Borrowing Power on $100,000 With HECS Debt
How much you can borrow on a $100,000 salary when you have HECS-HELP debt. See how compulsory repayments reduce your capacity.
Last verified: 1 July 2025On $100,000 with HECS debt, you could borrow approximately $287,173
Based on 9.25% assessment rate (6.25% + 3% buffer) and 30% serviceability ratio over 30 years.
HECS repayment of $5,500/year (5.5% rate) deducted from income before assessment. Without HECS, borrowing power would be $303,887 — a reduction of $16,714.
Monthly repayment
$1,768.17
at 6.25% over 30 years
Fortnightly repayment
$816.08
at 6.25% over 30 years
Weekly repayment
$408.04
at 6.25% over 30 years
What $287,173 Buys You
How your $287,173 borrowing power compares to median house prices across Australian capital cities (with a 20% deposit).
| City | Median | Loan needed (80%) | Affordable? |
|---|---|---|---|
| Sydney | $1,150,000 | $920,000 | Short $632,827 |
| Melbourne | $800,000 | $640,000 | Short $352,827 |
| Brisbane | $780,000 | $624,000 | Short $336,827 |
| Perth | $700,000 | $560,000 | Short $272,827 |
| Adelaide | $720,000 | $576,000 | Short $288,827 |
| Hobart | $650,000 | $520,000 | Short $232,827 |
| Canberra | $850,000 | $680,000 | Short $392,827 |
| Darwin | $500,000 | $400,000 | Short $112,827 |
Median prices are approximate mid-2025 figures. Actual prices vary by suburb.
Deposit Needed
How much deposit you need for different property values with $287,173 borrowing power.
| Deposit % | Max property | Deposit | Est. LMI |
|---|---|---|---|
| 5% | $302,287 | $15,114 | $11,487 |
| 10% | $319,081 | $31,908 | $5,169 |
| 20%(no LMI) | $358,966 | $71,793 | $0 |
LMI estimates are approximate. Actual LMI varies by lender, loan amount, and LVR.
Monthly Repayments at Current Rates
| Rate | Monthly | Fortnightly | vs 6.25% |
|---|---|---|---|
| 5.5% | $1,630.54 | $752.55 | -$137.64/mo |
| 6% | $1,721.75 | $794.65 | -$46.43/mo |
| 6.25%(current) | $1,768.17 | $816.08 | — |
| 6.5% | $1,815.13 | $837.75 | +$46.96/mo |
| 7% | $1,910.57 | $881.80 | +$142.40/mo |
| 7.5% | $2,007.95 | $926.75 | +$239.78/mo |
What Reduces Your Borrowing Power
Credit card ($10K limit)
Banks assume 3% of your credit limit as a monthly commitment, even if paid in full
-$36,466
Car loan ($500/month)
Existing debt repayments directly reduce serviceability
-$60,777
Each dependant
Banks add ~$400/month per dependant to living expenses
-$48,622
How to Increase Your Borrowing Power
- Pay off debts first — closing a $10K credit card could add $36,466 to your borrowing power
- Save a bigger deposit — a 20% deposit avoids LMI (saving $11,487) and shows lenders you're a lower risk
- Longer loan term — a 35-year term increases borrowing power to approximately $294,303 ($7,130 more)
- Add a co-borrower — combining incomes significantly increases capacity
- Reduce living expenses — lower declared expenses mean more income available for repayments
- Pay off HECS voluntarily — removing the $5,500/year repayment would add $16,714 to your borrowing power
Lenders Mortgage Insurance (LMI)
LMI is required when your deposit is less than 20% of the property value. Here's what you'd pay on a $287,173 loan:
5% deposit (95% LVR)
$11,487
on $302,287 property
10% deposit (90% LVR)
$5,169
on $319,081 property
15% deposit (85% LVR)
$2,297
on $337,850 property
LMI can often be added to the loan (capitalised), but this increases your total debt. First home buyers may be eligible for the First Home Guarantee which allows a 5% deposit with no LMI.
Frequently Asked Questions
How much can I borrow on $100,000 with HECS?
On $100,000 with a HECS-HELP debt, your borrowing power is approximately $287,173. The compulsory HECS repayment of $5,500/year (5.5% of income) reduces your borrowing capacity by approximately $16,714 compared to someone without HECS.
Does HECS affect borrowing power?
Yes. Banks deduct your compulsory HECS repayment from your income before calculating serviceability. On $100,000, your HECS repayment of $5,500/year reduces your effective income to $94,500, lowering your maximum loan by approximately $16,714.
Should I pay off HECS before buying a house?
Paying off HECS before buying would increase your borrowing power by approximately $16,714. However, HECS is indexed at CPI (not a real interest rate), so the money might be better used as a larger deposit to avoid LMI. It depends on your deposit savings and the property you're targeting.
Other HECS Salaries
Compare Scenarios
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General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.
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