📚 Education Sector Specialist

Home Loans for Teachers

Primary, secondary, private, public, CRT. Lenders love teachers. Predictable salary scales, job security, government employment. Get pre-approved in 48 hours.

Calculate Borrowing Power → Speak to Specialist

Why Teachers Are Ideal Borrowers

Banks rank teachers among lowest-risk professions. Government-backed employment, transparent salary progression.

🏛️

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.

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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.

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Transferable Anywhere

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

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High Demand Profession

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

Teacher Income & Borrowing Capacity

Salary scales, extra duties, how lenders assess teacher income.

NSW Public School Teacher Salary Scale (2024)

Graduate Teacher $75,791
Year 1 (after probation) $82,416
Year 3 $88,330
Year 5 $95,448
Year 8 (top of scale) $103,949
Proficient Teacher $109,881
Highly Accomplished / Lead $117,060 - $122,100

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

💵 Base Salary

100% COUNTED

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

Borrowing Example:

Year 3 Teacher: $88,330 salary

Borrowing capacity: $440K-$530K (5-6× income)

Year 8 Teacher: $103,949 salary

Borrowing capacity: $520K-$625K

📋 Extra Responsibilities

100% COUNTED

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

Example:

Base salary (Year 5) $95,448
Head of Department allowance + $10,000
Total Assessable Income $105,448

Borrowing capacity: $525K-$630K

⏰ Casual Relief Teaching (CRT)

80% COUNTED

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

Example:

CRT rate: $450/day

Average: 4 days/week × 40 weeks = 160 days/year

Gross income: $72,000/year

Lender counts: $57,600 (80%) → Borrow $290K-$345K

Tip: If you're CRT and want to buy soon, try to secure a 12-month temp/contract position. This increases lender count from 80% to 100%, boosting borrowing capacity by $50K-$100K.

🏫 Private School Teachers

100% COUNTED

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

Example (Sydney GPS School):

5 years experience, senior teacher: $115,000

Head of Department: $135,000

Borrowing: $575K-$810K

Best Lenders for Teachers

BEST FOR TEACHERS

🏦 Teachers Mutual Bank / Firefighters Mutual / Public Sector Lenders

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

✓ Competitive rates: 5.89%-6.29% variable

✓ HECS-friendly: Only count actual HECS repayment, not 20% income haircut

✓ Graduate teacher programs: Accept grad teachers with just contract + 1 payslip

✓ Extra features: Offset accounts, free redraw, no monthly fees for teachers

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

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

✅ Pros:
  • Lowest rates: 5.79%-6.09%
  • Understand public sector employment
  • Future salary increases factored in
  • Branch network, app, support
⚠️ Cons:
  • HECS reduces capacity significantly
  • Need 3-6 months payslips minimum
  • Strict on CRT/casual teachers
  • Slower approvals (7-14 days)

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

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

✓ Fast approval: 3-5 business days vs 7-14 at banks

✓ Grad teacher friendly: Accept with just signed contract (before first payslip)

⚠️ Higher rates: 6.19%-6.69%

💡 Strategy: Use non-bank to get in fast, refinance to Big 4 after 12-24 months for lower rate

Common Challenges for Teachers

⚠️

Graduate Teacher Low Starting Salary

$76K starting salary = only $380K-$455K borrowing capacity. Can't afford median house in Sydney/Melbourne.

Solutions:

  • Buy with partner: Two teacher incomes ($76K + $76K = $152K) = $760K-$910K borrowing
  • Use parent guarantor: Borrow $500K-$600K using parents' property as security
  • Buy unit not house: $450K apartment achievable on single grad teacher income
  • Wait 2-3 years: Year 3 salary ($88K) = $440K-$530K capacity, much more realistic
  • Consider regional: Lower property prices, often $350K-$450K for house
⚠️

HECS Debt Reducing Capacity

4-year teaching degree = $35K-$50K HECS. Banks reduce borrowing by $70K-$150K because of HECS repayments.

Solutions:

  • HECS-friendly lender: Teachers Mutual, some non-banks only count actual repayment vs income haircut
  • Pay down HECS first: If you have $30K+ savings, consider paying HECS before buying
  • Buy with partner: Combined income dilutes HECS impact
  • Wait for salary increase: Higher salary offsets HECS impact better
⚠️

Casual Relief Teacher (CRT) Seen as Unstable

Banks nervous about CRT income despite teachers being in high demand. They see "casual" and apply strict rules.

Solutions:

  • Provide 24 months history: Show consistent 3-5 days/week for 2 years
  • Letter from schools: Get letter from principals saying you're their go-to CRT
  • Apply for temp contract: Even 6-month maternity leave cover makes approval easier
  • Use non-bank lender: More flexible on casual income
  • Larger deposit: 15-20% vs 5-10% can offset casual income risk
⚠️

School Holidays = No Income

12 weeks unpaid holidays per year if CRT. Permanent teachers paid during holidays but need to budget carefully.

Solutions:

  • Build savings buffer: $15K-$25K to cover summer holidays + emergencies
  • Offset account: Park holiday savings in offset, reduces interest during unpaid periods
  • Budget on 9-month income: Treat holidays as unpaid, bonus if you're permanent
  • Holiday tutoring: Many teachers earn $50-$80/hour tutoring during holidays

Frequently Asked Questions

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.

Ready to Buy Your First Home?

We specialize in teacher home loans. Public, private, CRT - we know your salary scales, understand HECS debt impact, and find the best lenders for educators.

Grad
Teachers Welcome
HECS
Friendly Options
CRT
Income Counted
Calculate Borrowing Power → Speak to Teacher Loan Specialist

✓ Public & private school teachers • ✓ CRT income counted • ✓ HECS-friendly lenders

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