Table of Contents
What type of loan is generally best for a First Home Buyer?
For First Home Buyers, the simpler the loan the better. From our experience, these are the most common elements and features that First Home Buyers prefer:
- Principal and interest repayments
- Variable interest rate
- Flexibility to make free extra repayments
- Low or no account keeping fees
- Ability to take advantage of government First Home Buyer schemes
- Cashback offers for new purchases
What First Home Buyer schemes are available to me?
- First Home Guarantee (Federal Government): enables First Home Buyers to purchase their home with a deposit of as little as 5% of the purchase price. Without the scheme, loans of this nature would attract a hefty Lender’s Mortgage Insurance premium. The scheme has limited places and participating lenders. For a full list of eligibility criteria visit this page.
- New Home Guarantee (Federal Government): enables First Home Buyers to purchase a brand new home with a deposit of as little as 5% of the purchase price. Without the scheme, loans of this nature would attract a hefty Lender’s Mortgage Insurance premium. The scheme has limited places and participating lenders. For a full list of eligibility criteria visit this page.
- First Home Super Saver Scheme (Federal Government): enables First Home Buyers to salary sacrifice into their superannuation account up to applicable limits for the purpose of saving a deposit. Tax savings typically result in an accelerated savings process. For a full list of eligibility criteria visit this page.
- First Home Owners’ Grant (NSW Government): a $10,000 grant is available for First Home Owners who purchase newly built or off the plan properties. For a full list of eligibility criteria visit this page.
- First Home Owners’ Grant (QLD Government): a $15,000 grant is available for First Home Owners who buy or build a new house, unit or townhouse. For a full list of eligibility criteria visit this page.
