Teachers often have stable pay, but contract, casual or relief work can make income harder to show, so it pays to understand your grant and LMI options early. The RBA raised the cash rate by 0.25 percentage points to 4.85% on 3 November. Grants, concessions and LMI options can reduce the cash and insurance you need upfront, and this guide covers what is available to teachers.
Key takeaways
- The 5% Deposit Scheme has no income caps, no place limits and no LMI, so it's the first thing to check.
- Every state and territory has a grant, a stamp duty concession or both, and most favour new homes.
- LMI options for teachers vary by lender, so check eligibility and total cost with a broker.
- Permanent, contract and casual teaching income can be assessed differently, so check early.
- You can often combine a grant, a concession and a super release, so check each one's conditions.
Federal help: deposit schemes and super
Three federal options can help you buy with a smaller deposit or build one faster. Each has trade-offs, and none suits everyone.
5% Deposit Scheme
The 5% Deposit Scheme lets you buy with a deposit as low as 5%, or 2% for single parents and legal guardians, with no LMI. The government backs part of the loan instead. Since 1 October 2025 it has had no income caps and no limit on places, and Treasury says property price caps rose at the same time.
You can use it if you are a first home buyer or haven't bought in the last 10 years. Single parents and guardians with a dependent can use the 2% stream even if they have owned before. You apply through a Participating Lender as part of a home loan application, not directly.
After pre-approval you have 90 days to find a home and sign a contract. Price caps vary by location, so check the price cap tool for your area. You must live in the home as an owner-occupier, or the lender may require LMI or other costs. You can read more on our 5% Deposit Scheme for teachers page.
Help to Buy
Help to Buy is a shared equity scheme, which means the government owns part of your home alongside you. It contributes up to 30% of an existing home's price, or up to 40% of a new home's, and you need a deposit of at least 2%. When you sell or buy out the government's share, it shares in any gain or loss in proportion to its contribution.
The income caps from 1 July 2026 to 30 June 2027 are:
- $103,000 for a single applicant
- $165,000 for single parents and joint applicants
Applicants must be Australian citizens aged 18 or over who don't own property in Australia or overseas, and must live in the home. It can't generally be combined with other government help for the purchase, such as another shared equity scheme or a state or territory loan. Stamp duty concessions and grants are still allowed. See our Help to Buy scheme page for more.
First Home Super Saver Scheme
The First Home Super Saver Scheme lets you release voluntary super contributions towards a first home. The ATO says you can release up to $15,000 a year, to a total of $50,000. Non-concessional contributions release in full and concessional contributions release at 85%, both with associated earnings.
The assessable amount goes in your tax return with a 30% tax offset, so speak with an accountant about how it affects you. The ATO also requires you to request a determination before ownership transfers, which is generally before settlement. You must move in as soon as practicable and live there for at least 6 of the first 12 months. Eligibility is individual, so each partner can use their own contributions for the same property.
What to ask as a teacher
Ask your lender how contract and casual or relief teaching income is assessed, as lenders vary. Bring recent payslips and a contract or letter of employment.
State and territory grants and stamp duty
Every state and territory offers something, the rules differ, and most grants are for new homes only. The figures below are as at 8 November 2026 and should be confirmed before you rely on them.
| State | First home owner grant | Stamp duty support | Watch for |
|---|---|---|---|
| NSW | $10,000 for new homes up to $600,000, or $750,000 for house and land | No duty on homes up to $800,000 and reduced duty to $1m; for land, no duty up to $350,000 and reduced duty to $450,000 | Duty rates apply 1 July 2026 to 30 June 2027 |
| VIC | $10,000 for new homes valued at $750,000 or less | No duty up to $600,000, tapering to $750,000 | Victorian-enrolled ADF members are exempt from the residency rules, but reservists aren't |
| QLD | $30,000 for new homes under $750,000 | Full concession on new homes and residential land with no price cap; for established homes, a $17,350 deduction under $710,000, falling to nil at $800,000 | From 1 August 2026, buyers generally need to be citizens or permanent residents |
| WA | Available for eligible new homes. Confirm the amount and caps with the WA Department of Treasury and Finance | Homes to $800,000: no duty up to $600,000, then $16.15 per $100 to $800,000; land to $550,000: no duty up to $450,000 | Applies to agreements from 7 May 2026 |
| SA | $15,000 for new homes, off-the-plan, substantially renovated or building contracts, with no value cap | Full relief on new homes, off-the-plan apartments and vacant land with no value cap; established homes aren't covered | You and your partner can't have owned residential property before |
| TAS | Confirm the current amount and start date with the Tasmanian State Revenue Office | Confirm current duty concessions and dates with the Tasmanian State Revenue Office | Amounts and dates need to be confirmed with the Tasmanian State Revenue Office before relying on them |
| ACT | None covered here | No income threshold or price limit from 1 July 2026, with $0 duty for eligible buyers | No buyer or domestic partner can have owned property in the previous 5 years |
| NT | $50,000 HomeGrown Territory Grant for new homes with no price cap, or the $30,000 FreshStart New Home Grant, but not both | Not covered here, so check the NT Treasury | HomeGrown contracts must be signed between 1 October 2024 and 30 September 2027 |
Prior ownership rules matter more than most buyers expect. Several states exclude you if you or your partner have owned a home before, which can catch people who owned a share in a home before a separation.
Grants and concessions depend on the state where you buy, which may differ from where you teach.
Five ways to avoid or reduce LMI
There are five main ways to avoid or reduce lenders mortgage insurance (LMI). LMI usually applies when you borrow more than 80% of a property's value (the loan to value ratio, or LVR), and it protects the lender, not you. At 20% equity it generally doesn't apply.
- Use the 5% Deposit Scheme, which removes LMI on a deposit as low as 5%, subject to price caps and a Participating Lender.
- Ask about a profession LMI waiver, where LMI would normally apply but isn't charged because of your job, if a lender offers one.
- Ask about lender-paid LMI, where the loan is still insured but the lender pays the premium, which is reflected in the pricing.
- Pick a no-LMI product, which some lenders offer to any borrower, at up to 85% or 90% LVR.
- Save a larger deposit.
Compare the rate, fees and features as well as the LMI cost, because risk fees, lender-paid LMI and different pricing can sometimes cost more over time than paying LMI. Lender criteria change often, and all lending is subject to credit approval.
Can teachers avoid paying LMI?
Some lenders may offer LMI options for teachers, such as a profession waiver, where LMI would normally apply but isn't charged because of your job, or lender-paid LMI, where the loan is still insured but the lender pays the premium, which is reflected in the pricing. Eligibility, loan limits and work history requirements differ by lender and change often, so a broker can confirm which options, if any, are currently available to you. Our page on LMI waivers for teachers has more detail.
How to compare options
- Eligibility differs, so check each lender's income, registration, work history and employment conditions against your situation.
- Several options are for buying an established home, so check this against what you plan to buy, as new homes, off-the-plan purchases and construction may be excluded.
- Compare the rate, fees and features as well as the LMI cost, and weigh any option against the 5% Deposit Scheme on total cost.
Lender criteria change often, and a broker can check which options you qualify for. All lending is subject to credit approval.
How to combine the options
You can often combine a federal scheme, a state grant or concession, and a super release, but the order you check them in matters. Rules, caps and dates change and apply on the contract date, so confirm each one before you sign.
- Check federal eligibility first: the 5% Deposit Scheme and Help to Buy suit different buyers, and Help to Buy can't generally be used alongside other government help for the purchase.
- Add your state or territory support: the grant, the stamp duty concession and whether the home needs to be new.
- Start a super release early: contributions are made in advance and an ATO determination is needed before settlement.
- Match your situation to an LMI option and compare it against the 5% Deposit Scheme on total cost, not just on LMI.
- Check prior ownership and residency rules: most programs require you to live in the home, often for 6 to 12 months, and several exclude people who have owned before.
Price caps and income caps decide more outcomes than the headline amounts, so confirm them for the exact property and your income before you sign a contract. Our mortgages for teachers and home loans for teachers pages explain how we put these pieces together.
Small steps taken early can give you more options later. Book an appointment at a time that suits you, and bring recent payslips, your employment contract or letter and your savings records.
This article is general information only and doesn't consider your personal circumstances. Grants, concessions and lender policies change, and all lending, including any LMI option, is subject to lender criteria and credit approval. Speak with your accountant about tax.
Frequently Asked Questions
Do lenders count casual or relief teaching income?
Lenders vary in how they assess it. A solid work history and recent payslips help, so ask early how your income will be treated.
Can I use the 5% Deposit Scheme and a teacher LMI option together?
The scheme removes LMI on its own, so you would compare the two options on total cost. See the section on whether teachers can avoid paying LMI for how to compare them.
Are grants available for established homes?
Mostly no, as most grants are for new homes only. Stamp duty support does cover established homes in some states, so check the state table above.
