Which Banks Waive LMI for Teachers in Australia? (2026 Comparison)

If you’re a teacher in Australia, you may be able to avoid paying Lenders Mortgage Insurance (LMI) entirely — even with less than a 20% deposit. Several banks and lenders recognise teaching as a stable, essential profession and offer LMI waivers that can save you $10,000 to $20,000 or more on your home purchase.

But not all banks treat teachers the same. The eligibility criteria, maximum LVR, income requirements, and types of teaching roles covered vary significantly between lenders. This guide compares the major options so you can find the best deal for your situation.

For a detailed overview of teacher-specific waiver policies, see our teacher LMI waiver page.

Which Banks Offer LMI Waivers for Teachers?

Several Australian lenders offer LMI waivers for qualified teachers, though the specifics of each policy differ. Here’s what’s currently available.

Bank First (Education-Focused)

Bank First (formerly Victoria Teachers Mutual Bank) is the standout lender for teachers. As an education-sector mutual bank, their entire lending model is built around serving educators. They don’t just waive LMI as a special concession — it’s core to their product offering.

Key details:

• Maximum LVR: Up to 90% (10% minimum deposit)
• Income requirement: Generally more flexible than major banks for education professionals
• Eligible roles: Broad coverage across the education sector — primary teachers, secondary teachers, university lecturers, TAFE teachers, early childhood educators, education administrators, and support staff
• Professional registration: Must be registered with the relevant state or territory teaching authority (e.g., VIT in Victoria, NESA in NSW, QCT in Queensland)
• Property types: Owner-occupied; check current policy for investment eligibility
• Notable advantage: As an education-focused lender, their assessment process is tailored to teacher income structures, including understanding of salary scales, allowances, and career progression

Bank First is often the first choice for teachers because of their sector expertise and competitive rates tailored to educators.

Granite Home Loans

Granite Home Loans is a non-bank lender that offers professional LMI waivers to a broad range of occupations, including teachers.

Key details:

• Maximum LVR: Up to 90%
• Income requirement: Typically $150,000+ household income
• Eligible roles: Registered teachers, head teachers, department heads, principals
• Professional registration: Required — must hold current registration with state teaching authority
• Property types: Owner-occupied and investment (subject to policy)
• Notable advantage: Competitive rates and more flexible lending criteria than some major banks

Commonwealth Bank (CBA)

CBA offers professional LMI waivers for certain professions, and teachers may be eligible under their broader professional package, though this is typically targeted at higher-income education professionals.

Key details:

• Maximum LVR: Up to 85%–90% (depending on the specific policy and loan amount)
• Income requirement: Typically $150,000+ individual income
• Eligible roles: Generally focused on senior education roles — principals, deputy principals, head teachers, senior lecturers
• Professional registration: Required
• Notable consideration: CBA’s teacher waiver eligibility tends to be narrower than specialist education lenders. The income threshold can be a challenge for early-to-mid-career classroom teachers

NAB

NAB has professional LMI waiver policies that can extend to education professionals, though the specifics have changed over time.

Key details:

• Maximum LVR: Up to 85%–90%
• Income requirement: Typically $150,000+ household income
• Eligible roles: Varies — typically requires senior teaching positions or combined household income with a partner in a qualifying profession
• Professional registration: Required
• Notable consideration: NAB’s eligibility for teachers is more restrictive than for medical or legal professionals. Teachers are more likely to qualify when combined with a partner in another eligible profession

ANZ

ANZ offers professional packages with LMI waiver components, though teacher eligibility is limited.

Key details:

• Maximum LVR: Typically up to 85%
• Income requirement: Generally $150,000+ individual income
• Eligible roles: Limited — typically senior education roles only
• Notable consideration: Teachers are not ANZ’s core waiver demographic. Eligibility is assessed on a case-by-case basis

Westpac

Westpac has professional LMI waiver programs, but teacher eligibility is generally more restricted than for medical, legal, and financial professionals.

Key details:

• Maximum LVR: Typically up to 85%–90%
• Income requirement: $150,000+ individual or household income (varies by policy)
• Eligible roles: Senior education professionals — principals, deputy principals
• Notable consideration: Like ANZ, Westpac’s waiver is not primarily designed for teachers. Senior roles with higher incomes are more likely to qualify

Bank-by-Bank Comparison Table

Feature	Bank First	Granite	CBA	NAB	ANZ	Westpac
Max LVR	90%	90%	85–90%	85–90%	85%	85–90%
Min deposit	10%	10%	10–15%	10–15%	15%	10–15%
Income threshold	Flexible	~$150K	~$150K	~$150K	~$150K	~$150K
Classroom teachers	Yes	Yes	Limited	Limited	Limited	Limited
Principals/heads	Yes	Yes	Yes	Yes	Yes	Yes
Early childhood	Yes	Check	Unlikely	Unlikely	Unlikely	Unlikely
University/TAFE	Yes	Yes	Possible	Possible	Limited	Limited
Investment property	Check	Possible	Case-by-case	Case-by-case	Unlikely	Case-by-case
Education focus	Core business	No	No	No	No	No

Policies change regularly. Always confirm current eligibility with the lender or a specialist broker.

What Types of Teachers Qualify?

The types of teaching roles covered depend heavily on the lender. Here’s a general breakdown:

Broadly Accepted by Most Lenders Offering Teacher Waivers

• Primary school teachers — government and non-government schools
• Secondary school teachers — government and non-government schools
• Principals and deputy principals — all school types
• Head teachers and department heads — secondary and senior roles

Accepted by Specialist/Flexible Lenders

• Early childhood educators — with formal teaching qualifications
• TAFE teachers and lecturers — with relevant qualifications
• University lecturers and professors — academic roles
• Special education teachers — registered specialists
• Education administrators — curriculum coordinators, education directors

Roles That Typically Don’t Qualify

• Teacher’s aides / education assistants — support roles without teaching registration
• Casual relief teachers (without ongoing contracts) — some lenders exclude casual-only roles
• Tutors — private tutoring without a formal teaching position
• Childcare workers — without formal teaching qualifications and registration

The key qualifier across almost all lenders is registration with your state or territory teaching authority. Without current registration, you’re unlikely to qualify for a teacher-specific LMI waiver.

Professional Registration Requirements

Each Australian state and territory has a teaching registration body:

State/Territory	Registration Body
New South Wales	NSW Education Standards Authority (NESA)
Victoria	Victorian Institute of Teaching (VIT)
Queensland	Queensland College of Teachers (QCT)
Western Australia	Teacher Registration Board of WA (TRBWA)
South Australia	Teachers Registration Board of SA (TRB)
Tasmania	Teachers Registration Board of Tasmania (TRB)
ACT	ACT Teacher Quality Institute (TQI)
Northern Territory	Teacher Registration Board of NT (TRB)

Lenders typically require evidence of current registration as part of the LMI waiver application. This usually means providing your registration number or a copy of your registration certificate.

Income Requirements and How Teacher Pay Is Assessed

Most lenders that offer LMI waivers set an income threshold — commonly $150,000 for individual income or household income, depending on the lender.

Can Teachers Reach the $150,000 Threshold?

For many classroom teachers, the $150,000 individual income threshold is a stretch. In 2026, typical base salaries for experienced teachers range from approximately $85,000 to $115,000 depending on the state, sector, and experience band.

However, several factors can bring a teacher’s assessed income above the threshold:

Additional Income Sources That Count

• Head teacher / department head allowances — can add $10,000–$25,000+ to base salary
• Leadership positions — principals ($130,000–$200,000+), deputy principals ($120,000–$170,000+)
• Highly Accomplished and Lead Teacher (HALT) certification — salary uplift in some jurisdictions
• FIFO/remote location allowances — teachers in remote or regional areas often receive substantial allowances
• Overtime, additional duties, and extra-curricular coordination — some roles include paid additional responsibilities

Household Income

Several lenders assess household income rather than individual income. This means a teacher earning $100,000 with a partner earning $60,000 (combined $160,000) could qualify for the waiver — even if neither income alone meets the threshold.

Why Bank First Is Different

Bank First typically applies more nuanced income assessment for teachers. Because they specialise in education-sector lending, they understand teacher salary structures, progression scales, and the reliability of education employment. This often translates to more flexible income assessment compared to major banks that apply a one-size-fits-all approach.

Deposit Requirements for Teachers

The minimum deposit required depends on the maximum LVR the lender allows under the waiver:

Max LVR	Minimum Deposit	Deposit on $600K Property	Deposit on $800K Property
90%	10%	$60,000	$80,000
85%	15%	$90,000	$120,000

Remember, the deposit is separate from other purchase costs (stamp duty, legal fees, inspections, etc.). Budget for approximately 4–6% of the property price on top of your deposit for these costs.

You can estimate your total upfront costs and potential LMI savings using the LMI calculator.

How Much Can Teachers Save with an LMI Waiver?

The savings depend on your property price and LVR. Here’s what teachers typically save:

Property Price	Deposit (10%)	LMI Without Waiver	Savings
$500,000	$50,000	~$8,200	$8,200
$600,000	$60,000	~$10,400	$10,400
$750,000	$75,000	~$14,400	$14,400
$1,000,000	$100,000	~$20,100	$20,100

At $750,000, an LMI waiver saves a teacher $14,400 — money that stays in your pocket or goes towards your property. Over a 30-year loan, if that $14,400 was capitalised onto the loan, you’d also save approximately $18,000 in interest — making the true benefit closer to $32,000.

Which Bank Is Best for Teachers?

The answer depends on your specific circumstances.

If You’re an Early-to-Mid Career Classroom Teacher ($80K–$120K Income)

Best option: Bank First. Their education-sector focus means more flexible income assessment and broader role coverage. You’re less likely to be excluded based on income or role type.

If You’re a Senior Teacher or School Leader ($120K+)

Best options: Bank First, Granite, or one of the major banks. At this income level, you’ll likely meet the thresholds for multiple lenders. Compare interest rates, features, and total loan cost.

If You’re Buying with a Partner Who’s Also a Professional

Best option: Compare major banks and specialist lenders. If your partner is a doctor, lawyer, accountant, or another professional with strong LMI waiver eligibility, the combined profile may unlock better terms with a major bank. See the full list of eligible professions.

If You’re Buying an Investment Property

Best option: Granite or check specific lender policies. Teacher LMI waivers on investment properties are less common. Bank First and some other lenders may offer this, but it’s not guaranteed.

If You Want the Most Competitive Interest Rate

Best option: Compare across all eligible lenders. The LMI waiver is one factor, but the interest rate and loan features (offset account, redraw, flexibility) also matter. A specialist broker can model the total cost across your eligible options.

Frequently Asked Questions

Do all banks waive LMI for teachers?

No. Teacher LMI waivers are offered by select lenders, not all banks. Bank First (an education-sector mutual bank) and Granite Home Loans are among the most accessible for teachers. Major banks (CBA, NAB, ANZ, Westpac) have more restrictive teacher eligibility, often requiring higher incomes or senior roles.

What income do I need as a teacher to get an LMI waiver?

Most major banks require approximately $150,000 in individual or household income. Specialist education lenders like Bank First may have more flexible income requirements. Senior roles (principals, head teachers) are more likely to meet major bank thresholds.

Are casual teachers eligible for LMI waivers?

Generally, no. Most lenders require permanent or ongoing employment as a registered teacher. Casual-only roles are typically excluded. If you’re on a fixed-term contract, some lenders may still consider you if the contract duration is sufficient.

Can early childhood teachers get an LMI waiver?

It depends on the lender. Bank First has broader coverage of education roles including early childhood educators. Major banks are less likely to include early childhood education in their teacher waiver policies.

Does tutoring income count towards the income threshold?

Typically, no — unless it’s declared as part of a formal second income and you can demonstrate a consistent history. Primary employment income and formal allowances are what lenders primarily assess.

Can I use an LMI waiver and the First Home Guarantee together?

You don’t need both — each one eliminates LMI on its own. If you qualify for a teacher LMI waiver, you may not need the First Home Guarantee (FHBG). However, if your income is below the waiver threshold, the FHBG may be a better option for your first purchase.

How do I apply for a teacher LMI waiver?

You apply through the lender offering the waiver — either directly or through a mortgage broker. You’ll need to provide evidence of your teaching registration, employment, and income. The waiver is assessed as part of the standard loan application. Check your eligibility here.

Next Steps

Finding the right lender for your teaching career and financial situation is the key to maximising your savings. Here’s how to start:

1. Check your LMI waiver eligibility — free, 60 seconds, no credit check
2. Learn about teacher LMI waivers — detailed eligibility and savings information
3. Estimate your LMI savings based on your property price and deposit
4. See all eligible professions — your partner’s profession may also qualify, unlocking more lender options
5. Understand how LMI works to make informed decisions about your home loan