Home Loans for Teachers

Government Employment

Public school teachers employed by state government (NSW Dept of Education, VIC DET, etc.). Ultimate job security. Banks see this as zero default risk.

Transparent Salary Scales

Public salary scales published online. Lenders know exactly what you'll earn at Year 1, 3, 5, 10. Predictable income progression makes lending easy.

Guaranteed Salary Growth

Automatic yearly progression. Graduate: $75K → Year 5: $95K → Year 10: $110K+. Lenders can forecast your income for entire loan term.

Permanent Tenure

After probation (usually 12 months), permanent ongoing employment. Extremely difficult to be terminated. Consistent income for 30+ year career.

Transferable Anywhere

Teacher registration valid across states. Moving Sydney → Melbourne? Transfer schools easily. Lenders don't worry about relocation employment risk.

High Demand Profession

Teacher shortages in STEM, rural areas. If you lose job, can find new one within weeks. Recession-proof essential service.

Note: VIC, QLD, SA, WA have similar scales (±5%). Private schools often pay 10-20% more. Catholic schools pay similar to public.

Your annual salary per award/scale. All lenders count 100%. Easy to verify via employment contract or payslips.

Year advisor ($3K-$5K), head of department ($8K-$12K), sports coordinator ($2K-$4K). These allowances are permanent and counted 100% by lenders.

CRT/casual teaching income is variable. Lenders typically count 80% if you have 12+ months consistent history averaging 3-4 days/week.

Private school salaries often 10-20% higher than public. Some elite schools pay $120K-$150K for experienced teachers.

🏦 Teachers Mutual Bank / Firefighters Mutual / Public Sector Lenders

These lenders exclusively serve education, health, emergency services. They understand teacher employment perfectly.

🏦 Big 4 Banks (CBA, NAB, Westpac, ANZ)

Traditional banks with lowest rates. Great for teachers with no HECS debt or minimal debts.

🏦 Non-Bank Lenders (Macquarie, Bankwest, ING)

Faster approvals, more flexible on grad teachers and CRT income.

Can I get pre-approved before I start teaching?

Maybe. If you have signed contract: Some lenders (Macquarie, non-banks, Teachers Mutual) will pre-approve based on contract alone, before first payslip. Usually need to have passed probation or be permanent ongoing. If still at uni: No, lenders need employment confirmation. However, you CAN get pre-approval using guarantor while still studying. Best timing: Wait until you have contract + 1-3 payslips for easiest approval and best rates.

How much can I borrow as a teacher?

Typical: 5-6× your annual salary (if no major debts). Examples: Graduate ($76K) = $380K-$455K. Year 3 ($88K) = $440K-$530K. Year 8 ($104K) = $520K-$625K. Private school ($115K) = $575K-$690K. HECS impact: Reduces capacity by $70K-$150K depending on balance. Couple: Two teachers (Year 3 + Year 5 = $183K combined) = $915K-$1.1M borrowing.

Do private school teachers get better loan terms?

Not better terms, but higher borrowing capacity due to higher income. Rates: Same as public school teachers (5.79%-6.29%). Borrowing: Private schools often pay 10-20% more, so capacity increases proportionally. Job security: Lenders slightly prefer public sector (government-backed) but private school at established school (Sydney Grammar, Scotch College, etc.) viewed equally. Contract vs permanent: Some private schools use fixed-term contracts which can complicate lending. Permanent ongoing preferred.

Can CRT teachers get home loans?

Yes but harder. Requirements: 12-24 months consistent CRT income (3-5 days/week minimum). Payslips + tax return proving income. Lenders count 80% of average income vs 100% for permanent. Example: Average $70K/year CRT income → Lender counts $56K → Borrow $280K-$335K. Easier path: Secure 6-12 month contract (maternity cover, project, temp) instead of CRT. This counts as regular income, not casual. Best lenders: Non-banks, Teachers Mutual more flexible than Big 4 for CRT.

What documents do teachers need?

Employment: 2-3 recent payslips, employment contract (showing salary, permanent/temp/casual), letter from principal (if CRT). ID: Driver's license, Medicare card. Income: Last 2 years tax returns + NOAs (especially if CRT), bank statements 90 days. Debts: Credit card statements, car loan, HECS balance from ATO. Savings: 3-6 months statements showing deposit saved + source (salary, gift, inheritance). Property: Contract of sale, building/pest reports.

Should I wait a few years to build my salary before buying?

Depends. Wait if: (1) Graduate salary too low for your target property. Year 3-5 gives you $60K-$120K more borrowing capacity. (2) Saving deposit while renting is feasible. (3) Property market is inflated/uncertain. Buy now if: (1) You have deposit ready + can afford decent property on current salary. (2) Rents are high (wasting $25K-$35K/year). (3) Property market rising fast (waiting = priced out). (4) Using guarantor to boost capacity. Reality: Most teachers buy Year 2-4 (after probation, before starting family). Waiting too long means rising prices eat your salary gains.