Home loans for teachers and educators

The home loan application process won’t vary too much among professions – applying for a home loan as a teacher or educator will involve the same steps that any other home loan applicant would go through.

However, some lenders may offer certain deals and discounts to certain professions, including teachers and educators. With this in mind, you may want to seek expert advice in order to find a lender that can help to maximise your borrowing prospects.

Our team of expert mortgage brokers are on-hand and ready to help you choose a lender best-placer to offer you value as a teacher looking for a suitable home loan product.

Teachers and educators are typically able to apply for the same types of home loans as any other eligible borrower, including:

• Fixed rate loans
• Variable rate loans
• Split rate loans
• Investment loans
• Construction loans.

Your eligibility for any given home loan product will be determined less by your profession, and more by things like:

• Your desired loan amount and loan term
• Your credit score and employment history
• Your ability to demonstrate a history of financial stability and genuine savings.

Depending on the specific lender, home loan product and the borrower’s financial circumstances, teachers and educators may be eligible for lower interest rates or even waived LMI on new home loans with a saved deposit of as little as 5%.

If you’re a teacher or educator hoping to receive a reduced interest rate or LMI waiver, you’ll typically need to prove that you’re a qualified and working teacher. You may also be required to show evidence of membership in a relevant industry body.

If you can’t do this, you may not be eligible to receive the home loan advantages offered to education professionals.

Lenders may offer to waive a teacher or educator’s payable lenders mortgage insurance (LMI) on home loans with a loan-to-value ratio (LVR) of 95% or less. This potential waiver means that teachers could secure an LMI-free home loan with a saved home loan deposit as small as 5%.

However, the more you manage to save up in the form of a home loan deposit, the less you’ll generally pay in ongoing weekly, fortnightly or monthly repayments. This reduction to your home loan repayments could significantly reduce your long-term home loan costs, even if it doesn’t end up affecting your upfront costs too much.

If you’re a teacher or educator applying for a home loan, depending on the lender you’ve chosen to work with, you may be eligible for an LMI-free home loan with a saved deposit as small as 5% and an LVR of 95% or less.

If you end up being ineligible for an LMI waiver as a teacher or educator, you’ll have to pay the full amount of required LMI on your home loan. Below are some example LMI amounts you may pay as a first home buyer based on different property values and deposit amounts: