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Enter the property market

Enter the property market

First home buyers looking to enter the property market may be able to save on their home loans by shopping around and comparing home loans online.

RateCity’s first home buyer report released in October 2010 showed a reduction in the number of first home buyers, with around 15 percent of mortgages taken up by first home buyers in August, compared to an average of 26 percent last year.

According to the report there were a number of contributing factors such as:

  • An increase in interest rates. The report showed that it is now 18 points harder for first home buyers nationally in August this year to August 2009, according to the RateCity First Home Buyer Index, with a base of 100 points in August 2009.
  • There was also an increase in the national average mortgage repayments of 21.86 percent for first home buyers, bringing it up to $1,962 per month.
  • The national average first home buyer loan size increased by 4.58 percent in August compared to August 2009. The average loan size is now $283,200.
  • House prices grew on average by 7.39 percent, increasing the national average to $494,000. Overall Melbourne showed the highest increase at 12%, but Sydney’s average price of $590,000 was the highest.
  • The First Home Owner’s Boost ended in December 2009 and $50 million less per month was being paid to first home buyers through First Home Owner’s Grant compared to August 2009.
  • Based on the national average figures, first home buyers are now paying 34 percent of their income towards their mortgage repayments which is an increase of 13 percent.

If you are a first home buyer wishing to enter the property market, don’t be disheartened as you may be able to still enter the market and save at the same time. Just by shopping around and comparing home loans online could mean a big difference to your repayments. For low interest home loans, take a look at the table to the right.

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Learn more about home loans

Can first home buyers apply for an ING home loan?

First home buyers can apply for an ING home loan, but first, they need to select the most suitable home loan product and calculate the initial deposit on their home loan. 

First-time buyers can also use ING’s online tool to estimate the amount they can borrow. ING offers home loan applicants a free property report to look up property value estimates. 

First home loan applicants struggling to understand the terms used may consider looking up ING’s first home buyer guide. Once the home buyer is ready to apply for the loan, they can complete an online application or call ING at 1800 100 258 during regular business hours.

Where can I get all the information about an ANZ first home buyer’s loan?

As a first home buyer, you may require help and hand-holding, and as such ANZ has the buying your first home section on its website full of important information. ANZ also has a form in this section you can fill out to get a free consultation from an ANZ First Home Coach and create your own plan for buying your first home. This coach will help you understand where your current income is being spent and plan for your home loan repayments. You’ll get a clear picture of the costs involved in purchasing a property and how to budget or save for these costs. The coach will help you understand different deposit options and manage your accounts to enhance your savings.

There are three types of ANZ first home loans - Standard Variable, Fixed, and Equity Manager. The features, interest rates, and terms for each are different, and you can compare them here.

When they apply for an ANZ home loan, first home buyers can also get guidance on applying for the First Home Owner Grant (FHOG). This is a one-off government grant that may be available to you when you’re buying your first home. The eligibility criteria for FHOG differs between the different states and territories, which is why it’s helpful to have expert advice when applying.

Can I get a NAB first home loan?

The First Home Loan Deposit Scheme of NAB helps first home buyers purchase a property sooner by reducing the upfront costs required. This scheme is offered based on a Government-backed initiative, with10,000 available places announced in October 2020.

Suppose your application for the NAB first home buyer loan is successful. In that case, you’ll only need to pay a low deposit, between 5 and 20 per cent of the property value and won’t be asked to pay lender's mortgage insurance (LMI). You’ll also receive a limited guarantee from the Australian government to purchase the property.

If you’re applying for the NAB first home buyer home loan as an individual, you need to have earned less than $125,000 in the last financial year. Couples applying for the NAB first home loan need to have earned less than $200,000 to be eligible. To be considered a couple, you need to be married or in a de facto relationship. A parent and child, siblings or friends are not considered a couple when applying for a NAB first home loan.

The NAB First Home Loan Deposit Scheme is currently offered only to purchase a brand new property, rather than an established property.

How can I apply for a first home buyers loan with Commonwealth Bank?

Getting a home loan requires planning and research. If you are considering a home loan with the Commonwealth Bank, you can find the information you need in the buying your first home section of the bank’s website.

You can see the steps you should take before applying for the loan and use the calculators to work out how much you can borrow, what your monthly repayments would be and the upfront costs you’d likely pay.

You can also book a time with a Commonwealth first home loan specialist by calling 13 2221.

CommBank publishes a property report that may help you understand the real estate market. The bank has also created a CommBank Property App that you can use to search for property.  The link to download this app is available on the same webpage.

If you are eligible for the First Home Loan Deposit Scheme, CommBank will help you process your application. The scheme helps first home buyers to purchase a home with a low deposit. You can read details about this scheme here and speak with a CommBank home lending specialist to understand your options.