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Buying a house when you have a HECS or HELP debt


Paying off your education is no reason to put off buying property and applying for a home loan. You can remember it now: sitting in a chair at the back of the lecture theatre, chatting to your friends and ignoring the debt that each day at university was plunging you into. But now you’re older and wiser, and reality has set in. You want to take out a mortgage to buy a property, but you’re unsure how your student HECS or HELP debt could impact your ability to take out a loan.

Applying for a home loan

When you apply for a home loan, you’ll need to reveal information about your liabilities, poor credit ratings and any other personal debts you have. This is where you need to start worrying about your student loan. If you chose to defer any of your HECS/HELP payment, you don’t need to start paying it off until you’re earning an annual taxable income over the threshold. Current repayment thresholds can be found on the ATO website. At this point your employer is required to hold a percentage of your taxable income and direct it towards your HECS/HELP loan. Essentially, this decreases your net annual income.

At Preston Finance, we can help you deal with the impact of your student debt on your mortgage application. We can compare several lenders at one time and we can look at different home loan types, and interest rates.  This way we can recommend the best home loan to suit your needs and your situation.  We usually start off by running a comprehensive financial analysis.  From there, we can offer guidance and advice on consolidating debt and reducing outgoings so that your borrowing capacity can be increased.

Get advice

If you’re getting ready to buy a property for investment or to live in, there’s no need to hold out because you’re still paying for your education. Find out more from us at Preston Finance in Cairns.


Preston Finance

1/15 Spence St


07 4052 0750

By Lauren Eakins

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