Banks Love Teachers, But Why?

Why do Lenders Love Teachers?

We have a ton of lenders on our panel that want teachers as home loan customers. Here are some reasons why:

1. Teachers have a stable, government-derived income
2. They have an annual commencing salary of over $71,000
3. They have great job security, with 5 of 6 graduate teachers in QLD going on to work in the industry for 5 years or longer

Is there anything that can effect my serviceability as a Teacher?

If you’re a teacher looking to enter the property market, here’s what you need to know:

1. Lenders will treat your HECS debt as an ongoing liability which is likely to reduce your overall borrowing capacity
2. If you’re making compulsory super contributions, lenders will take this amount from your serviceable income.
3. Having a Remserv lease or car loan could put a considerable dent in your borrowing capacity, as lenders will treat this as an ongoing liability. 

What this means for Teachers?

Teachers play a crucial role in today’s society and we think it is important that this be recognised when applying for a home loan. Some lenders have specialised policies and loan products that are only available to teachers.

Lenders Mortgage Insurance can be an expensive cost if you don’t have a full 20% deposit plus the associated purchase costs to buy your next home. We work with a specific lender who waives LMI for eligible teachers up to 85% LVR. This could potentially save thousands of dollars and allow you to borrow more money.

Sources:

• https://teach.qld.gov.au/become-a-teacher/teacher-pay-and-benefits
• https://www.brisbanetimes.com.au/national/queensland/one-in-three-australian-teachers-leaves-in-first-five-years-inquiry-hears-20190225-p5106h.html
• https://www.bankfirst.com.au/about-us/articles/housing-property/extending-the-lenders-mortgage-insurance-discount-for-teachers