- Nurses
- Updated
• 5 min read
Does HECS Affect Nurses Borrowing Power?
HECS debt is common among nurses who completed undergraduate or postgraduate nursing degrees. Because lenders include compulsory HECS repayments in their serviceability calculations, this debt can reduce how much a nurse is able to borrow.
Quick Answer
Yes. HECS reduces borrowing capacity because lenders include compulsory repayments as a committed expense. The impact varies by income level and lender policy.
How HECS Affects Serviceability For Nurses
The ATO calculates HECS repayments as a percentage of income above a threshold. For nurses earning between $50,000 and $100,000+, the repayment rate increases with income. Lenders include this repayment in their serviceability model, reducing the assessed amount available for home loan repayments.
What Lenders Look At
✓ Current HECS balance and estimated compulsory repayment
✓ Base salary, overtime and shift loading after HECS adjustment
✓ Total committed expenses including HECS
✓ Employment type — permanent, casual or agency
Strategies To Consider
✓ Compare lenders — serviceability models differ across the market
✓Understand your compulsory repayment rate before applying
✓ Consider whether paying down HECS before applying makes sense
Free Guide
Nurse Lending Guide
Frequently Asked Questions
Can nurses still get a home loan with HECS?
Yes. HECS debt does not disqualify a nurse from a home loan. It reduces assessed capacity, but many nurses with HECS borrow successfully.
Do all lenders treat HECS the same?
No. Serviceability models differ across lenders, which can mean different outcomes for the same application.
How HECS Specifically Affects Nurses
Nurses who completed undergraduate nursing degrees, postgraduate qualifications or nursing specialisations carry HECS debt that directly reduces assessed borrowing capacity. The higher the income, the higher the compulsory HECS repayment — and lenders include this in their serviceability model.
Example: Nurse Earning $85,000
At $85,000 income, the compulsory HECS repayment rate is approximately 7%. This means roughly $5,950 per year or $496 per month counted as a committed expense. Depending on lender and assessment rate, this can reduce borrowing capacity by $60,000–$90,000.
Example: Nurse Earning $110,000 (with overtime)
At $110,000 total income, the repayment rate rises to approximately 8.5%, giving a repayment of roughly $9,350 per year or $779 per month. The impact on borrowing capacity is larger — potentially $100,000–$140,000 reduction depending on the lender.
Example: Nurse Earning $85,000
✓ Two most recent payslips showing overtime and base income separately
✓Employment contract confirming overtime availability
✓Employer letter confirming that overtime is regular and ongoing
✓ Tax returns for the last one to two years
✓ HECS balance statement if applicable
Strategies For Nurses With HECS
✓ Compare lenders — serviceability models differ across the market
✓ Consider whether voluntary HECS repayment before applying is worth it
✓ Understand your repayment band — overtime income can push you into a higher rate
Common Mistakes
Can nurses still buy a home with HECS?
Yes. HECS reduces capacity but many nurses with HECS borrow successfully.
Does paying off HECS early help?
It can — but this depends on balance, interest rate and savings position. Review with a professional.
Understand Your HECS Impact
We compare lenders and assess how HECS affects your specific position.
General information only. Lending eligibility, LMI waiver policies, rates and approval outcomes vary by lender and are subject to assessment.
Review Your Borrowing Capacity
We We identify lenders that assess nurse income and HECS correctly.
General information only. Lending outcomes vary by lender and individual circumstances.
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Written by: Simpli Finance Lending Team · Reviewed by: [Broker Name], Mortgage Broker · Last updated: June 2026