Home Loans For Teachers – Compare The Best Lenders In Australia

If you are a teacher looking for a home loan, your profession may give you access to lending options that are not available to every borrower.

The biggest potential advantage is not necessarily a lower interest rate. It may be the ability to borrow with a smaller deposit while avoiding Lenders Mortgage Insurance (LMI).

However, lender policies differ significantly.

This guide compares home loans for teachers from banks, customer-owned banks and non-bank lenders, including low-deposit options, LMI waivers, government schemes and the types of teachers each lender may suit.

Key Takeaways

What matters	What teachers should know
10% deposit	Eligible Bank First applicants may borrow up to 90% without LMI, subject to conditions.
5% deposit	Eligible first-home buyers can also consider the Australian Government 5% Deposit Scheme through participating lenders.
Major banks	ANZ, NAB and CommBank publish professional LMI waivers, but their listed professions do not generally include teachers.
Non-bank alternative	Unloan offers home loans with a 10% deposit and no LMI, although a higher interest rate applies.
Casual teachers	Income assessment can vary between lenders, making lender policy particularly important.
Contract teachers	Contract length and employment history can affect how income is assessed.
Best lender	The best option depends on your deposit, employment type, property, income and overall borrowing position.

Home Loan Comparison For Teachers

Not every lender treats teachers in the same way.

Some lenders have specific education-sector policies, while others assess teachers under their standard home loan criteria.

The table below gives you a starting point for comparing the major options.

Lender	Teacher-specific policy	Low-deposit option	Who may suit it?
Bank First	Yes. Eligible education-sector first-home buyers can borrow up to 90% without LMI.	10% deposit for eligible applicants	Teachers wanting a lender with a specific education-sector benefit.
ANZ	No teacher-specific LMI waiver identified on its current professional waiver information.	Professional LMI waiver for eligible professions	Teachers who qualify under standard lending and want a major-bank option.
NAB	No teacher-specific LMI waiver listed.	Professional LMI waivers for eligible medical, legal and financial professionals	Teachers seeking a major bank with standard home lending.
CommBank	No teacher-specific LMI waiver listed.	Professional LMI waiver for selected professions	Teachers who prefer CommBank’s standard lending or another eligible low-deposit pathway.
Westpac	No teacher-specific waiver identified.	Professional LMI options for eligible occupations	Teachers who fit standard lending or another Westpac-supported scheme.
Unloan	No teacher-specific benefit	10% deposit with no LMI, subject to criteria; higher interest rate applies	Teachers who want a digital, low-deposit option and meet Unloan’s property and lending criteria.

Bank First: Best Known Teacher-Specific Option

Bank First is particularly relevant to teachers because its home loan offering directly recognises the education sector.

The lender states that eligible first-home buyers working in education or healthcare can borrow up to 90% of the property’s value without paying LMI. Loans above 80% LVR carry a higher interest rate.

The benefit is subject to conditions.

The property generally needs to be owner-occupied. Bank First also states that the waiver does not apply to off-the-plan or construction loans. Other restrictions can apply, including property and postcode requirements.

This makes Bank First particularly worth comparing if you are:

• A first-home buyer.
• Working in education.
• Holding around a 10% deposit.
• Buying an owner-occupied property.
• Looking to avoid LMI.

However, avoiding LMI does not automatically make the loan cheapest.

Bank First states that loans above 80% LVR under this offering have a higher interest rate.

You should therefore compare the total cost against a standard loan from another lender.

Read more: First home buyer loan – how it works in Australia

ANZ: Major Bank Alternative

ANZ currently advertises an LMI waiver for eligible professionals in legal, medical and accounting professions. Teachers are not included in the professions identified on its current professional LMI information.

For a teacher, this means you should approach ANZ based on its standard home loan lending rather than assuming your occupation automatically provides an LMI exemption.

ANZ states that borrowers generally need to pay LMI when borrowing above 80% of the property’s value, unless another applicable option or waiver is available.

ANZ may therefore be worth comparing if you have a larger deposit or your application fits its standard lending criteria particularly well.

NAB: Professional LMI Waivers Do Not Currently List Teachers

NAB publishes an LMI waiver for selected professionals.

Its current eligibility information lists medical, legal and financial professionals, including accountants, actuaries and financial analysts. Teachers are not included in that published list.

This is important if you are comparing lenders based on your occupation.

A teacher should not assume that NAB’s professional LMI waiver applies simply because teachers are also considered professionals.

NAB can still be considered for a standard home loan, but the comparison should focus on the loan’s rate, fees, features, borrowing assessment and LMI requirements.

CommBank: Professional LMI Waivers For Selected Occupations

CommBank also provides professional LMI waiver options.

Its official low-deposit home loan information specifically asks doctors, lawyers and accountants to speak with a Home Lending Specialist about professional LMI eligibility.

Teachers therefore should not assume that CommBank provides the same professional waiver based solely on being an educator.

CommBank may still be worth comparing if you qualify for another low-deposit option, a government scheme or its standard home lending.

Westpac: Compare Standard Lending And Eligible Schemes

Westpac currently provides LMI options for first-home buyers and selected professional occupations.

Its published professional LMI information identifies healthcare, emergency services and other eligible occupations. Teachers are not identified as a teacher-specific category.

Westpac also supports the Australian Government 5% Deposit Scheme for eligible first-home buyers, which can provide a route to purchasing with a 5% deposit without LMI.

For an eligible first-home buyer teacher, this government-backed option may therefore be more relevant than a professional LMI waiver.

Unloan: Non-Bank-Style Digital Alternative

Unloan is another option worth considering when comparing low-deposit home loans.

Unloan states that borrowers can buy a home with a 10% deposit and no LMI, although a higher interest rate applies.

Unloan is 100% owned and funded by CommBank and operates as a digital home loan provider.

It does not provide a teacher-specific benefit.

Instead, its appeal is the low-deposit structure.

Unloan states that some properties may have lower maximum LVRs depending on their location or type, so you need to check whether the property you want qualifies.

Unloan also does not participate in government grants or assistance schemes.

This makes it particularly important to compare Unloan against a participating lender if you are eligible for the Australian Government 5% Deposit Scheme.

Which Home Loan Is Best For A Teacher?

The best home loan depends on what you are trying to achieve.

Your situation	enders worth comparing first
Teacher with a 10% deposit	Bank First, Unloan and standard major-bank options
Teacher with a 5% deposit	Participating Australian Government 5% Deposit Scheme lenders
Teacher with a 20% deposit	Compare mainstream banks, Bank First and non-bank lenders on total cost
First-home buyer teacher	Bank First plus participating government-scheme lenders
Casual teacher	Compare lenders based on their treatment of casual income
Contract teacher	Compare employment and contract-income policies
Teacher buying a construction property	Check lender-specific restrictions before relying on a teacher LMI waiver
Teacher buying an investment property	Compare standard investment loans because teacher-specific owner-occupied benefits may not apply

The key point is that your occupation alone should not determine your lender.

Your deposit, property, employment structure and borrowing position can change which lender is most competitive.

Teacher Home Loan LMI Comparison

LMI is one of the biggest differences to investigate when comparing teacher home loans.

A borrower with a 10% deposit has an LVR of 90%.

With a standard home loan, LMI may apply.

However, Bank First states that eligible education-sector first-home buyers can borrow up to 90% without LMI.

Unloan also allows a 10% deposit without LMI, although it states that a higher interest rate applies.

A first-home buyer who qualifies for the Australian Government 5% Deposit Scheme may potentially borrow at up to 95% LVR without LMI through a participating lender. Westpac and Bank First both advertise participation in the scheme.

These are three different ways of addressing the same problem:

You want to buy before you have saved a 20% deposit.

The important question is which option produces the best overall outcome for your circumstances.

Read more: What is lenders mortgage insurance

Bank First Vs Unloan For Teachers

Bank First and Unloan are particularly interesting comparisons for a teacher with around a 10% deposit.

Feature	Bank First	Unloan
Teacher-specific benefit	Yes	No
10% deposit without LMI	Yes, for eligible education-sector first-home buyers	Yes, subject to criteria
Higher rate for low-deposit option	Yes	Yes
Government 5% Deposit Scheme	Yes	No
Teacher-focused offering	Yes	No
Digital application	Available	Core part of the offering
Property restrictions	Apply	Apply
Construction/off-the-plan	Teacher LMI waiver does not cover these	Check property-specific criteria

Bank First is more compelling if you qualify for its teacher-specific policy.

Unloan may be worth considering if you want a simple digital low-deposit loan and your property fits its criteria.

Major Banks Vs Teacher-Specific Lenders

A major bank is not automatically a better choice than a teacher-focused lender.

Likewise, a teacher-specific lender is not automatically cheaper.

For example, Bank First’s teacher offering can remove LMI at 90% LVR, but the lender states that loans above 80% LVR carry a higher interest rate.

A major bank might offer a lower rate but require LMI.

You therefore need to compare:

• Interest rate.
• Comparison rate.
• LMI.
• Upfront fees.
• Ongoing fees.
• Offset account.
• Redraw.
• Extra repayment rules.
• Maximum LVR.
• Income assessment.
• Property restrictions.
• Total cost over your expected loan period.

What About Non-Bank Lenders?

Non-bank lenders can be useful when your application does not fit neatly within mainstream bank criteria.

They may be worth investigating if you have:

• Casual teaching income.
• Contract income.
• Multiple income sources.
• A recent employment change.
• A non-standard property.
• A complex financial position.
• A need for a different credit policy.

However, non-bank does not automatically mean cheaper.

You should compare the actual loan cost and lending criteria rather than choosing a lender based on its category.

For a teacher with a straightforward PAYG application and a strong deposit, a mainstream bank may be more competitive.

For a teacher with a more complex application, a specialist or non-bank lender may provide an option that a major bank does not.

How Much Deposit Does A Teacher Need For A Mortgage?

Your required deposit depends on the lender and loan pathway.

A 20% deposit is commonly used as the benchmark for avoiding LMI under standard lending.

However, teachers may have other options.

These can include:

• A 5% deposit under an eligible government scheme.
• A 10% deposit under Bank First’s teacher LMI policy, where eligible.
• A higher-LVR non-bank loan.
• A family guarantee.
• A larger deposit combined with a standard home loan.

Your deposit also needs to cover other buying costs.

These may include stamp duty, conveyancing, inspections and other transaction costs.

Read more: calculate how many years it will take to save a house deposit

Read more: upfront costs calculator

Can A Teacher Buy A Home With A 5% Deposit?

Potentially.

Eligible first-home buyers can use the Australian Government 5% Deposit Scheme through participating lenders.

Bank First is currently a participating lender and markets the scheme directly to teachers.

The scheme can reduce the deposit required and avoid LMI for eligible borrowers.

However, you still need to meet the scheme’s eligibility requirements and the lender’s credit criteria.

A 5% deposit also does not mean you can buy any property at any price.

Property price caps and other scheme rules apply.

What If You Have A 10% Deposit?

A 10% deposit gives you more options.

You could compare:

1. A standard loan with LMI.
2. A lender-specific LMI waiver.
3. A government guarantee scheme.
4. A non-bank loan with a higher LVR.
5. A family guarantee.

For an eligible teacher buying a first home, Bank First is particularly relevant because its published policy allows borrowing up to 90% LVR without LMI, subject to conditions.

You should still compare the total loan cost and loan features.

Avoid choosing a loan simply because it removes LMI.

Can Teachers Get Home Loans If They Are Casual Or Temporary?

Potentially.

Lenders assess the stability and evidence of your income.

A permanent teacher may have a simpler application.

A casual, relief or temporary teacher may need stronger evidence of income history.

Your lender may consider factors such as:

• Length of employment.
• Previous employment history.
• Average income.
• Contract length.
• Regularity of work.
• Other income.
• Existing debts.
• Living expenses.

Non-bank lenders can sometimes provide alternative policies.

However, flexible lending does not mean automatic approval.

Can A Teacher Get A Home Loan During Probation?

Potentially.

Probation can affect a lender’s assessment because lenders want evidence that your income is sustainable.

Some lenders have specific policies for borrowers who have recently started employment.

Firstmac’s published broker information states that probation can be accepted under its lending policy.

This does not mean every teacher will qualify.

Your previous employment, income history and overall application can still matter.

Read more: Can I get a home loan if I just started a new job

What If You Have HECS-HELP Debt?

Having a HECS-HELP debt does not automatically prevent you from getting a home loan.

However, your HELP repayment obligations can affect your borrowing capacity.

Lenders assess your income and financial commitments when calculating how much you can afford to borrow.

The impact depends on your income and the lender’s serviceability assessment.

Therefore, teachers with HELP debt should compare borrowing capacity rather than assuming every lender will calculate it identically.

Read more: Can I get a home loan if I have student debt?

What Documents Do Teachers Need For A Home Loan?

A straightforward PAYG teacher application will usually require evidence of income and identity.

You may need documents such as:

Document	Why The Lender May Need It
Payslips	To verify your current employment income.
Employment contract	To confirm your role and employment conditions.
Bank statements	To assess savings, spending and existing commitments.
Identification	To verify your identity.
Existing loan statements	To confirm current debts and repayments.
Credit card statements	To assess existing credit limits and commitments.
Deposit evidence	To verify your available contribution.
Tax documents	May be required for additional or self-employed income.

The exact documents depend on your lender and circumstances.

How To Compare Teacher Home Loans

Do not compare lenders by interest rate alone.

Use the following checklist.

Comparison Factor	What To Check
LVR	How much can you borrow against the property?
LMI	Is LMI required at your deposit level?
Teacher eligibility	Does the lender have a genuine teacher-specific policy?
Government schemes	Does the lender participate in relevant schemes?
Employment policy	How does it treat permanent, temporary or casual teachers?
Income assessment	How does it treat allowances, overtime or additional income?
Credit policy	What happens if your credit history is not perfect?
Offset	Is an offset account available on the loan you want?
Redraw	Can you access eligible additional repayments?
Repayments	Can you choose weekly, fortnightly or monthly repayments?
Fees	Check application, ongoing, valuation and discharge costs.
Property restrictions	Check whether certain properties or locations are excluded.
Serviceability	Compare how much each lender is willing to lend.

The cheapest-looking loan may not be the best loan for your circumstances.

A lender that approves the right amount with suitable features can be more valuable than a lender with a lower advertised rate.

Most Common Mistakes Teachers Make

Choosing the right home loan involves more than comparing interest rates or finding a lender that advertises to teachers. These common mistakes can limit your options or lead you to choose a loan that does not suit your circumstances.

Mistake	Why It Matters
Assuming Every Lender Offers A Teacher LMI Waiver	Teacher-specific LMI policies are not available across the entire market. Bank First is one example of a lender with a specific education-sector policy, while other professional waivers may exclude teachers.
Choosing A Lender Because It Says “Professional”	A professional home loan does not automatically mean teachers qualify. Always check the lender’s actual eligible occupation list before relying on an LMI waiver.
Comparing Only The Big Four Banks	ANZ, NAB, CommBank and Westpac are major lenders, but they are not the entire Australian mortgage market. Non-bank lenders can offer different lending policies and assessment approaches.
Assuming A Non-Bank Is Only For Bad Credit	Non-bank lenders serve many types of borrowers, not just those with credit problems. Firstmac, for example, offers mainstream owner-occupier lending alongside policies designed for different income circumstances.
Focusing Only On The Deposit	A smaller deposit can help you buy sooner, but it is only one part of the comparison. You should also consider LMI, loan costs, serviceability, repayments and loan features.
Borrowing The Maximum Amount Available	Your maximum borrowing capacity is not necessarily a comfortable borrowing amount. Leave room in your budget for changing repayments, living costs and unexpected expenses

Conclusion

Finding a home loan as a teacher is not simply about finding a lender that advertises to educators.

The better approach is to compare the actual lending policies available to you.

Bank First stands out because it specifically targets teachers and offers an education-sector LMI waiver for eligible first-home buyers.

Major banks provide mainstream alternatives, while non-bank lenders can offer different policies for borrowers with more complex circumstances.

Before choosing a loan, compare your LVR, LMI position, borrowing capacity, employment policy, fees and loan features.

A lender that fits your circumstances can be more valuable than one that simply advertises the lowest rate.

Frequently Asked Questions About Teacher Home Loans

1. Do Teachers Get Special Home Loans?

Some lenders offer policies specifically for teachers or education workers.

Bank First is one example and publishes a teacher-focused home lending proposition.

2. Which Bank Is Best For Teachers?

Bank First is one of the most relevant lenders for teachers because it specifically targets educators and offers an education-sector LMI policy for eligible first-home buyers.

However, major banks and non-bank lenders should also be compared.

3. Can Teachers Get An LMI Waiver?

Yes, potentially.

Bank First offers a specific LMI waiver pathway for eligible first-home buyers working in education and healthcare.

Other professional LMI waivers may not include teachers.

4. Can A Teacher Buy A Home With A 5% Deposit?

Potentially.

Eligible first-home buyers can use the Australian Government 5% Deposit Scheme through participating lenders.

Bank First currently participates in the scheme.

5. Can Teachers Get A Home Loan With A 10% Deposit?

Yes, potentially.

Bank First states that eligible education-sector first-home buyers can borrow up to 90% LVR without LMI, subject to conditions.

Other lenders may also provide loans with a 10% deposit, although LMI or other conditions can apply.

6. Are Non-Bank Lenders Suitable For Teachers?

Yes.

Non-bank lenders can provide alternatives to major banks.

Firstmac, Resimac, Bluestone and Liberty all operate in the Australian home loan market.

Their lending policies differ, so compare eligibility, LVR, fees and features.

7. Can Casual Teachers Get Home Loans?

Potentially.

The lender will assess your employment history, income stability and overall financial position.

Some lenders may have more flexible policies than others.

8. Can Teachers With HECS-HELP Debt Get A Home Loan?

Yes.

HECS-HELP debt does not automatically prevent you from obtaining a home loan.

However, your repayment obligations can reduce your borrowing capacity.

Disclaimer. This article provides general information only and does not constitute personal financial advice. Home loan eligibility, lending policies, fees, LVR limits and government scheme requirements can change. Always check the current lender criteria and consider your own financial circumstances before applying for a home loan.