Banks favour teachers because they are considered less risky borrowers compared to some other professions.

As teachers and educators, you are eligible for discounts and loan features which people in other industries or professions do not qualify for. These discounts and features will save you money and improve your ability to borrow for a home loan.

When seeking out a home loan, teachers should find a lender who understands the employment conditions of the teaching profession.

Extra income teachers earn could significantly increase your borrowing capacity. Some lenders will recognise 100% of this income if you have a letter from the principal stating that this new position is ongoing. It’s a similar story with income from overtime. Some lenders will count this if you have a letter from your school outlining how much overtime you’ve earned in the past year.

Eligibility for a teacher home

As long as one of the applicants fits into the role of an educator or teacher, the special home loan policy will apply to the application.

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Do I need to provide an employment letter?

In some cases, yes, the lender may ask for a letter of employment to prove your current and future employment status, namely:

• How long you have been a teacher.
• Whether you have a block of teaching confirmed for the upcoming term.
• Whether you will continue to work as a casual, if you’re looking for temporary work elsewhere or whether you will soon be made a full-time teacher.

What if I’m a teacher on probation?

Teacher home loans are available even if you’re on probation.

However, note that you’ll need to meet all other standard lending criteria and have a clear credit history.

Can I get my home loan during school holidays?

During the school term, you’re busy planning classes and marking homework, so you typically don’t have time to search for a property, speak to a real estate agent or start your home loan application.

When you do have time to speak to a professional or need an employment letter to prove your income, agents are on holiday and the school is closed.

Luckily, the HR department of most schools is open during school holidays.

In addition to this, most schools have online payroll systems that allow you to login to take a screenshot of your income and employment evidence.

If your employment contract will be signed off over the Christmas holidays, most teachers can contact their principals to provide an employment letter confirming that your contract will be renewed for the coming school year.

Is working as a casual relief teacher acceptable?

Working as a casual teacher is simply the nature of starting your career as a new teacher. Some teachers also work casual indefinitely as it suits their lifestyles. We have found this very common when they may have recently started a new family and have returned to work post maternity leave.

The problem that banks have is that you only work around 40 weeks per year and during the long summer break, there’s often no income to show.

Luckily, some lenders will work off your gross year to date (YTD) income to determine your average fortnightly salary.

The lender will typically require you to:

• Have been in your casual position for at least 3 months.
• Provide payslips showing consistent income over a 3-month period.