Australia has dedicated home loans for teachers that give them exclusive benefits in support of their profession. The LMI waiver for teachers is one of the profession-specific benefits that could save teachers thousands on a new home loan.

With the rising cost of property and the need to save for a hefty deposit, becoming a homeowner can feel like a bit of a stretch. But certain professionals can take advantage of profession-specific mortgage benefits, like the LMI waiver for teachers in this case.

If you're a teacher, it can make your dream of owning a home a lot easier and more affordable.

LMI Waiver for Teachers in Australia: Get Up to 90% LVR With Zero LMI [2025]

The dedicated mortgages for teachers can get you up to 90% LVR without having to pay a single dollar of LMI. This is a great deal for us Aussies, as it literally means thousands of dollars saved.

But before we get to the best part, let's explore and understand a bit of the basics, starting with the dreaded LMI itself.

Lender’s Mortgage Insurance (LMI) is a type of insurance in the home loan market. Essentially, a lender takes out LMI to protect itself in case the borrower is unable to repay the home loan.

That means if you default on your loan and the property is sold, LMI covers the lender for any shortfall between the sale price and the remaining loan balance. And keep in mind that LMI only covers the lender, not the borrower, even though the premium is paid by you.

LMI is required when you do not have a considerable deposit, which is 20% in Australia. But a dedicated teacher mortgage can help you avoid this LMI premium even if your deposit goes as low as 10%.

How Much Can You Realistically Borrow With the LMI Waiver for Teachers?

With a teacher mortgage alone, you can borrow up to 90% LVR with zero LMI. That means at least a 10% deposit is required.

However, you can save extra if you combine this with government grants or first-home buyer schemes. To find out what grants or schemes you're eligible for, and how much you can potentially borrow and save, consider talking to a dedicated mortgage advisor.

So, What Qualifies You for the LMI Waiver for Teachers?

These dedicated teacher home loans come with a set of prerequisites that determine your qualification for the LMI waiver. It's a set of eligibility criteria, income requirements, and more.

Before you apply for the LMI waiver for teachers, it would save a lot of your time if you knew the standard prerequisites across the country.

LMI Waiver for Teachers: Basic Eligibility Criteria

To start with, the basic eligibility criteria for a dedicated teacher mortgage are:

• Australian Citizenship or Permanent Residency

• Must be at least 18 years old

• Borrowing of less than $1 million

• Buying a property that is established and within a metro area

• A clean credit file with a high score

• Stable employment

Home Loans for Teachers: Employment Criteria

When it comes to employment, you are required to be a teacher, actively working as a permanent employee for 6--12 months in any of these roles:

• High school teacher

• Preschool/kindergarten teacher

• Primary school teacher

• Specialist teacher

• Student studying teaching

• TAFE lecturer

• Teacher at a government or private school

• Trainer working in the education space in some professional capacity

• Tutor

• University lecturer or professor

Even if you are a casual or part-time teacher, lenders will still consider your home loan application as long as certain conditions are met:

• A consistent employment history of at least 3–6 months in any of the above roles.

• Payslips for at least 3 months in the current year.

Depending on the lender, you may also be required to submit an employment letter from your employer, confirming your current position, duration of employment, and salary details.

Teacher Mortgage: Income Requirements

Lenders will look at your normal base salary and supporting documents (like salary slips and bank statements) when you apply for a mortgage with LMI waiver for teachers.

Other than that, to solidify your income potential, you may submit one or both of these applicable items:

• Higher Duties Allowance (HDA): Lenders will take 100% of the HDA as income if you can give a letter from your employer confirming that the HDA is ongoing and appears on at least 2 recent payslips.

• Overtime: Accepted only if it’s ongoing and appears on your last 2 months’ payslips. Lenders only use a part of this amount for income calculation (usually 80% of overtime income.)

Apply for a Mortgage With LMI Waiver for Teachers

If you're a teacher who can provide proof of employment, income, and other required details along with the 10% deposit amount, you can easily apply for a teacher mortgage with Koalify.

Our advisor will get in touch with you to guide you through the mortgage process.

With us, you get access to 2,000+ exclusive mortgage options with LMI waiver for teachers from 30+ top lenders across Australia.

Plus, we provide unbiased guidance to help you choose the mortgage solution that best fits your need.

And all of this comes FREE—absolutely zero fees or commission guaranteed!

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LMI Waiver for Teachers: FAQs

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How much can teachers save with an LMI waiver?

A mortgage with an LMI waiver for teachers can save you thousands of dollars in upfront costs, depending on the property price and loan amount. This is because LMI is calculated as a percentage, typically costing 1–5% of the home loan amount.

What is the minimum deposit required for a mortgage with an LMI waiver for teachers?

With a dedicated home loan for teachers, you can purchase a property with just a 10% deposit (90% LVR) and still pay zero LMI. Without the waiver, you’d usually need at least a 20% deposit to avoid LMI.

Are casual or part-time teachers eligible for a teacher mortgage?

Yes, you are still eligible for a teacher mortgage even if you're working casual or part-time. But you must meet other qualification criteria as mentioned above, like stable employment history, stable income history, etc.

Do all banks in Australia offer LMI waiver for teachers?

No, not all lenders provide this benefit. Only certain banks and lenders offer the LMI waiver for teachers, so it’s important to compare your options or work with a mortgage broker who knows which lenders provide it.

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