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Teachers Mutual Bank Home Loan Review

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Home Loan Experts’ Review:
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Founded: 1966

Owned by: Customer-owned

Funded by: Retail deposits and wholesale capital markets

LMI Provider: Genworth

Lender type: Mutual Bank, Customer Owned

Teachers Mutual Bank (TMB) is a customer-owned lender that focuses on the education sector. They have low interest rates and occasional special offers which beat the major banks.

The main problems are that not everyone is eligible to join and they’re not able to service other customer types well, such as business owners.

Don’t assume because you’re a teacher that TMB will offer you the best deal around. Often other lenders have special discounts which beat industry lenders like TMB.

How do Teachers Mutual Bank’s home loans compare?

They’re great at

But they’ve got some drawbacks…

  • If you aren’t in the education sector, you can’t be a member!
  • Other banks tend to offer better interest rates for larger home loans
  • They don’t have a business banking division, and don’t often work with self-employed borrowers
  • They’re unlikely to help if you have a bad credit history
  • They don’t have a large branch network

Our award-winning brokers get tough loans approved

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Who is qualified to join TMB?

You can join Teachers Mutual Bank if you’re a family member of an existing member or you work in the education sector.
Eligible education employees include:

  • Full time, Part time, Casual or Contract employees
  • Teachers and other education sector staff
  • Studying Education at University
  • Preschool
  • School Staff including Government & Private Schools
  • TAFE Employees
  • University Staff

Eligible family members include:

  • Brother
  • Sister
  • Child
  • Parent
  • Grandchild
  • Grandparent
  • Spouse

You’d be surprised to find that most people have a family member in the education sector. Unfortunately if you have Aunts and Uncles that are members you can’t consider them to be family for the purposes of joining TMB.

What home loans types do they have?

TMB has a range of variable rate home loans including their Classic Home Loan which is a basic loan with a low rate and their Solutions Plus Home Loan which is a professional package with bigger discounts for larger loans.

However TMB tends to be most competitive with their fixed rate home loans. Their Fixed Options Home Loan often has the lowest rate on the market and is a good choice if you want the security of locking in your interest rate.

If you’re choosing a variable rate, then in most cases other lenders are comparable to or better than TMB.

Teachers Mutual client story: Dean & Anne, NSW

Goal

Situation

Refinance, equity cash out, gifted deposit.

Background

Dean and Anne wanted to give their kids a headstart in the property market.

Over the past 20 years, their home had grown considerably in value so they decided to cash out some equity to as a gifted deposit.

Solution

Both Dean and his wife were full time permanents and were earning strong incomes with no debt except for their mortgage.

They were also refinancing at just over 11% of the property value (LVR), which is considered very low with all lenders.

As strong customers, they were able to refinance their mortgage and cash out $180,000 for their children.

Compare TMB to other lenders

Not sure which lender is right for you? Our Home Loan Experts can help!

Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.

  • Brady

    I’m a teacher but on probation so can I still borrow?

  • Teacher home loans are available even if you’re still on probation. However, note that you’ll need to meet all other standard lending criteria and have a clear credit history. If you’re borrowing more than 90% Loan to Value Ratio (LVR), you may need to provide additional supporting documents to get loan approval.

  • brisco

    I work full-time in the education industry but my husband is a casual teacher. We have 2 children and our combined salary is $52,000 a year. We’re planning on buying a house of anywhere between $390,000 to $410,000. Are we eligible?

  • Hi brisco,
    Being a casually employed teachers means you’re in an unusual position in that unlike many other types of casual workers, there is no shortage of available work. Despite this many lenders apply their standard casual guidelines which means that they use only 50% of your income or do not accept any income unless you have a 12 month history. It’s not certain that you can borrow at a high LVR with TMB but we do have a lender that can lend up to 90% of the property value as long as your husband has at least a 3 month casual history, with good interest rates there as well. Please give us a call if you’d like to discuss.

  • roby

    I’ve been a teacher for 5 years and I would like to get a home loan with TMB. Not sure how much LMI I could be paying. I have a 10% deposit only and I can’t go for a no LMI home loan right now. Can you help me with some estimations?

  • Hey roby,

    You can actually simply input your personal situation and loan details into our LMI calculator to get a reliable estimate of the amount you’ll likely be paying in LMI premium. There can huge differences in your LMI premium depending on your Loan to Value Ratio (LVR) and the lender you choose so you can use the calculator to also find the cheapest LMI premium from our panel of lenders and then speak with one of our mortgage brokers to find out if you qualify. Here’s the link to the calculator:
    https://www.homeloanexperts.com.au/lenders-mortgage-insurance/lmi-calculator/

  • Ernest

    Hello Home loan experts,
    I’m a teacher and so I wanted to get a home loan through Teachers Mutual Bank but I found out that they don’t accept rent as genuine savings. They also wouldn’t accept a personal loan to meet their serviceability requirements. I’m not sure what I should do, please help me.

  • Hi Ernest
    Yeah TMB don’t accept rent as genuine savings and personal loans as funds to complete the application too. However, we know of banks that can accept both, though you may need to provide a 3 to 6 months rental ledger. Please call 1300 889 743 to discuss this with one of our mortgage brokers directly.