Home Loans for Principals
- No upfront costs
- No consultation fees
- Transparent recommendations and next steps
- Rated 5/5 on Google Reviews
A Specialist Mortgage Broker Who Understands Principal-Level Employment
School principals carry enormous responsibility. You lead staff, manage budgets, drive school improvement, and remain accountable to your community every single day. In most cases, you are also one of the higher earners in the education sector, with a compensation package that reflects the complexity of the role. Yet despite a strong income and a long career in education behind you, principals can still encounter friction when applying for a home loan, particularly when allowances, salary packaging, acting arrangements, or moves between schools complicate how your income appears on paper.
At Education Home Loans, we work with school leaders across Australia. We understand how principal pay is structured in government and non-government systems, how to handle the nuances of leadership income, and how to put forward an application that reflects your genuine financial strength.
- Who We Help
School Leaders We Work With
Principal-level roles span a wide range of settings and employment structures, and we assist school leaders across all of them. We regularly work with:
- Principals of government primary and secondary schools across all states and territories
- Principals of Catholic and independent schools
- Deputy principals and assistant principals
- Acting principals in temporary or ongoing leadership positions
- Executive principals overseeing multiple campuses
- Principals transitioning between schools, systems, or states
- School leaders approaching retirement with property or investment goals
- Principals looking to refinance, upsize, or access equity from an existing property
- Understanding Academic Income
Why Principal Income Can Be More Complex Than It Looks
Principals are generally well-paid, but the structure of that pay can introduce complications that a standard lender assessment is not always equipped to handle cleanly.
Leadership allowances and incentive payments. Principal pay in most systems includes a base salary plus a school-level allowance that reflects the size and complexity of the school. In some systems, performance-linked components or retention incentives also apply. These are legitimate parts of your total remuneration, but they need to be presented carefully to ensure lenders count them at full value rather than treating them as uncertain extras.
Salary packaging. Salary packaging is widespread among principals in Catholic and independent schools and increasingly common in government systems as well. Packaging arrangements affect how your income appears in payslips and tax documents, and they need to be handled correctly so your real financial position is assessed accurately.
Acting arrangements. Many principals spend time in acting roles at a higher classification before securing a substantive appointment. Acting pay can differ from your base salary, and the transition between the two needs to be explained clearly to lenders.
Moves between schools or systems. Principals who have moved between government and non-government schools, or between states, may have employment histories that look fragmented on the surface. We know how to present those transitions in a way that demonstrates career progression rather than instability.
Investment and asset complexity. Many principals are at a stage of their career where they already own property and are looking to refinance, invest, or access equity. Applications involving existing properties, investment loans, or more complex asset structures require a broker who can navigate that complexity confidently.
- How We Present Your Case
How We Present Your Case to Lenders
A principal’s application often has more moving parts than a standard teaching application, and that is exactly where our experience matters most. Here is how we work for you:
- Documenting base salary and leadership allowances together so lenders see your complete remuneration, not just the base figure
- Handling salary packaging correctly so your real take-home value is reflected in the assessment rather than understated
- Presenting acting arrangements with the right context so lenders understand your income trajectory and employment continuity
- Explaining transitions between schools and systems as evidence of career progression
- Navigating applications that involve existing properties, equity access, or investment structures
- Matching you with lenders whose policies suit senior education professionals and higher-income borrowers
- Requirements
What You Will Generally Need to Apply
Even at principal level, a well-prepared application file makes a meaningful difference to how quickly and smoothly the process moves. Lenders will generally want to see:
- Employment evidence including your current contract or a letter from your employer or system confirming your role, classification, school, and total remuneration. For acting principals, documentation of both your substantive and acting classifications is helpful.
- Income documentation including two to three recent payslips that reflect your full remuneration, including allowances. Your most recent group certificate or tax return is also typically required, and for salary-packaged employees, additional documentation from your packaging provider may be needed.
- Savings and asset information covering your current savings, existing property, superannuation, and any other assets relevant to the application. Principals seeking to access equity or refinance will need current valuations and existing loan statements.
- Credit and liability information covering all existing commitments including mortgages, investment loans, car finance, credit cards, and any other obligations.
- Proof of identity and residency confirming you are an Australian citizen, permanent resident, or hold an eligible visa.
We help you bring this together in the right format before anything is submitted.
- Deposit Options and Government Support
Pathways to Help You Get Into the Market Sooner
Many principals applying for a home loan are not first home buyers. You may be upsizing, refinancing, purchasing an investment property, or accessing equity to fund renovations or other goals. We work across all of these scenarios.
For those who are purchasing for the first time or with a smaller deposit, the following options may be relevant:
Low-deposit loans allow some borrowers to purchase with less than 20 per cent down, with LMI applying in some cases depending on the lender and profile.
Family guarantee arrangements can reduce or remove LMI requirements by using a family member’s property as additional security.
First Home Guarantee allows eligible first home buyers to purchase with as little as 5 per cent deposit without paying LMI, subject to income and price caps.
First Home Owner Grant provides a state-based grant for eligible first home buyers purchasing new properties, with eligibility varying by state and territory.
For principals with existing property, refinancing and equity access are often more relevant considerations than deposit pathways. We assess your full picture and recommend the approach that makes the most sense for your situation.
- Loan Structures
Loan Structures Worth Considering
At principal level, loan structure is often about optimising an already solid financial position rather than simply getting approved. We help you choose a structure that supports your broader financial goals.
Variable rate loans offer flexibility for extra repayments and refinancing, and work well for borrowers who want to pay down debt aggressively or maintain access to redraw.
Fixed rate loans lock in repayments for one to five years, which suits principals who want certainty or are planning a significant life change such as retirement or a career transition.
Split loans combine fixed and variable portions, giving you stability on part of your debt while keeping flexibility on the rest.
Offset accounts reduce the interest charged on your loan by linking your everyday transaction account to your balance, which is particularly effective for higher-income earners who carry a strong cash buffer.
Investment loan structures for principals purchasing additional property, including interest-only periods, separate offset facilities, and structures that keep investment and owner-occupier debt clearly separated for tax purposes.
Frequently Asked Questions
Does my leadership allowance count as assessable income?
In most cases, yes. Consistent allowances paid as part of your classification and role are generally assessable income when properly documented. We ensure your full remuneration, including allowances, is included and supported in your application rather than left out or treated as uncertain.
I am on a salary packaging arrangement. Does that complicate my application?
It can if it is not handled correctly, but it does not need to. We know how to present packaged remuneration accurately so lenders assess your real financial position rather than just the reduced pre-packaging salary figure that appears on a standard payslip.
I am currently in an acting principal role. Can I apply on my acting salary?
It depends on how long you have been in the acting role and what documentation is available. Some lenders will consider acting income with appropriate evidence. We assess your specific situation and advise on the most realistic pathway forward.
I have moved between government and non-government schools. Does that affect my application?
Not negatively when it is presented correctly. Career moves between systems are common at principal level and reflect progression rather than instability. We present your employment history in a way that tells that story clearly.
I already own a property and want to access equity. How does that work?
Equity access through refinancing is one of the most common requests we handle for experienced school leaders. How much equity is available depends on your current property value, your existing loan balance, and how much a lender will allow you to draw. We assess your position and walk you through realistic options before any application is submitted.
Can I get a home loan close to retirement?
Yes, though lenders will consider your exit strategy and how you intend to service the loan into retirement. Strong superannuation, investment income, or a clear retirement plan can all support an application. We work with lenders whose policies accommodate borrowers at this life stage and structure your application accordingly.
Are there better rates available for principals?
Not as a named product, but higher-income borrowers with strong employment records and solid equity positions are generally well-placed to access competitive rates. The goal is matching you with the lender whose policies and products best suit where you are financially, which often produces a better outcome than a standard application would.
What does it cost to use Education Home Loans?
In most cases, nothing. Our fee is paid by the lender after your loan settles. We do not charge broker fees to clients and are transparent about all costs from the very first conversation.
Popular Loans
