There’s no denying that teachers are responsible for helping to shape the future of Australia, but when it comes to owning a home, there are often obstacles that can be difficult to navigate.
Here, we’re going to explore the home loan options and potential incentives for teachers, helping you access the property market and get approved for the right home loan for you.
Many teachers aren’t aware that there are some discounts and incentives you may be able to access that can help you save thousands. Some lenders may offer rate reductions, others may offer Lenders Mortgage Insurance incentives or waivers.
Lenders Mortgage Insurance (LMI), which is a policy taken out by your chosen lender to protect them should you default on your loan, ultimately insuring them against financial loss. In usual circumstances, LMI is waived by lenders if you have a deposit that is at least 20% of the property value. However, for teachers, an LMI waiver can potentially be applied to deposits of just 15%. This can save you thousands in potential LMI premiums.
The reason for this is pretty simple: Teaching offers good job security once you’re past the training stage. This makes you a more attractive applicant to some lenders. To find out if you qualify, get in touch with an expert mortgage broker.
But what if you have a deposit less than 15%? Well, there may still be lending options available to you- some lenders are willing to approve home loans for teachers under the various Home Guarantee schemes with as little as a 5% deposit. Chat to our expert mortgage broker to find out more.
So, you know that you’re able to save a great deal of money on home loans for teachers with an LMI waiver. But what are your different loan options?
One important thing to keep in mind when considering any of these loans for teachers is to ensure that the product chosen is suited to your financial situation, long-term goals and preferences.
Compare home loans from different lenders and seek expert advice from Simplifi Lending, who can help you find the most suitable loan product for your needs.
Not all lenders offer incentives for homes loans for teachers. An initial assessment is required to ensure you qualify for these incentives with a lender who is likely to approve your application.
As specialist mortgage brokers, Simplifi Lending understands the unique circumstances of teachers in Australia, and we’ll offer expert guidance on finding the right home loan for your individual needs. With our dedicated support and expertise, we’ll guide you through every stage of the process, from application to settlement, ensuring transparency and efficiency throughout.
Over the years, we have helped hundreds of teachers secure loans for their homes, whether first home buyers or switching deals. Contact us now to discuss your options, and let Simplifi Lending help you get the right home loan deal.
As with any type of loan, there is a list of eligibility criteria that you’ll need to meet if you want to access incentives available for home loans for teachers:
Ideally, you’ll have been working in your full time position for a good amount of time before applying for your home loan, but you can still apply as long as you’ve been in your role for more than three months and have completed your probationary period.
However, to potentially receive an LMI waiver or reduction, you’ll have to be permanently employed in one of the following specific roles:
As well as stable employment, you’ll need to prove that you have a stable income to be considered for a home loan. This isn’t as simple as how much money you earn each month, though. Lenders will also look at bank statements and your expenditures to determine whether you have enough financial capacity to cover your bills and lifestyle as well as your home loan repayments.
Some mortgage providers will be willing to accept a deposit as low as 15% and still waive LMI, but this isn’t standard, so you’ll need to compare rates to find the right loan for your deposit amount.
Lenders will also evaluate your credit history to assess your ability to manage debt responsibly. A good credit score and clean report will massively improve your chances of both loan approval and good interest rates, while a history of bankruptcy or defaulting will likely result in your application being declined.
Applying for home loans is a minefield, but by working with a mortgage broker you’ll be getting personalised assistance and expertise throughout the entire process. Here are just a few ways Simplifi Lending can help you get a home loan as a teacher.
Not only do we know all there is to know about the home loan market, but we’re also able to leverage our expertise to find home loans that are most suited to teachers, including those that will offer discounts and special deals to education professionals.
We also have access to a wide network of lenders, including banks, credit unions, and non-bank lenders. With these relationships, we’re able to compare home loan products from various sources and narrow down your options, taking away all the hard work and ensuring you’re left with options that are tailored to your needs as a teacher.
At Simplifi Lending, we’ll handle the entire loan application process, too, including paperwork, documentation, lender communication, and all the other hard-to-navigate bits that you’d rather not deal with. This doesn’t only take the stress out of it, but with our expertise, we’re able to save time and potentially get you faster results.
We’ll also negotiate with lenders on your behalf to secure competitive interest rates, favourable loan terms, and reduced fees, saving you as much money as possible in the process.
As licensed professionals, our mortgage brokers will ensure that all the stages of your home loan application adhere to the strict industry regulations and ethical standards, giving you peace of mind that all relevant laws are being complied with.
As a teacher in Australia, you may have access to special treatment tailored to your profession when taking out a home loan. From exclusive discounts to interest rates, we’ll walk you through our top tips on how to leverage your unique position and answer some of your burning questions.
This ultimately depends on your income, expenses, credit history, and deposit size. Most lenders will assess your borrowing power by considering these things in line with their own criteria to determine the maximum amount they believe you can realistically afford to repay.
As a teacher, however, you may be eligible for special home loan products or discounts, which could affect the amount you’re able to borrow compared to a standard home loan. The best thing to do to get the right deal is work with mortgage brokers, who will work on your behalf to increase your borrowing capacity while keeping your costs as low as possible.
Home loan applicants usually have to take out a Lenders Mortgage Insurance (LMI) policy when their deposit is less than 20% of the property value. However, one of the benefits offered to teachers looking for a home loan is an LMI waiver, which may allow you to borrow up to 85% of Loan to Value Ratio (LVR) without having to take LMI on your property.
Depending on the lender and their available options, you may also be offered other discounts as a teacher, including the application fee being waived, access to professional package home loans, and discounts on interest costs for large value loans.
Other potential home loan discounts for teachers include:
These options may be accessible under various government schemes. Work with a mortgage broker who will be able to use their expertise to find the right deal for you.
As well as an LMI reduction, there are some government grants and schemes available to teachers in Australia that can help you with purchasing a property.
The first of these is a First Home Owner Grant (FHOG), which is a national scheme that provides a one-off payment to first home buyers who meet certain eligibility requirements. The grant amount varies between states and territories, but your mortgage broker will be able to look at the maximum amount available to you through this grant.
You may also be eligible for stamp duty concessions or exemptions, which will reduce the upfront costs of buying a property on both newly constructed and established homes.
As a teacher in Australia, you may be eligible for specialised home loan products and discounts that can result in better loan interest rates. However, the rates you’ll be offered will vary between lenders and factors such as your creditworthiness and financial situation will be taken into account when you apply, which will influence the interest rates offered to you.
There are some home loan options available to teachers on probation, but you’ll still need to meet the lender’s criteria and have a clear credit history to be considered. Also, if you’re borrowing more than 90% LVR, you’ll need to provide additional documents to increase your chances of loan approval.
Casual teachers may be entitled to the LMI waiver, however, you must have at least 3-6 months of experience in the role and be able to provide payslips that cover at least 6 months of the current year and prove you have consistent income.
Generally, these potential incentives are only accessible to teachers who have finished their university and practical education and are qualified teachers.
