HECS & Borrowing Power Calculator
Estimate how HELP repayments affect a home loan budget using 2026–27 repayment rules, a 3% assessment buffer and clearly stated assumptions.
How to use this calculator
Enter your gross annual income, your current HECS/HELP balance, and the interest rate you'd expect on a home loan. The calculator applies the official 2026–27 HELP repayment thresholds, estimates your tax, and shows how much you could borrow over a 30-year term with a 3 percentage point serviceability buffer applied. It also shows how much extra you'd be able to borrow if your HECS were paid off.
How it's calculated
HELP annual repayment = the lower of 10% of repayment income and 15% of income between $69,528 and $129,717, plus 17% of income above $129,717. Income below each threshold contributes zero. Repayment income is assumed to equal salary.
Modelled monthly income = (gross income − estimated resident income tax − HELP) ÷ 12. Medicare levy and tax offsets are excluded. Reviewed 14 October 2026.
Borrowing power = (income remaining after living expenses × selected budget share) ÷ monthly repayment factor, where the factor = r/12 × (1+r/12)360 ÷ ((1+r/12)360 − 1) and r = your rate + 3% APRA buffer.
Why HECS matters more than people realise
On repayment income of $90,000 with a $30,000 HELP balance, this model estimates a compulsory repayment of $3,070.80 for 2026–27. The model deducts the estimated repayment from available income. Ask the lender how it treats your remaining balance and any evidence of an imminent repayment; this calculator does not determine a lender’s exception or eligibility policy.
Does HECS reduce my borrowing power?
HELP repayments can reduce the income available for a mortgage. At $90,000 repayment income, the 2026–27 estimate is $3,070.80 annually before limiting it to the debt balance. Borrowing impact depends on lender policy and your other commitments.
Frequently asked questions
How does HECS reduce my borrowing power?
Lenders treat your compulsory HECS/HELP repayment as a fixed monthly commitment. That reduces your assessable net income, which in turn reduces how much you can borrow. The exact impact depends on your income bracket and the lender's policy.
What HECS thresholds are used here?
For 2026–27, the statutory calculation uses 15% of repayment income between $69,528 and $129,717, plus 17% of income above $129,717, capped at 10% of repayment income. We limit the estimate to your debt balance and assume repayment income equals gross salary.
What is the APRA serviceability buffer?
APRA requires authorised deposit-taking institutions to use a mortgage serviceability buffer of at least 3 percentage points, unless APRA determines otherwise. This scenario applies 3 points; individual lenders may assess your application differently.
Should I pay off HECS before applying for a home loan?
If your HECS balance is small and you're close to applying, paying it off can meaningfully boost your borrowing capacity. For larger balances, the maths is more nuanced — speak to a broker.
How is the HECS repayment calculated?
Repayments are marginal: 15% of income between $69,528 and $129,717, plus 17% of income above $129,717, limited to 10% of repayment income and the outstanding debt. The displayed rate is an effective rate, not a flat bracket rate.
How is borrowing power calculated?
We subtract monthly living expenses from estimated income after tax and HELP, then apply your selected repayment budget share (30% by default). We divide this budget by a 30-year repayment factor at your rate plus 3%. This is a Calcy scenario, not a lender approval or debt-to-income ratio.
Does this include tax?
We estimate annual resident income tax using 2026–27 brackets. Medicare levy, Medicare levy surcharge and tax offsets are excluded, so this is not a complete take-home-pay calculation.
Is this accurate?
It's an indicative estimate. Each lender treats HECS and living expenses differently. Confirm with a mortgage broker before relying on the figure.
Data sources
APRA Serviceability Buffer — APS 220 — reviewed 14 Oct 2026
RBA Cash Rate — Reserve Bank of Australia — 30 Sep 2026 (checked 14 Oct 2026)
StudyAssist — 2026–27 HELP thresholds — reviewed 14 Oct 2026
Higher Education Support Act — marginal repayment bands — reviewed 14 Oct 2026
General information and estimates, not personal financial advice. Check assumptions and official sources before making decisions.