Best home loans for first home buyers: Mozo Editors’ picks

Kelly Emmerton   |   09 Feb 2018

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If you’re planning to break into the property market for the first time this year, you probably already know that saving up a lump sum deposit can be a case of “easier said than done.”

But the good news is that many lenders are looking to attract first home buyers with competitively priced loans that let you borrow with as little as 5% or 10% deposit.

So if you’re looking for a low deposit home loan to help you take that first step onto the property ladder, check out these first home loan picks from our Editors.

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Bank Australia Basic Home Loan
  • 3.94% fixed rate for 3 years (3.92% comparison rate*)

  • Borrow with as little as 5% deposit

  • Split your loan between fixed and variable rates

What we think:

If you want to enter the market with the certainty of a fixed rate behind you, then check out Bank Australia’s Basic Home Loan. With a low interest rate and no upfront application or ongoing service fees, this is a budget friendly option which lets you borrow up to 95% of the property’s value.

Where do I get it? Find out more at Bank Australia >>

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Newcastle Permanent Discounted Variable Home Loan
  • 3.84% interest rate (4.22% comparison rate*)

  • Borrow with as little as a 10% deposit

  • No upfront application fee ($395 annual service fee)

What we think:

There’s no reason you should miss out on features for the sake of great value, right? The Newcastle Permanent Discounted Variable Home Loan Premium Plus Package is available for loans from $150,000 and has a low interest rate and no upfront fee. It also packs a full offset account, plus free extra repayments and a redraw facility.

Where do I get it? Find out more at Newcastle Permanent >>

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MOVE Bank Straightforward Home Loan
  • 3.59% interest rate (3.62% comparison rate*)

  • Borrow with as little as 10% deposit

  • Choose fortnightly or monthly repayments

Jump into the market with a seriously low interest rate thanks to the Move Straightforward Home Loan. With no ongoing service fees to drain your budget and a couple of key features like free extra repayments and a redraw facility on offer, this is a cost-effective option that allows you to borrow up to 90% of the property’s value.

Where do I get it? Head over to Move to find out more >>

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IMB Bank Accelerator Home Loan
  • 3.74% introductory rate for 2 years (4.69% revert rate, 4.57% comparison rate*)

  • Borrow up to 95% of the property’s value

  • No ongoing service fee (upfront fees apply)

Don’t want to wait around before purchasing your dream home? Then check out the IMB Accelerator Home Loan. You’ll only need a 5% deposit to enter the market with this loan, and you can borrow up to $5 million. There’s no annual service fee to worry about, plus you’ll get to make use of handy features like an offset account, free extra repayments and a redraw facility.

Where do I get it? Find out more at IMB >>

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Hunter United Platinum Home Loan
  • 3.87% interest rate (3.97% comparison rate*)

  • Borrow up to 90% of the property's value

  • No upfront application fee (monthly fee applies)

The Hunter United Platinum Home Loan comes with a host of handy features, including free extra repayments, a redraw facility (first redraw of each month is free), an offset account and the chance to take a repayment holiday. Add the low interest rate, no upfront fees and the chance to borrow with just a 10% deposit, and this one is a great pick if you’re after $300,000 or more.

Where do I get it? Find out more at Hunter United >>

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

Didn’t find quite what you were after? Head over to our first home loan comparison table to take a look at some more options.

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