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Securing your first home loan

Securing your first home loan

Buying your first home involves a lengthy process of searching, researching and shopping around. Once you have an idea of what your ideal home looks like, the next step is finding the perfect home loan to match.

Luckily, you can get a little help from Australian lenders, as many of them offer specially-tailored home loans for first home buyers, particularly home loans with low ‘honeymoon’ rates, or with reduced features and lower fees.

Also helpful is the fact some state governments offer concessions on stamp duty, while (at the time of writing).

While buying your first home is certainly no easy process, by seeking the right assistance, asking questions and carrying out your own thorough research you can achieve your dream of buying your first home.

Honeymoon rates

Lenders targeting first home buyers will often offer a discounted interest rate over the course of a ‘honeymoon’ period, which is usually the first 6-12 months of the mortgage. However when the honeymoon period is over, the home loan’s rate often reverts to a standard variable rate, which is generally higher than the average standard variable rate on the market.

Given the broad range of available home loans for first home buyers, it is important to do your research before signing up for one.

Lenders mortgage insurance

Here’s a tip: if you have a small deposit (less than 20 percent of the purchase price), some lenders will charge lenders mortgage insurance. The insurance offers you, the borrower, no protection, but rather is designed to protect the lender should you default on your home loan.

Potentially costing thousands of dollars (depending on your deposit and the purchase price), lenders mortgage insurance can be a substantial added cost of home ownership.

Saving a sizable home deposit on your home loan can help you avoid or reduce paying lenders mortgage insurance when you take out your first home loan.

State government funding

Some state governments offer concessions on some taxes such as stamp duty. For more information about up-to-date concessions and grants visit your state revenue office’s website for all the details.

Finally, before you sign up for a home loan compare many home loan products to make sure you find one with features that will benefit your individual circumstance and needs. To crunch the numbers use the RateCity mortgage repayment calculator.

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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.

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.

How do I apply for Westpac’s first home buyer loan?

If you’re a first home buyer looking to apply for a home loan with Westpac, they offer an online home loan application. They suggest the application can be completed in about 20 minutes. Based on the information you provide, Westpac will advise you the amount you can borrow and the costs associated with any possible home loan. 

You can use Westpac’s online mortgage calculators to estimate your borrowing power. You can also work out the time it might take to save up for the deposit, and the size of your home loan repayments

When applying for a home loan with Westpac, you’re assigned a home finance manager who can address your concerns and provide information. The manager will also offer guidance on any government grants you may be eligible for.