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

By Kelly Emmerton · Wednesday, 30 January 2019 · 3 min read

Fact Checked

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.

Mozo may receive payment if you click products on our site. Mozo does not compare the entire market.

Important disclosures and comparison rate warning*

Important disclosures

Advertiser disclosure

Our goal at Mozo is to help you make smart financial decisions and our award-winning comparison tools and services are provided free of charge. As a marketplace business, we do earn money from advertising and this page features products with Go To Site links and/or other paid links where the provider pays us a fee if you go to their site from ours, or you take out a product with them. You do not pay any extra for using our service.

We are proud of the tools and information we provide and unlike some other comparison sites, we also include the option to search all the products in our database, regardless of whether we have a commercial relationship with the providers of those products or not.

'Sponsored', 'Hot deal' and 'Featured Product' labels denote products where the provider has paid to advertise more prominently.

'Mozo sort order' refers to the initial sort order and is not intended in any way to imply that particular products are better than others. You can easily change the sort order of the products displayed on the page.

We provide only general advice

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the Product Disclosure Statement (PDS) or offer documentation, or seeking independent advice. It is also advised to review Target Market Determination(TMD) of products that you are considering. The TMD can be found on the provider's website.

Comparison rate warning

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.

How Initial Monthly Repayments figures are estimated

Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

Bank Australia - Basic Home Loan

3.89% p.a. fixed rate for 3 years (3.99% p.a. comparison rate*)
Borrow with as little as 5% deposit
Split your loan between fixed and variable rates

Find out more

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 >>

Newcastle Permanent - Discounted Variable Home Loan

3.89% p.a. interest rate (4.29% p.a. comparison rate*)
Borrow with as little as a 10% deposit
No upfront application fee ($395 annual service fee)

Find out more

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 >>

HSBC - Discounted Home Value Loan

3.59% p.a. interest rate (3.61% p.a. comparison rate*)
Borrow with as little as a 10% deposit
No ongoing monthly service fee

Find out more

What we think:

When it comes to home loans, finding a low-interest rate is ideal, but finding a low comparison rate is essential (and often overlooked). With a competitively low-interest rate of 3.59% p.a. which is closely followed by a 3.61% p.a. comparison rate*, what you see is what you get with the HSBC Discounted Home Value Loan. Offering just about everything you’d want in a home loan, from flexible repayment options to a free online redraw facility, no upfront or ongoing fees, and unlimited free extra repayments, the HSBC Discounted Home Value Loan truly lives up to its name.

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

NAB - Base Variable Rate Home Loan Special Offer

3.99% p.a. interest rate (4.03% p.a. comparison rate*)
Borrow with as little as a 5% deposit
No ongoing monthly service fee ($600 upfront fee)

Find out more

If you’re a Big-4-Bank-baby through and through, then the NAB Base Variable Rate Home Loan could be the one for you! With a competitive 3.99% p.a. interest rate (4.03% p.a. comparison rate*), the ability to borrow up to 95% of the property’s value, and an assortment of flexible features to play around with, the NAB Base Variable Rate Home Loan is definitely worth having a second look at.

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

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.

^* 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.

^** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.