First Home Buyer Loans

Loans designed to make life easier for those buying for the first time

Selecting the right loan can be a difficult decision - sometimes the lender with the lowest rate has the highest fees or won't lend you enough to buy the property you want. To help guide you along the way, we've gathered some of the information First Home Buyers need to know.

What First Home Buyers need to know

Know your goals - When do you want to buy? How much do you want to spend? Do you want to keep money in savings? These questions and so many more are important to know to establish your financial and property goals.

Understand your budget - We're not talking about your borrowing capacity here (although we will get into that later), we're talking about your current cash flow. Existing debts and income will help give you an idea of how much cash you're saving and how taking on a home loan will impact your lifestyle.

Your Deposit Matters - When it comes to qualifying for a loan, your deposit is important. The larger your deposit, the better chance you have at avoiding Lenders Mortgage Insurance (LMI) and starting off with some equity in your house.
Low Deposit Options - If you don't have much of a deposit, there are still options available: guarantors, rent-for-savings schemes and government grants and concessions. Read more about Loan Deposit Loans here.

Grants and Concessions - Each state has different legislation and offers varying levels of help for buyers to enter the market. There are two main ways state governments help buyers; the First Home Buyers Grant and Concessions on stamp duty. To see what's available today in your state you can use our stamp duty calculator.

Pre-approval - Getting pre-approval from a lender is the only way you know exactly how much you have been approved to spend on a property. Knowing your exact borrowing limit gives buyers confidence bidding at Auctions or private treaties. It can also give you an advantage on other buyers who would not have their finances organized.

Total Costs - A mortgage broker can walk you through all the 'funds-to-complete' a property purchase. This means you'll know exactly how much you're spending on everything from conveyancers to stamp duty.

Why use a Mortgage Broker to compare loans for first home buyers

A mortgage broker will give any first time buyer the confidence and help needed to successfully purchase their first property with the right home loan. Here are just some of the ways a mortgage broker can help a first time buyer

  • get you a free property valuation
  • offer Insight into any grants or concessions that are either starting soon or coming to an end.
  • organise a quick pre-approval
  • reveal the lenders with low-deposit loans
  • analyse your budget and
  • the broker will ensure the buyers financial goals and budget are matched to the loan choice
  • liaise with all the key parties in the transaction and ensure everything goes smoothly

For more information please visit our Why Use a Mortgage Broker Page.

First Home Buyer home loans summary:

The bigger the deposit, the better off you'll be - you'll save on costs like Lenders Mortgage Insurance and Interest over the course of the loan.

  • there are grants and concessions available for First Home Buyers but they differ in each state
  • not all lenders give first time buyers the same amount, it's important to shop around and check your borrowing capacity
  • a pre-approval is necessary to know exactly how much you've been approved to spend, before you purchase
  • there are options for low deposit home loans, you can read more about them here
  • a mortgage broker can help first home buyers find the most suitable product for their financial goals and property

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