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CBA Updates How It Assesses Student Debt (HECS/HELP) for Home & Investment Loans

April 14, 2025

CBA HELP debt assessment home loan changes are now officially in place—and they could make a big difference to your borrowing power. Commonwealth Bank (CBA), Australia’s largest lender, has introduced new ways to assess HELP (Higher Education Loan Program) debt when reviewing home and investment loan applications.

What’s Changed?

Effective 9 April, CBA will now offer two new ways to treat HELP debt in home loan assessments:

Option One

If you can repay your HELP debt in 12 months or less (based on your income and HELP deduction), CBA will exclude it entirely from your serviceability assessment.

Option Two

If you can repay your HELP debt in 1 to 5 years, CBA will still include the HELP repayments but apply a reduced serviceability buffer of 1% (instead of the standard 3%).

This makes it easier to qualify for a loan and could increase your borrowing capacity.

Why the Change?

This update comes after new guidance from ASIC and APRA, aiming to give borrowers with student debt more flexibility and improved access to finance.

Joint Applications – What If You’re Applying Together?

If two applicants qualify for different HELP debt options, CBA will use Option Two for both:

• HELP repayments will still be included
• A 1% assessment buffer will apply

Who’s Not Eligible for This Policy?

These new HELP servicing options do not apply to:

• Bridging loans
• Loans through companies or trusts
• Loans with “servicing” guarantors
• Applications requesting other servicing exceptions (e.g. REA, MLE, Commitment Apportioning)

What Do You Need to Provide?

To determine your eligibility, you’ll need to submit:

• Evidence of your current HELP debt balance – available through your MyGov portal or ATO documents
• Your broker or lender will then calculate whether you qualify for Option One or Two

How Much More Could You Borrow?

These changes could significantly increase your borrowing capacity, especially for first home buyers or borrowers with existing student loans.

Real-Life Scenarios

Scenario 1: Single Applicant

• $96,000 base income
• $22,000 HELP debt
• Qualifies for Option Two

Borrowing capacity increases by approx. $90,000

Scenario 2: Joint Applicants

• $180,000 combined base income
• $40,000 combined HELP debt
• Qualify for Option Two

Borrowing capacity increases by approx. $170,000

Want to See How This Impacts You?

These policy changes could be a game changer for your borrowing potential. If you’re unsure how your HELP debt affects your home loan options, we’re here to help.

Call us on 02 4288 8100 Or email admin@connected-finance.com.au

Let Connected Finance help you run the numbers and explore your best pathway to home ownership.