If you’re a first home buyer or someone with a HECS-HELP debt, there’s good news. Some lenders have updated how they assess university loans – and it could mean you’re now eligible to borrow more than you thought.
At Borro, we’re committed to helping Australians access smarter lending solutions. We stay across lender policy changes so our clients don’t miss out on new opportunities.
Let’s break down what’s changed and how it could benefit you.
What’s Changed With HECS and Borrowing Capacity?
Until recently, most lenders treated HECS-HELP debt like any other liability. Even if repayments were small, it still reduced how much you could borrow.
But in 2025, some lenders have changed their approach. Now, they may:
Exclude HECS-HELP from borrowing capacity calculations altogether
Make accommodations to the assessment buffer (Reduce from 3% down to 1%)s to help you borrow more
The result? You may be able to borrow more, access better loan products, and get into the property market sooner – even if your HECS debt hasn’t been fully repaid.
Why This Matters for First Home Buyers
This change is especially helpful for first home buyers.
Many first-time buyers in their 20s and 30s have HECS debts of $20,000 or more. With these new policies, you could:
- Increase your borrowing capacity
- Access more competitive loan options
- Enter the market faster – without needing to pay off your uni debt first
- Qualify with a lower deposit or higher income threshold
At Borro, we recently helped a first home buyer increase their borrowing power by over $80,000 just by matching them with a HECS-friendly lender.
Do All Lenders Ignore HECS Now?
Not yet – but a growing number of banks are starting to update their policies.
Each lender has different credit rules, and some still count HECS in full. That’s why working with a broker who understands the differences is so important.
At Borro, we compare over 30 lenders and know exactly which ones offer the most flexibility for HECS debt. We look at:
Whether your HECS is counted
How it’s treated in your application
Which bank offers the highest borrowing limit for your situation
Need help with a HECS-aware lender? Get in touch with our team – it’s completely free to check your options.
How to Know if HECS Is Limiting You
Here are a few signs your HECS debt might be affecting your borrowing:
Your borrowing limit seems low, despite a good income
Your pre-approval includes a large deduction for HECS
You’ve recently come off a fixed term and haven’t reviewed your loan
You’ve only spoken with your own bank, not a broker
Even if you’ve been declined before, the outcome could be different today.
What to Do Next
If you’ve got a HECS-HELP debt and want to boost your borrowing power in 2025:
Don’t assume all banks assess the same way
Speak with a mortgage broker who understands current HECS policies
Get a tailored strategy based on your full financial picture
At Borro, we’re known for proactive service, smart strategy and putting our clients first. Whether you’re buying your first home, upgrading, or refinancing, we’ll help you get the most from your loan.
Don’t Let HECS Hold You Back
Changes to how banks assess HECS could give you a serious advantage – but only if you know which lenders to approach.
If you’re ready to explore your options, our brokers are here to help you move forward with confidence.
Offices in Newstead and Shailer Park – helping clients across Brisbane and Australia-wide
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