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Free calculator 2026–27 rates

How much can a teacher borrow?

Estimate how much you could borrow on a teacher's salary, with a partner's income, HECS, expenses and a 3% serviceability buffer, and what the repayments look like.

⚙Your details

Your salary

$

Leave at 0 if you're buying on your own.

None
$

Car loans, personal loans, buy now pay later.

$

Lenders assess the limit, not the balance: about 3.8% of it a month.

% p.a.

An example rate. Use the rate you've been quoted.

% p.a.

APRA expects lenders to test you at least 3 percentage points above the loan rate.

30 years

Indicative borrowing range

$415.9k – $455.0k

Tested at 9.00% over 30 years · one income

Monthly repayment

$2,728

At 6.00% on $455.0k

Household take-home

$5,761

Per month, after tax

Left for a loan

$3,661

After expenses and debts

HECS reduces it by

$36.3k

$292 a month in repayments

What this means

After tax, HECS, living costs of $2,100 a month and other commitments, your household has about $3,661 a month spare. A lender tests whether you could still pay at 9.00%, which supports a loan of roughly $415,895 to $455,044. The lower figure assumes the lender loads your expenses by 15%, as many do.

At the actual 6.00% rate, the repayments would be about $2,494 to $2,728 a month, or $1,259 a fortnight at the top of the range.

Your HECS-HELP repayment of $292 a month cuts your borrowing power by about $36,281. Paying off a small remaining balance before applying can lift it, and some lenders ignore a debt that's nearly repaid.

Interest rateTested atCould borrowRepayment / month
5.00%8.00%$498,987$2,679
5.50%8.50%$476,177$2,704
6.00%9.00%$455,044$2,728
6.50%9.50%$435,437$2,752
7.00%10.00%$417,218$2,776
8.00%11.00%$384,469$2,821

How your borrowing power grows up the NSW scale

StepSalaryTake-home / monthCould borrow (top of range)
Step 1 · Graduate (entry)$92,882$5,761$455,044
Step 2 · Graduate$99,889$6,071$493,506
Step 3 · Proficient (entry)$104,156$6,259$516,928
Step 4 · Proficient$108,421$6,448$540,340
Step 5 · Proficient$115,972$6,781$581,788
Step 6 · Proficient$124,696$7,167$629,675
Step 7 · Proficient (top of incremental scale)$133,422$7,546$676,805

This is not a credit assessment or an offer of credit. Lenders use their own expense benchmarks (HEM), income shading, buffers and debt-to-income limits, and look at your credit history, deposit and the property. Assumes an Australian resident on 2026–27 tax rates with salary as the only income, a principal-and-interest loan, and no lenders mortgage insurance, stamp duty or first-home-buyer schemes. Our living-cost estimate is rough and HEM-style, not the real HEM table. Speak to a licensed mortgage broker or lender before you make an offer. Pay data: Crown Employees (Teachers in Schools and Related Employees) Salaries and Conditions Award 2024, verified 16 October 2026.

In short

A teacher's borrowing power depends on income after tax, HECS-HELP, living costs, other debts and the lender's test rate: usually your loan rate plus a 3% buffer. A HECS debt matters: on a $92,882 graduate salary it takes about $3,503 a year, roughly $292 a month, out of what a lender counts as available.

How to use the borrowing power calculator

  1. 1

    Enter your salary and your partner's

    Pick your state and step, or type your salary. Add a partner's income if you're applying together.

  2. 2

    Add HECS and other debts

    Switch on HECS-HELP for each person with a debt, and add credit card limits, car loans and personal loans.

  3. 3

    Enter living expenses and dependants

    Use your real monthly spending. Lenders compare it with a benchmark and use whichever is higher.

  4. 4

    Set the interest rate

    Enter the rate you expect to pay. The calculator adds a 3% serviceability buffer, as lenders do.

  5. 5

    Read your estimate and repayments

    See an estimated borrowing range and what the repayments would be at your actual rate.

How lenders assess a teacher's income

Lenders look at how much income you have left each month after tax, existing debts and living costs, and whether that covers the repayments on a new loan at a higher test rate. Teachers in permanent roles are usually seen as stable borrowers: salaries are set by public agreements, rise on known dates and are paid fortnightly.

  • Base salary from your state's pay scale is counted in full for permanent and long-term temporary teachers.
  • Allowances and incentives such as rural payments may be counted in part, or only if they're ongoing.
  • Casual relief income is often averaged over a period, and some lenders want a track record first.
  • HECS-HELP is treated like a debt repayment, because it reduces your take-home pay.

The 3% serviceability buffer

Banks test whether you could still make repayments if rates rose. The standard approach is to assess the loan at your interest rate plus 3 percentage points. If your rate is 6%, the lender checks you could afford repayments at 9%. That's why borrowing power is lower than you might expect from today's repayments alone.

Worked example

What HECS does to a NSW graduate's monthly income

Salary (Step 1, from Oct 2026)
$92,882
Take-home, no HELP debt
about $6,053 a month
Take-home with a HELP debt
about $5,761 a month
Compulsory HELP repayment
$3,503 a year
Monthly income lost to HELP about $292

Site tax engine, 2026–27 rates. At the top NSW step ($133,422), HELP takes about $9,658 a year, roughly $805 a month.

Teacher-specific things to raise with a lender

  • Known pay rises. Your next scheduled step and any agreed pay rise. NT teachers have 4.3% due from January 2027, and Tasmanian teachers 3% from March 2027. Some lenders consider these with evidence.
  • Back pay coming. If you're owed back pay, such as Victorian teachers under the VGSA 2026 once approved, it's a one-off and is unlikely to be counted as income.
  • Part-time work. Lenders use your actual FTE salary. If you plan to drop days after a baby, tell your lender: they're required to consider foreseeable changes.
  • Rural and remote housing. If you're in subsidised housing (for example a 100% rental concession in remote NT), lenders treat your living costs differently.
  • Professional packages. Some lenders offer discounts or waive lenders mortgage insurance for some professions. Whether teachers qualify varies, so compare offers.

What this estimate is and isn't

The calculator gives a realistic estimate based on the same building blocks lenders use: net income, HELP, debts, expenses and a buffered rate. It isn't a pre-approval. Each lender uses its own expense benchmarks and policies, so results differ between banks. A mortgage broker or lender can tell you what you'd actually be offered.

Read teacher home loans in Australia for deposit schemes and lender policies, and HECS-HELP for teachers for how the 2026–27 repayment system works.

Free calculator

How long until your HECS is gone?

See your repayments rise as you move up the scale, and the year your debt is cleared.

Open the HELP calculator

Frequently asked questions

How much can a teacher borrow for a home loan?
It depends on income, HECS, debts, expenses and the lender's test rate, so there's no single figure. The calculator gives a realistic range for your situation using your state's salary and a 3% serviceability buffer.
Does HECS reduce how much I can borrow?
Yes. Lenders treat your compulsory HELP repayment as an expense. On a $92,882 salary it's about $3,503 a year, or $292 a month, which reduces the repayments you can afford.
What is the 3% serviceability buffer?
It's the margin lenders add to your interest rate to test whether you could afford higher repayments. If your loan rate is 6%, you're assessed as if it were 9%.
Do banks see teachers as low-risk borrowers?
Generally, permanent teachers are seen as stable borrowers because their pay is set by public agreements and rises on known dates. Each lender has its own policy, especially for casual and temporary teachers.
Can casual relief teachers get a home loan?
Yes, but it can be harder. Lenders usually want a track record of casual income and may average it over that period; how long a record they need varies by lender. A permanent or long-term temporary contract usually makes approval easier.
Should I pay off my HECS before applying for a home loan?
Sometimes. Clearing HELP removes the compulsory repayment, which can lift borrowing power, but it also uses cash that could go to your deposit. A broker can compare both options with real lender policies.

Guides that go with this tool

Home loans

Home loans for teachers: how lenders see your pay, and how to borrow well

How lenders assess teachers' income, HECS and contracts, and the schemes that cut the deposit you need.

HECS-HELP

HECS-HELP debt for teachers: what you'll repay in 2026–27

What teachers repay on HECS-HELP at each step in 2026–27, plus indexation, the 20% cut and remote relief.