Teachers qualify for the same first home buyer schemes as everyone else, plus a handful of lender-specific benefits that most people in other professions can't access.
The combination of government schemes and teacher-specific LMI waivers means you can buy sooner, with less upfront cash, and often save thousands in the process. The trick is knowing which option suits your deposit size and whether you're buying new or established.
What First Home Buyer Benefits Are Available to Teachers?
Teachers can access multiple government schemes and grants, depending on the state they're buying in and whether the property is new or established.
The First Home Guarantee lets you buy with a 5% deposit and no lenders mortgage insurance. There's no income cap from October 2025, and no restriction on where you buy. Teachers with stable employment typically meet the eligibility criteria without issue. You'll need to be an Australian citizen, have lived in Australia for at least the past 12 months, and purchase a property under the regional price cap for your area.
The First Home Owner Grant is a state-administered cash payment for buyers purchasing or building a new home. Queensland offers up to $30,000 for new builds purchased from July 2024. New South Wales and Victoria provide $10,000. Western Australia also offers $10,000. The grant is paid at settlement and can be used toward your deposit or other upfront costs.
Stamp duty concessions vary by state but can save you tens of thousands. In New South Wales, first home buyers pay no stamp duty on properties up to $800,000. Victoria offers full exemption on properties up to $600,000. Most other states have similar schemes with different thresholds.
The Help to Buy Scheme launched in December 2025 and lets the government contribute up to 40% of the purchase price for new homes and 30% for existing homes. Income caps apply: $100,000 for singles and $160,000 for couples. The government takes an equivalent equity share and receives that proportion of any capital gain or loss when you sell.
The First Home Super Saver Scheme allows you to withdraw up to $50,000 from your superannuation to put toward your deposit. Voluntary contributions are taxed at 15% inside super rather than your marginal tax rate, which can result in meaningful savings if you're planning ahead.
Teacher-Specific Home Loan Benefits
Teachers also qualify for LMI waivers through select lenders, which let you borrow up to 90% of the property value without paying lenders mortgage insurance.
LMI waivers for teachers require a minimum 10% deposit and are available through lenders like Bank First and Granite Home Loans. These waivers can save you between $15,000 and $20,000 depending on the loan size. Not all lenders offer them, and eligibility usually requires permanent or contract employment in a recognised teaching role.
If you're deciding between the LMI waiver and the First Home Guarantee, the main difference is deposit size. The First Home Guarantee requires 5%, while the LMI waiver requires 10%. Both eliminate LMI. The First Home Guarantee has property price caps and a limited number of spots each financial year. The LMI waiver doesn't have a cap on property price but does require a larger deposit upfront.
Another advantage for teachers is working with lenders who understand how teacher payslips are structured. Salary sacrifice, union fees, and allowances can all reduce your apparent income on paper. A broker who regularly works with educators knows how to present your income correctly so you don't end up with a lower borrowing capacity than you should.
Call one of our team or book an appointment at a time that works for you. We'll walk you through your options, compare lenders, and help you get pre-approved before you start looking.
Talk to a broker who works with teachers every day.
How Much Can Teachers Save as First Home Buyers?
The savings depend on which schemes you're eligible for and the type of property you're buying.
Consider a teacher buying a new townhouse in Queensland for $650,000. With a 5% deposit of $32,500, you access the First Home Guarantee and pay no LMI. Because it's a new build, you also receive the $30,000 First Home Owner Grant and pay no stamp duty. The FHOG is applied at settlement, reducing the amount you need to bring to the table. LMI on a 95% loan would normally cost around $25,000. Between the LMI saving and the grant, you're more than $50,000 ahead compared to someone who doesn't use these schemes.
In a different scenario, a teacher with a 10% deposit buying an established home for $700,000 uses an LMI waiver. LMI on a 90% loan for that amount would typically cost between $17,000 and $18,000. The waiver removes that cost entirely. There's no FHOG for established homes, but depending on the state, stamp duty concessions could save another $20,000 to $30,000.
Common Mistakes Teacher First Home Buyers Make
One of the most common mistakes is searching for properties without first checking which schemes you're eligible for and what the price caps are.
The First Home Guarantee has regional price caps that vary depending on where you're buying. If you're looking in Sydney, the cap is higher than in regional New South Wales. If you fall in love with a property that's above the cap, you'll either need to increase your deposit or lose access to the scheme. Checking eligibility before you start looking saves disappointment later.
Another issue is choosing a lender that doesn't understand teacher payslips. If your application is assessed by someone unfamiliar with how salary packaging or allowances work, your borrowing capacity might come back lower than it should. This can mean missing out on a property or having to settle for something cheaper than you can actually afford. Working with a broker who specialises in home loans for teachers avoids this problem.
Some teachers assume the 5% deposit scheme is always the right choice without comparing it to an LMI waiver. If you already have 10% saved, the waiver might give you more flexibility in terms of property choice and lender options. Both options eliminate LMI, but the First Home Guarantee comes with caps and a limited number of places.
Finally, many first home buyers forget to budget for upfront costs beyond the deposit. Stamp duty might be covered by a concession, but you'll still need to pay for building and pest inspections, conveyancing, and loan establishment fees. These can add up to several thousand dollars and catch people off guard if they're not factored in from the start.
Step-by-Step: How to Buy Your First Home as a Teacher
Start by confirming which schemes and grants you're eligible for based on your deposit size, income, and the type of property you want to buy.
Once you know what you qualify for, calculate your borrowing capacity. This depends on your income, existing debts, and living expenses. A broker can run these numbers and give you a realistic price range before you start looking.
Get pre-approved with a lender. Pre-approval shows sellers you're serious and gives you confidence when making an offer. It's not a guarantee, but it confirms the lender is willing to lend you a specific amount subject to a formal valuation and final checks.
Search for properties within the price caps and criteria for the schemes you're using. If you're applying for the First Home Guarantee, make sure the property is under the regional cap. If you want the FHOG, it needs to be a new build or a substantially renovated home.
Make an offer once you've found something suitable. Your broker or conveyancer can help with the contract review and cooling-off period.
Submit your formal loan application after your offer is accepted. The lender will order a valuation, verify your employment and savings, and issue final approval.
Settle on the agreed date. The property becomes yours, and any grants you're eligible for are applied at this point.
Call one of our team or book an appointment at a time that works for you. We'll walk you through your options, compare lenders, and help you get pre-approved before you start looking.
Frequently Asked Questions
Do teachers get first home buyer grants?
Yes, teachers can access the same government grants as other first home buyers, including the First Home Owner Grant and stamp duty concessions. Teachers also qualify for LMI waivers through select lenders, which are not available to most other professions.
Can teachers buy with a 5% deposit?
Yes, teachers can buy with a 5% deposit using the First Home Guarantee. This scheme removes the need for lenders mortgage insurance and has no income cap from October 2025.
What is the best home loan for a teacher first home buyer?
The right loan depends on your deposit size and whether you're buying new or established. If you have 5%, the First Home Guarantee is usually the strongest option. If you have 10%, compare the First Home Guarantee with an LMI waiver to see which offers more flexibility.
How much can teachers save using first home buyer schemes?
Savings vary depending on which schemes you use and the property price. Teachers can save $15,000 to $25,000 in LMI alone, plus potentially $10,000 to $30,000 in grants and similar amounts in stamp duty concessions.
Do LMI waivers for teachers apply to all lenders?
No, LMI waivers for teachers are only available through select lenders such as Bank First and Granite Home Loans. Not all lenders offer them, so it's worth comparing options with a broker who knows which ones do.
