Buying First Home

Buying your first home is never easy. In fact, it’s probably one of the hardest things you’ll ever do, with years of savings often required for a deposit. But the initial deposit is just the beginning. Your ongoing repayments will be your biggest cost over the next couple of decades.

One of the best ways to save on the ongoing cost of buying a house is by having a good value home loan with a low interest rate and suitable features. Savings.com.au can help you there.

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
FixedMore details

Fixed Rate Home Loan (Principal and Interest) (NSW and ACT only) 3 Years (LVR < 95%)

FixedMore details
NO ONGOING FEES

Basic Home Loan Fixed (Principal and Interest) (LVR 70%-80%) 3 Years

NO ONGOING FEES
VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Evaporate (LVR 60%-70%) (Principal and Interest)

YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*
FixedMore details

Fixed Rate Home Loan 1 Year (LVR < 80%)

FixedMore details

Orange Advantage Home Loan Fixed 1 Year (LVR ≤ 80%)

VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
VariableMore details

Yard Home Loan (Principal and Interest) (Special) (LVR < 80%)

  • Application completely online
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^

Yard Home Loan (Principal and Interest) (Special) (LVR < 80%)

  • Application completely online
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
VariableMore details
100% FULL OFFSET ACCOUNT

Offset Package Home Loan (Principal and Interest) (LVR < 60%)

100% FULL OFFSET ACCOUNT
FixedMore details
FREE REDRAW FACILITY

Fixed Rate OO P&I - 2 Years

FREE REDRAW FACILITY
VariableMore details
UNLIMITED EXTRA REPAYMENTS

Basic Home Loan (Principal and Interest) (LVR < 60%)

UNLIMITED EXTRA REPAYMENTS
VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*
  • Lower your rate the more you pay off your loan
  • Automatic rate match
  • No on-going fees
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*
VariableMore details
NO ONGOING FEES

Basic Flyer Home Loan (Principal and Interest) (LVR 60%-70%)

NO ONGOING FEES
FixedMore details
NO ONGOING FEES

Fixed Rate OO P&I - 3 Years

NO ONGOING FEES
VariableMore details
FREE REDRAW FACILITY

Basic Home Loan (Principal and Interest) (LVR 70%-80%)

FREE REDRAW FACILITY
VariableMore details
NO UPFRONT OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 80%)

NO UPFRONT OR ONGOING FEES
VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 1yr

  • Fast turnaround times, can meet 30-day settlement
  • No ongoing fees
  • Extra repayments + redraw services
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 1yr

  • Fast turnaround times, can meet 30-day settlement
  • No ongoing fees
  • Extra repayments + redraw services
FixedMore details

Tailored Home Loan Fixed (Principal and Interest) 3 Years

FixedMore details

Fixed Options Home Loan (Principal and Interest) 1 Year

VariableMore details
100% FULL OFFSET ACCOUNT

Offset Package Home Loan (Principal and Interest) (LVR 60%-70%)

100% FULL OFFSET ACCOUNT
FixedMore details

Fixed Rate Home Loan (Principal and Interest) 1 Year (LVR > 80%)

FixedMore details

Fixed Rate Home Loan (Principal and Interest) 1 Year

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. Rates correct as of October 27, 2021. View disclaimer.

Buying first home articles

What is a first home buyer loan?

While some lenders offer home loans specifically marketed towards first home buyers, there isn’t really such thing as a ‘first home buyer loan’ – first home buyers simply take out regular owner-occupier home loans. But there are some specific things a first home buyer might want to seek out when searching for a good value home loan, such as:

Read our tips on each of these below.

Interest rates

By far the biggest cost factor of a home loan is the interest rate. You only have to spend a few minutes on one of our calculators to see that having a home loan with an interest rate that’s a single percentage point higher than another home loan’s (e.g. 5% instead of 4%) can cost you tens of thousands of dollars extra in interest over the life of the loan.

Of course, not everyone can qualify for the lowest interest rate on the market. Your interest rate is often determined by a range of factors, including your LVR (loan-to-value ratio), credit rating, income, expenses, suburb etc.

So to give yourself the best chance of qualifying for a low interest rate, you should aim to have at least a 20% deposit (putting your LVR at 80%), have a good track record of paying bills on time and managing your spending, and avoid buying in suburbs that are at risk of price falls (e.g. buying an apartment in an area where lots of other apartment buildings are under construction).

Fees

While its the biggest expense, the interest rate isn’t the only thing that’ll cost you. Most home loans include upfront and ongoing fees, as well as incidental fees, such as the extra costs of lender’s mortgage insurance (LMI) or refinancing. A helpful guide to the relative cost of a home loan is its comparison rate, which takes the upfront and ongoing fees into account on top of the interest rate. So if a home loan’s comparison rate is significantly higher than its advertised interest rate, you might expect high fees.

Features

Flexible features such as an offset account or redraw facility can help first home buyers save thousands in interest over the life of the loan and pay it off loan years earlier. Such features may come with added fees or a higher interest rate on the loan, but given the savings they can help you generate, they can be worth the extra cost.

Guarantor

If you’re really struggling to cough up the dough for a deposit, then you can always speak to someone (usually your parents) about whether they’d consider going guarantor for your home loan.

A guarantor acts as a guardian angel for both you and your lender. They sign an agreement stating that they will make any repayments that you yourself fail to meet, protecting both parties from a default. Having this safety net can help you secure a home loan with a small deposit, exempt you from having to pay LMI or even qualify you for a low interest rate.

Obviously going guarantor isn’t something to be taken likely as it’s a huge responsibility, but if you have someone that’s willing, you should seek out a home loan that will accept them as a guarantor. While most lenders allow guarantors, they often have restrictions around who can act as one. For instance, most do not allow non-family members to go guarantor, but some do.

Save on your first home loan with the First Home Owner Grant

Each state and territory in Australia has a First Home Owner Grant (FHOG) for first home buyers. These grants have varying restrictions but in most cases, they’re applicable to those building or purchasing new property. We’ve written about what the grant offers in each state in greater detail, so it’s worth looking at how much you can qualify for. If you haven’t owned a home in Australia before, you could be granted upwards of $20,000 in some states – likely to be the biggest grant you’ll ever get from a state government!

Read more about First Home Owner/Buyer Grants:

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