yes—Here’s How
Still Paying Off Your Degree? Don’t Let That Stop You from Owning Property
You might remember those Uni days—sitting in the back row of the lecture theatre, chatting with mates, and not giving much thought to the growing HECS/HELP debt tallying up behind the scenes.
Fast forward to today, and you’re ready to buy a home. But there’s one question on your mind: Will my student debt hold me back from getting a home loan?
The short answer? Not necessarily. And in 2025, new lending policies are making it even easier for borrowers with student debt to get into the property market.
How HECS/HELP Debt Affects Your Home Loan Application
When applying for a mortgage, lenders assess your:
- Income
- Expenses
- Credit history
- Existing liabilities—including HECS/HELP debt
If you’re earning above the repayment threshold (currently $54,869), your employer withholds a percentage of your income to repay your student loan. This can reduce your net income, which in turn may affect your borrowing capacity.
But here’s the good news: 2025 lending changes mean your HECS/HELP debt may no longer be a major hurdle.
What’s Changed in 2025?
Thanks to updated guidance from ASIC and APRA, many lenders—including the big four banks—have introduced more flexible policies for assessing student debt:
- If your HECS/HELP balance is low or nearly repaid, some lenders may exclude it entirely from your serviceability assessment.
- Others may apply a reduced buffer (e.g. 1% instead of 3%) if your debt is expected to be repaid within 1–5 years.
- This could increase your borrowing power by $50,000 to $130,000, depending on your income and loan structure.
How a Mortgage Broker Can Help
At CBM Mortgages, we work with a wide panel of lenders—many of whom have adopted these new HECS-friendly policies.
Here’s how we support you:
- Conduct a comprehensive financial analysis
- Compare loan products across multiple lenders
- Offer guidance on debt consolidation or budget adjustments
- Help you understand how your HECS/HELP debt impacts your borrowing power
Want to see how we’ve helped others? Check out our case study on avoiding settlement penalties.
Don’t Let Student Debt Delay Your Property Goals
Whether you’re buying your first home or investing in property, your HECS/HELP debt doesn’t have to be a roadblock. With the right advice and lender, you could be closer to homeownership than you think.
Call us today on 02 8068 0534 or get in touch online to explore your options.
Further Reading:
- Go to our dedicated First Home Buyers page here
- Read our blog on the First Home Buyer scheme options here
- Read our blog on financing a small property here
- First Home Buyer Grants – Revenue NSW
Disclaimer:
The information provided in this article is for general guidance only and does not constitute financial or legal advice. It does not consider your personal circumstances. Before making any financial decisions, seek professional advice from a licensed mortgage broker or financial consultant. This content is protected by copyright laws and may not be modified, reproduced, or republished without prior written consent.
Written by Craig McDonald 15/06/2025
