How Your Home Could Help Fund Your Child’s Education

They say the three golden rules of real estate are location, location, location. But if you're thinking long-term for your kids, it’s less about location and more about education.

New insights from Cotality (formerly known as CoreLogic) reveal that properties inside the boundaries of high-performing public schools can attract eye-watering price premiums. And while that might sound like just another case of supply and demand, the story runs deeper.

Let’s unpack why where you live can have such a powerful influence on your child’s education and how your home could do more than just shelter your family.

Homes in Top School Zones Are Selling for a Premium

Cotality, formerly known as CoreLogic, has crunched the numbers across Sydney and Melbourne. Their research confirms what many families already suspect. If your house falls within the catchment of a high-performing public school, chances are it’s worth a lot more than a similar home just outside the zone.

We’re not talking about small change either. In many school zones, buyers are paying over $100,000 more just to secure an address within the catchment.

Parents aren’t paying extra just for a shorter school run. They’re investing in the quality of education their children can access, without needing to fork out for years of private school fees.

While school tuition often rises with inflation, your mortgage may stay steady or even become easier to manage in real terms over time. That makes the premium price tag on the right property potentially good value over the long term.

How Your Home Loan Could Help Cover Education Costs

Of course, not every family wants to move house for a school zone. The good news is, your home loan could still help cover schooling expenses.

Here are three ways to make your home loan work harder for your child’s future.

1. Use an Offset Account to Save on Interest and Fund School Fees

An offset account connects to your home loan and functions like a standard bank account. The money sitting in it reduces the amount of interest charged on your mortgage.

For example, if you have $50,000 in your offset account and a mortgage of $600,000, interest is only charged on $550,000. That means you pay less in interest and can reduce your loan faster.

It also gives you an easy way to grow your education savings. The money stays accessible, but it still works to your advantage in the meantime.

2. Tap Into Your Home’s Equity

Home equity is the difference between your home’s market value and what you still owe on your loan. With nearly 48.8% of suburbs in Australia at record-high property values, you might have more equity than you think.

You could use that equity to request a top-up loan from your lender. The additional funds can be used to cover school expenses or support other educational goals.

It’s also a good time to review your home loan. Refinancing to a better rate or a more flexible loan could lower your repayments and free up funds at the same time. That’s a smart move if you’re planning for school fees.

3. Buy an Investment Property

Investing in property might be another way to support your child’s education. A well-chosen rental property can generate income and offer tax benefits through negative gearing.

Over time, the property's value may increase, allowing you to access more equity when needed. 

Another strategy is rentvesting. This means buying a more affordable home in one location, then renting in the school zone where you want your child to attend. You benefit from the capital growth of your investment while securing access to the right school.

A qualified accountant or tax adviser can help determine if this strategy suits your financial situation.

Osinski Finance: Helping You Plan for Education and Property

Education expenses can climb fast, and so can mortgage pressure if you borrow beyond your means.

That’s why it’s important to understand what you can borrow before you go shopping for a home near a popular school.

At Osinski Finance, we help families make confident property and loan decisions. Whether you're applying for a home loan, planning to invest in a property, or considering your options as a first home buyer, we’ll guide you through the best approach. We also help with refinancing if you're looking to unlock equity or reduce your repayments.

Let us help you build a plan that supports your family’s future. Contact our team and see how your home loan can work smarter for your child’s education.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to your circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.