Preparing financially
How a HELP/HECS debt affects your home loan
An outstanding study loan is treated as an existing debt in most serviceability assessments — what that means for borrowing capacity.
- A HELP debt is generally counted as an existing liability, reducing borrowing capacity.
- Compulsory repayments begin above an annual income threshold, reviewed each financial year.
- Always disclose a HELP debt to your lender — it's generally counted regardless.
HELP debt as an existing liability
An outstanding HELP (HECS-HELP or other Commonwealth study loan) debt is generally treated as an existing liability in a lender's serviceability assessment, reducing borrowing capacity, even though it doesn't accrue interest in the way a personal loan does.
Compulsory repayment thresholds
Compulsory HELP repayments begin once your income passes a threshold set each financial year, and — commonly reported for 2026-27, though Delora has not independently verified this figure against a primary ATO source — that threshold is around $69,528, with a marginal repayment system applying above it rather than a flat percentage of total income. Confirm the exact current threshold and rate directly at ato.gov.au or studyassist.gov.au before relying on a specific figure.
Practical checklist
Before applying with a HELP debt
- Check your current HELP balance via the ATO or myGov
- Confirm the current compulsory repayment threshold at ato.gov.au before budgeting around it
- Disclose the debt to your lender or broker upfront
Questions for a professional
- How exactly does my HELP debt affect the amount you'll lend me?
- Would paying down my HELP debt before applying change my borrowing capacity?