Second Home Deposit Requirements for Teachers in 2026
TL;DR Twenty per cent remains the cleanest deposit benchmark for a second home, avoiding LMI and opening the widest lender choice, with 5% to 6% in buying costs on top. First-home supports like the 5% Deposit Scheme and state grants are tied to first-home buyer status and generally do not carry across to a second […]
How Teachers Can Use Their First Home’s Equity to Buy a Second Home
TL;DR Usable equity is calculated at 80% LVR minus the existing loan balance — total equity on paper is rarely what lenders will actually release. Having equity is necessary but not sufficient; serviceability is tested separately at APRA’s buffered rate of at least 3 percentage points above the actual rate, across both loans. Structure the […]
Second Home Loan vs Investment Loan for Teachers: Key Tax Differences
TL;DR The loan label drives pricing and serviceability, but the ATO determines deductibility by the purpose of the borrowed funds — not which property secures the loan. Keeping the old home as a rental makes that original loan’s interest deductible, while interest on the new owner-occupied loan is not, regardless of which property secures it. […]
Buying a Holiday Home as a Teacher: Lending Rules and Considerations
TL;DR Most lenders treat holiday homes as investment loans, meaning higher rates, stricter LVR caps, and more expensive LMI than an owner-occupied purchase. Teacher profession benefits like LMI waivers rarely extend to second-home or investment lending, and first-home schemes and grants are tied to owner-occupier status. Serviceability is the real hurdle: APRA’s 3% buffer, shaded […]