Teacher LMI Waivers and Lender-Paid LMI

Selected lenders offer education-sector home loans that may allow eligible teachers to borrow up to 90% of a property’s value without paying LMI themselves.

Eligibility can depend on your teaching role, employment type, probation status, credit history and the property you are purchasing. Some offers are limited to permanently employed primary or secondary school teachers, while others may include a broader range of education professionals.

How Much Money Could I Save?

Eligible teachers who qualify for an LMI waiver or lender-paid LMI may be able to purchase with a 10% deposit while avoiding a significant upfront cost.

Australian Government 5% Deposit Scheme

Eligible first home buyers, including those who have not owned property or land in Australia during the previous 10 years, may be able to buy with a minimum 5% deposit without paying LMI.

Eligible single parents and legal guardians may be able to purchase with a deposit as low as 2%. There are no income caps or waiting lists, although property price caps and participating lender requirements still apply.

Australian Government Help to Buy Scheme

Help to Buy allows eligible Australian citizens to purchase with a minimum 2% deposit.

The Australian Government may contribute up to 30% of the price of an existing home or 40% of a newly built home. Because this is a shared equity scheme, the Government shares in any increase or decrease in the property’s value until its contribution is repaid.

Income limits, property price caps and other conditions apply.

First Home Super Saver Scheme

Eligible first home buyers can make voluntary contributions into super and later release eligible contributions and associated earnings towards their deposit.

Up to $15,000 of voluntary contributions from each financial year can count towards the scheme, with a total contribution limit of $50,000 per person. This option requires planning, so it is best considered well before you are ready to make an offer.

State and Territory First Home Buyer Support

Teachers may also qualify for the same grants and concessions available to other eligible home buyers in their state or territory.

Depending on where and what you purchase, assistance may include:

• A First Home Owner Grant

• A stamp duty exemption or concession

• Support for purchasing or building a new home

• Off-the-plan concessions

• State or territory shared equity programs

Eligibility, property limits and grant amounts vary considerably across Australia and can change over time.

Rural and Remote Teacher Benefits

Teachers accepting eligible rural, regional or remote positions may have access to additional employment benefits that could reduce purchasing or living costs.

For example, eligible NSW teachers working at rural and remote incentive schools may receive a stamp duty relief payment of up to $10,000 when purchasing a home near their workplace. Narrow reimbursement arrangements may also apply to certain Victorian teaching employees who are officially transferred, promoted or redeployed.

Other education departments may offer subsidised housing, rental assistance, relocation payments or location allowances. These are employment benefits rather than home loan concessions, but they may help you protect or build your deposit.

HELP Debt Reduction for Very Remote Teachers

Eligible teachers working in very remote Australian communities may receive a waiver of HELP debt indexation.

Teachers who complete 1,400 days of full-time service within a six-year period may also qualify for a reduction of accumulated HELP debt. This does not directly reduce the cost of a home loan, but it can be an important part of your longer-term financial plan.

Let’s Find the Right Path for You

Not every benefit can be combined, and qualifying for a scheme does not guarantee loan approval.

Prestige can compare the available pathways side by side, including the deposit required, LMI, interest rates, fees, repayments and long-term cost. That way, you can choose the option that genuinely puts you in a stronger position.