Teacher home loans
Teachers can get a home loan without lenders mortgage insurance, but at fewer lenders than most people think. Of the lenders Money Brain checked, Bank First is the only one that waives LMI for teachers: for first home buyers, to 90% of the property's value, on loans up to $800,000. Teachers Mutual Bank doesn't waive it. Other teachers can avoid it through the government's 5% Deposit Scheme.
Which banks waive LMI for teachers?
Most professional LMI waivers are written for doctors, lawyers and accountants. Teachers are on one lender's list among those we checked.
| Lender | Waives LMI for teachers? | Who and on what terms |
|---|---|---|
| Bank First | Yes, to 90% | Education and healthcare workers buying their first home. Loans up to $800,000. Not for building. |
| Teachers Mutual Bank, Firefighters Mutual, Health Professionals Bank, UniBank | No | One bank, four brands. Above 80%, a teacher pays LMI like anyone else. |
| Westpac, St.George, Bank of Melbourne, BankSA | No | Its professional waiver covers medical, nursing and allied health, accounting and legal roles. Teachers aren't on it. |
| CommBank | No | Its professional waiver covers medical, legal and finance roles. |
| NAB | No | Its professional waiver covers medical, legal and finance roles. |
| ANZ | No | Its professional waiver covers medical, legal and accounting roles. |
| Bankwest | No | Its lists cover medical, legal, accounting, banking, technology and senior federal public service roles. |
| Suncorp | No | Its waiver covers medical practitioners only. |
| ING | No | No professional waiver. LMI applies above 80%. |
| AMP | No | No professional waiver. |
A "no" means the lender's waiver doesn't name teachers. You can still borrow above 80% at all of them; you pay LMI, or use the 5% Deposit Scheme where the lender offers it.
Teachers Mutual Bank doesn't waive LMI for teachers
The name suggests it should, and plenty of teachers assume it does. It doesn't. Teachers Mutual Bank is one bank trading as four brands, Teachers Mutual, Firefighters Mutual, Health Professionals Bank and UniBank, with one lending policy. Being a teacher makes you eligible to bank there. It doesn't change what you pay to borrow above 80% of the property's value: a teacher pays LMI there like anyone else, unless they buy through the government's 5% Deposit Scheme.
Bank First's waiver, and who it fits
First home buyers only.
If you've owned a home before, it doesn't apply.
Up to 90% of the property's value,
so you need a 10% deposit.
Loans up to $800,000.
Not for building.
It's for buying a home, not a construction loan.
Education and healthcare workers.
Bank First's policy is written for both groups together.
Bank First's waiver was last checked on 3 October 2026.
Three ways a teacher buys with less than 20%
Bank First's waiver.
A 10% deposit and no LMI, if it's your first home, the loan is $800,000 or less and you're not building.
The 5% Deposit Scheme.
A 5% deposit and no LMI, through the government, at a participating lender. Any eligible first home buyer can use it, teacher or not, if the price is under the cap for where you're buying. No income limit.
Pay LMI.
Any lender, with a smaller deposit than the waiver needs. LMI is a one-off premium, usually added to the loan.
A parent's guarantee is a fourth route, with its own costs for the person who signs.
What each route costs on a $600,000 first home
An illustration, not a client file. A teacher buying their first home for $600,000. LMI is from one insurer's rate card we hold, at first home buyer rates.
| Route | Deposit | Loan | LMI |
|---|---|---|---|
| Bank First's waiver | $60,000 (10%) | $540,000 | None |
| Another lender, paying LMI | $60,000 (10%) | $540,000 | about $11,200 |
| 5% Deposit Scheme | $30,000 (5%) | $570,000 | None |
| Another lender, paying LMI | $30,000 (5%) | $570,000 | about $19,200 |
On a 10% deposit, the waiver saves about $11,200. On a 5% deposit, the scheme saves about $19,200, and you need $30,000 less up front. The scheme's price cap depends on where you buy; Sydney's is $1.5 million and regional South Australia's $500,000, so check yours before you choose. LMI varies from lender to lender.
Permanent, contract or casual: how lenders read a teacher's pay
Permanent.
The simplest case. Lenders read your salary from your payslips and employment letter.
Fixed-term contract.
Lenders look at how long the contract runs and how long you've been teaching. A contract that ends soon after settlement, with no history of renewals, is the one that gets questioned.
Casual or relief.
Lenders usually want a history of casual work before they count it, and often average your income over that time. How long a history, and how it's averaged, differs between lenders more than anything else on this page.
The same applies whether you teach at a public, Catholic or independent school: lenders look at how you're employed, not who employs you. If you're a graduate in your first year, lenders generally look more at whether the role is permanent or a long contract than at how long you've been in it.
Are there home loan grants for teachers?
Not grants just for teachers, among the schemes Money Brain has checked. Teachers get the same government help as any first home buyer: their state's first home grant and stamp duty concession, which in some states apply only to a new home, and the federal 5% Deposit Scheme, Help to Buy and First Home Super Saver Scheme. Those can be worth far more than a waiver.
Teacher home loan questions
At one lender among those Money Brain checked on 1 October 2026: Bank First waives lenders mortgage insurance for teachers buying their first home, to 90% of the property's value, on loans up to $800,000, and not for building. The major banks' professional waivers don't include teachers.
Teaching, and buying your first home?
Tell me where you teach and whether you're permanent, on contract or casual, roughly the price you're looking at, and what you've saved. I'll tell you whether Bank First's waiver, the 5% Deposit Scheme or another lender fits you better, and what each would cost.
You'll hear back within the hour in business hours, and by 9am the next business day after hours.
Sources
- 1
Bank First: LMI waiver for healthcare and education workers. Checked 3 October 2026.
- 2
Teachers Mutual Bank group: lending reference guide, no professional LMI waiver. Checked 1 October 2026.
- 3
Westpac Group (Westpac, St.George, Bank of Melbourne, BankSA): LMI waiver policy for professionals. Checked 1 October 2026.
- 4
CommBank, NAB, ANZ, Bankwest, Suncorp: professional LMI waiver policies. Checked 1 October 2026.
- 5
ING, AMP: no professional LMI waiver. Checked 1 October 2026.
- 6
People First Bank: Essential Services Package, peoplefirstbank.com.au. Read 29 September 2026.
- 7
LMI premium: one insurer's published rate card, first home buyer rates. Checked 1 October 2026.
- 8
Updated 2 October 2026