Home Loans for Teachers: LMI Waivers by Lender

Which lenders waive LMI?

Lenders' own published policies, checked 29 September 2026. A policy is not an approval: each lender assesses your application and can change or withdraw an offer.

How much LMI does a waiver save?

A waiver removes the whole premium. At 90% LVR, published lender figures put the LMI you would otherwise pay at about:

NSW, where there is no duty on LMI. Other states add 9% to 11% to the premium. Built from LMI figures Australian lenders publish.

Bank First's waiver: who it suits

Bank First says teachers and healthcare workers can borrow up to 90% of the property value without paying LMI. The same pages also say “up to 85% LVR”, so confirm which applies before you plan around 90%.

The catch is the scheme rule. You must be a first home buyer, buying to live in, and ineligible for any government scheme. In practice that means teachers buying above the 5% Deposit Scheme price cap, or who fail another scheme test. Rates are also higher above 80%: its Premier Package variable rate for principal and interest was 7.03% above 80% to 90%, against 6.19% from 70% to 80%, as displayed on 29 September 2026.

BCU and P&N's essential services offer

BCU Bank in NSW and Queensland and P&N Bank in Western Australia belong to the same lender, Police & Nurses. Their essential services offer names primary, secondary and specialist teachers, including language teachers, and university lecturers.

The waiver applies when your LVR is between 80% and 90%. You apply direct, through the website, contact centre, a home lender or a branch, because broker loans are excluded. The offer also advertises cashback, but BCU says the cashback is not available when LMI is waived, so you get one or the other.

Teacher offers that still charge LMI

Two offers aimed at teachers look similar but keep LMI. Westpac annualises casual teaching income over 52 weeks, which can lift what you can borrow, and LMI still applies above 80%. Police Bank's Essential Workers Home Loan, which lists school teachers, is a shared equity loan with HOPE Housing covering up to 50% of the price, and it requires LMI above 80%.

How lenders assess a teacher's income

Permanent teachers, full-time or part-time, prove income with payslips. ANZ asks for a recent payslip, no older than 60 days, showing at least 3 months of year-to-date pay, unless your salary already goes into an ANZ account. Casual relief and contract teachers face longer checks (lender pages read 29 September 2026):

• Casual relief teachers: Westpac annualises casual income for teachers and other school staff over 52 weeks, and one year-to-date payslip covering at least 6 months can verify it. ANZ asks casual workers for a payslip showing at least 6 months of continuous employment, or extra documents such as an ATO income statement if you have worked less. CommBank asks casual workers whose pay does not go into a CommBank account for six months of bank statements.
• Contract teachers: ANZ's documents guide lists bank statements showing six months of salary credits for contract, temporary and casual work, against three months for full-time or part-time staff.
• Waiver conditions: BCU Bank and P&N Bank ask that you have finished probation, and Bank First asks that you work in the education or healthcare sector.

The other lenders we read do not publish how many weeks they annualise casual pay over, so ask before you apply. Westpac's rule changes how your income is counted, not the LMI, which still applies above 80% LVR.

What if you are not eligible?

Most teachers buying a first home can avoid LMI without a waiver. The 5% Deposit Scheme removes LMI with a 5% deposit, or 2% for single parents, under a price cap for your area, and it has no income test.

Outside the scheme, ubank charges no LMI up to 90% for any occupation on purchases repaying principal and interest, including investment properties.

Compare every route in how to avoid LMI, or see all professions in LMI waiver rules.

Frequently asked questions

Sources