LMI Waiver for Teachers

For many Australians, saving for a 20% deposit can be a challenge, and if you borrow more than 80% you are faced with the added cost of LMI, which can add tens of thousands of dollars. The good news is that teachers and others in the education industry can access LMI waivers while borrowing up to 90% LVR, so you can buy your home with only 10% deposit and no LMI.

In this article, we’ll explore how LMI waivers work for teachers, which banks and lenders offer them, and the eligibility requirements you need to meet. If you're a teacher looking to step into the property market sooner and save on unnecessary costs, this guide will help you navigate your options.

We also recommend speaking to an mortgage broker who is experienced with teacher LMI waivers, such as Eden Emerald Mortgages. They make the entire process easy for you, with their expert guidance, and give you the best chance of home loan approval. They will compare over 40+ lenders to find you the lowest interest rates and explore other options if you do not qualify for an LMI waiver. The best thing is they are 100% free for you, as they are compensated by the lender, so you don't have to spend an extra cent to take advantage of their services. To get in touch, complete the short form below and receive a callback about your situation.

LMI Waiver for Teachers: Who is Eligible?

• Teachers
• Tutors
• Trainers
• Students studying teaching
• Employees of eligible educational employers, as listed: 
  • Government Schools
  • Non-Government Schools
  • Catholic Schools
  • Universities
  • TAFEs
  • Preschools
  • Kindergartens
  • Child Care Centres
  • Family Day Care Australia
  • Education Unions
  • Department of Education and Training
  • Private Colleges

Which Lenders Offer LMI Waiver for Teachers?

How to Apply for LMI Waiver for Teachers

To apply for a LMI waiver as a teacher, simply follow these steps:

1. Check Eligibility: Find out if you are eligible, based on your profession, deposit amount, and desired loan amount. It is a good idea to speak to a mortgage broker who can help you determine eligibility, as well as guide you through the entire process. 
2. Speak to the Lender: If you use a mortgage broker, they will speak to the lenders on your behalf, so you can skip this step. If you decide to apply for a LMI waiver by yourself, then you need to compare lenders, choose who you want to use, and tell them you want to apply for a No LMI home loan.
3. Submit Documents: Provide any documents that are requested, such as proof or employment, relevant certification or registration for your profession, pay slips, bank statements and tax returns.
4. Receive Confirmation: If you are approved, the lender will waive your LMI, and you can borrow up to 90% LVR without having to pay any LMI costs.

Is Overtime Counted when Assessing Borrowing Power?

Yes, most lenders take teachers' overtime into account when calculating income for home loans, but the percentage they include varies. Generally, about 80% of overtime earnings are considered to allow for fluctuations in workload. Teachers who regularly take on additional responsibilities—such as tutoring or supervising extracurricular activities—may have a better chance of having this income included, especially if they can show a consistent history of overtime for at least six to twelve months.

Lenders also assess the stability and frequency of overtime to determine if it’s a reliable source of income. To improve your chances of having overtime counted, you’ll need to provide supporting documents like payslips or employment contracts as proof of steady earnings.

Can Casual Teachers Qualify for an LMI Waiver?

While securing an LMI waiver as a casual teacher can be more difficult, it’s not out of reach. Casual roles are common in education, but lenders tend to assess casual income with more caution than they do for permanent contracts.

When evaluating a casual teacher’s income, lenders typically annualise the year-to-date earnings but assume work is available for only 40 weeks per year, rather than 52, to account for school holidays. If you’ve been employed in a casual capacity for at least three to six months and can provide three months’ worth of payslips showing consistent income, some lenders may still consider you for an LMI waiver.

Teaching is considered a stable profession, so some lenders may be more flexible with casual educators than with casual workers in other industries. To improve your chances of approval, working with a mortgage broker who specialises in home loans for teachers can be a valuable step in the process.