Medical Professionals Can Now Borrow More Thanks to New HELP Debt Guidance

If you’re a doctor with HELP debt, recent changes from the Australian Prudential Regulation Authority (APRA) could significantly improve your borrowing power by updating how lenders assess this type of debt. By recognising the unique way HELP debt works, these new guidelines may allow doctors to borrow more than before.

What Has Changed?

Previously, HELP debt was treated the same way as other debts during loan assessments. Lenders applied a standard servicing buffer that reduced borrowing capacity, regardless of how HELP repayments actually work. This approach often made it harder for doctors and other professionals with HELP debt to access competitive home loans.

The new guidance from APRA recognises that HELP debt repayments are income-contingent, pause when income drops, and are collected through the tax system. This means HELP debt behaves very differently to typical personal loans or credit card debts. Lenders are now encouraged to assess HELP debt more flexibly and realistically.

How Lenders Are Applying the New Guidance

Commonwealth Bank has already put these changes into practice as of 9 April 2025. Under their updated policy:

• HELP debt expected to be fully repaid within 12 months is excluded from the loan servicing calculations entirely.

• For HELP debt expected to be cleared within 2 to 5 years, only a reduced 1% servicing buffer is applied, compared to the usual 3% buffer on ongoing debts.

  
  

What This Means for Doctors

For medical professionals early in their careers who often carry HELP debt, this update could meaningfully increase borrowing capacity. For instance:

• A couple earning a combined income of $180,000 with HELP debt due to clear within five years could now borrow approximately $1.02 million, an increase of $180,000 compared to previous assessment methods.

• A single doctor with an income of $100,000 may see borrowing power increase by over $100,000.

These increases reflect a more accurate assessment of financial risk because HELP repayments are directly linked to income, and repayments pause if income falls below a certain threshold.

What’s Next?

While Commonwealth Bank is currently leading the way with this new approach, it is expected that other lenders will follow suit in the near future. The Finance Brokers Association of Australia supports this development and encourages broader adoption of APRA’s guidance across the industry.

How Clear Path Home Loans Can Help

If you are a medical professional with HELP debt, this is an excellent time to review your borrowing capacity. Understanding how these changes affect your loan options can help you make more informed decisions about purchasing property.

Clear Path Home Loans offers personalised advice and support tailored to medical professionals and others carrying HELP debt. We can help you navigate lender policies and identify the best home loan solutions for your circumstances.

Get in touch with our team today and take the next step toward securing your future home with confidence.