Home loans for teachers and educators
Whether you’re a fulltime or casual teacher, one of our expert mortgage brokers is here to help!
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Home loan options for teachers and educators
If you’re a teacher or education professional looking to take out a home loan, it’s essential to understand the different types of home loans available to you:
Top 3 things for teachers to know about applying for a home loan
1
You could have your LMI waived
Teachers are one of several different professions typically regarded by lenders as relatively low risk, owing to their stable employment and consistent income. This means that teachers may be eligible for a waiver on some or all of their lenders mortgage insurance (LMI), with a saved home loan deposit as small as 5%.
2
Consider different forms of income
Depending on whether you’re a part-time teacher, primary school teacher, secondary school teacher or a university lecturer/tutor, your payslips may show additional earnings in the form of award-specific allowances or overtime income. If so, you may want to see if these can be factored in towards your borrowing capacity.
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A guide to home loans for teachers and educators
Updated 5 August 2025
Teacher home loans explained
How to apply for a home loan as a teacher
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.
What kinds of home loans can teachers get?
Teachers and educators are typically able to apply for the same types of home loans as any other eligible borrower, including:
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.
What home loan deals can teachers get?
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%.
How do I prove I’m a teacher or educator?
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.
Find out more about home loans
Lenders mortgage insurance for teachers and educators
Do teachers have to pay LMI?
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.
How can teachers avoid paying LMI?
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.
How much could LMI cost me as a teacher?
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:
| Deposit amount | |||
| Property value | 5% | 10% | 15% |
| $500,000 | $14,871.82 | $8,679.89 | $4,712.67 |
| $700,000 | $27,946.62 | $15,498.00 | $7,540.27 |
| $1,000,000 | $39,923.75 | $22,140.00 | $10,771.82 |
| Assumptions: Calculated via Helia’s LMI fee estimator. Assumes buyer is a first home buyer with a 30-year owner-occupied home loan. Fees subject to change, guide only. LMI costs can also vary by state. Assumes an upfront LMI premium. Excludes stamp duty. | |||
Meet our home loans expert, Stephen Zeller
Stephen has more than 30 years of experience in the financial services industry and holds a Certificate IV in Finance and Mortgage Broking. He’s also a member of both the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) and the Mortgage and Finance Association of Australia (MFAA).
Stephen leads our team of Mortgage Brokers, and reviews and contributes to Compare the Market’s banking-related content to ensure it’s as helpful and empowering as possible for our readers.