? Teaching is a rewarding profession in many ways, but one of the lesser-known benefits is that teachers are highly sought after by lenders.
Their stable employment and resulting incomes mean that banks and home lenders are keen to offer teachers home and investment loans.
In fact, the COVID-19 crisis has cast doubt over the job security of many other workers, so now might be an ideal time for teachers to consider taking out a mortgage for a home or
.
If this is you, then you’ll want to keep reading.
Are you thinking about
and want to find out how much you could borrow, or do you need some advice about options, compare home loans or apply for one? Well, then you can start the process online in your own time.
and competitive lending market? Why not start with checking our loanScore calculator to see how much you could be saving? It takes two minutes, and you could check to see if you could be saving thousands!
without requiring them to take out Lenders Mortgage Insurance (LMI). It’s a big saving – LMI on an 85% loan for an $800,000 property comes to about $9,500.
For teachers who want to borrow more, some
It can sometimes be difficult for casual teachers to get a mortgage because of their uneven work patterns – many work about 40 weeks a year. Those school holiday gaps make for periods without income, particularly over summer, and these can deter some lenders.
However, there are some lenders that will take account of what’s known as your gross year-to-date income to determine your average fortnightly salary. These lenders will typically want to see three months of payslips to show that you have been in constant employment and some will also want a letter from your current employer stating that your teaching has been confirmed for the upcoming term.
who understands the employment conditions of the teaching profession and how these can help teachers get a better loan deal.
This extra income could significantly increase your borrowing capacity, but many lenders wouldn’t count it because it doesn’t form a core part of your income. However, 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.
Not all lenders offer special deals for teachers or take account of their unique circumstances, so it’s a good idea to get expert advice from your
, who can help you find the right mortgage deal from a lender who really understands teachers.
Why not request a call back from one of our
? We’d love to help!
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