She's On The Money How Much Does HECS Really Affect Your Borrowing Capacity? And Handling Your Parents Bad Financial Decisions
Sep 25, 2025
Is HECS really the enemy of your borrowing capacity? The hosts break down the surprising truth about how it affects loans and whether to prioritize paying it down or saving for a deposit. They also tackle the awkward family drama of dealing with parents making poor financial choices, offering helpful strategies. Plus, enjoy money-saving tips from the community and real-life financial wins that inspire. Tune in for relatable conversations that mix finance with comedy!
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Prioritise Deposit Over Full HECS Repayment
- Prioritise building your deposit if paying HECS reduces your cash buffer and delays saving enough to avoid LMI.
- Use a broker to model scenarios so you know which option (repay HECS or save) increases your purchase power.
Check With A Broker Before Paying HECS
- Talk to a mortgage broker before paying off HECS because lenders treat HECS as a repayment, not a ruinous debt.
- Keep cash savings instead of fully extinguishing HECS to improve borrowing capacity and avoid unnecessary LMI.
Remove Bad Debt Not HECS First
- Close unused credit lines and small-limit credit cards before applying for a mortgage to improve lender impressions.
- Focus on removing 'bad debt' like lines of credit rather than paying off HECS first.