Your selected home loans
Getting onto the property ladder can be a daunting task but the right home loan can set you on the right path. Compare the variable and fixed rate home loans currently on offer for first home owners, or read our helpful first time buyer guides that cover everything you need to know from govt grants, stamp duty and the features that can help you pay the loan off faster.
Principal and Interest, LVR <90%
Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required. Advertised rates include Nov RBA rate increase. T&Cs apply.
Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required. Advertised rates include Nov RBA rate increase. T&Cs apply.
Read our Mozo Review to learn more about the loans.com.au Variable Home Loan 90
Owner Occupier, Principal & Interest
A low variable rate loan for home buyers. No establishment or ongoing fees to pay. 100% offset account included. Allows for unlimited repayments, redraws and flexible repayment options.
A low variable rate loan for home buyers. No establishment or ongoing fees to pay. 100% offset account included. Allows for unlimited repayments, redraws and flexible repayment options.
Read our Mozo Review to learn more about the G&C Mutual Bank First Home Buyer Loan Special
Owner Occupier, Principal & Interest, LVR 80-95%
Read our Mozo Review to learn more about the St.George Basic Home Loan Special Offer
Read our Mozo Review to learn more about the QBANK FHBG Special Offer Classic Home Loan
Owner Occupier, Principal & Interest
Read our Mozo Review to learn more about the Community First Bank Basic Variable Home Loan
Advantage Plus, Owner Occupier, Interest Only, LVR >90%
Read our Mozo Review to learn more about the Unity Bank First Home Buyer Variable Home Loan
^See information about the Mozo Experts Choice Home loans Awards
*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.
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Purchasing your first home can be both exciting and terrifying, and between finding the right property and submitting loan applications there’s plenty to get overwhelmed by. Below, we run through everything you need to know to make sure you put your best foot forward.
A competitive interest rate should be high on your priority list, as the lower your ongoing interest rate, the lower your monthly repayments will be. As a first home buyer you'll have the choice of paying either a variable or a fixed interest rate.
A variable rate home loan means that your interest rate will change in line with the market, so over the loan term your repayments could go up or down. Generally, variable rate home loans have lower interest rates and come with features that can help you save money (such as offset accounts and the ability to make extra repayments).
Fixed rate home loans, on the other hand, lock your interest rate for a set period of time (usually between one and five years). While these can be great for managing your repayments, they usually come with fewer features and you could face hefty break fees if you plan to exit your loan early.
If you can’t decide between the two, you can opt for a split home loan. This lets you divide your loan into two accounts, one with a fixed rate and the other with a variable rate. Generally, you can nominate the percentage split, e.g. 60% fixed, 40% variable.
If you can limit the fees you pay, you can reduce the overall cost of your home loan (freeing up your budget to buy furniture and appliances for your new home). Fees can fall into two categories: upfront fees and ongoing.
Upfront fees include:
Application fees: payable to the lender to process your home loan application
Valuation fees: payable to the lender to value your property. Some lenders will waive this fee if you proceed through to settlement
Settlement fee: covers the cost of establishing your loan
Ongoing fees include:
Package fees: if you opted for a home loan package (which includes things like an offset account, credit card or discounted insurance) you might have to pay a package fee. This will be an annual fee charged every year for the life of the loan
Service fees: administrative fees payable to your lender, which can be charged monthly or annually
Offset account fees: some lenders will charge a monthly fee for use of an offset account
There are a number of other fees that you may have to pay depending on your loan. These might include loan termination or loan discharge fees, which are payable at the end of the loan to transfer the title into your name.
If you have a fixed rate home loan, switching to another loan or even paying out your loan early will incur a break fee. The exact amount will be determined by your lender, who will take into account any outstanding balances, how much time is left on your loan, and whether interest rates have changed since you signed up.
You don’t want your first home loan to feel stifling, so make sure you keep an eye out for any features that will make the path to home ownership much smoother. Here are a few of the main ones.
Offset account: a transaction account that is linked to your home loan. The amount in this account is offset against the balance owing on your home loan. For example, if you owe $350,000 and have an offset account with $50,000 in it, you’ll only pay interest on $300,000.
Extra repayments: paying more than the minimum amount required by your lender can save you thousands in the long run and shave years off the life of your home loan.
Redraw facility: many home loans that allow extra repayments come with a redraw facility. This lets you retrieve any extra funds you’ve contributed to your mortgage to use for other purposes.
Repayment holiday: some home loans let you hit pause on your repayments, which can come in handy if you’re experiencing a temporary setback or have to cover a surprise expense. Generally, you will need to be ahead on your repayments to make use of this feature.
Depending on your lender, not all of these features will come free with the loan. So if you don’t plan to use them, consider opting for a no-frills home loan with a lower rate.
The standard term for a home loan is 25 years but most lenders have a maximum loan term of 30 years. As a first home buyer it can be tempting to opt for the longest possible term as this reduces your ongoing monthly repayments, but the catch is you'll pay more in interest over the life of the loan.
There's a lot of financial jargon that gets thrown around in the property buying sphere and as a first time buyer it can all be a bit confusing. Below, we’ve outlined some of the main terms you'll need to understand to get a great home loan deal.
The deposit is the initial contribution you make towards your home purchase. It’s recommended that borrowers have at least 20% of a property’s value saved up for a deposit, though there are options for those who fall short of that requirement.
Your loan-to-value ratio (LVR) is the amount you plan to borrow as a percentage of the total value of the property.
For example, say you’re looking to buy a property valued at $500,000. If you have saved up 10% of the purchase price ($100,000), you will have to borrow the remaining 80%. This means you’ll have an LVR of 80%.
In the past it was possible for first home buyers to borrow up to 100% of the loan amount but lending criteria was tightened following the GFC and the maximum amount major banks will now lend is up to 95%.
Borrowers who don’t meet lenders’ LVR requirements will have to purchase lenders mortgage insurance, which covers the home loan lender if you wind up defaulting on your loan. It shouldn’t be confused with mortgage protection insurance, which protects the home loan borrower.
Just keep in mind that LMI is not transferable between loans. This means that if you want to switch to another lender, you’ll need to have built up 20% equity in your home or you will have to pay the insurance again. This can negate any savings you'd make by switching loans.
Most mortgage lenders have a mandatory genuine savings policy, which means that as an applicant you need to demonstrate that you can save consistently and without outside assistance.
That means having a growing balance (at least three months worth) in a savings account, term deposit or managed fund, and not relying on things like a tax refund, government first home buyer grants, or gifts from family members.
The comparison rate combines the interest rate (the cost of borrowing) with any fees that you may have to pay upfront, such as application, valuation or ongoing fees for a home loan.
In essence, the comparison rate gives you a more accurate picture of how much your loan will cost, and banks and lenders are required by law to list it wherever their home loan interest rates are advertised.
It’s important to note, however, that the comparison rate displayed by a bank is just an example, and it’s typically based on monthly and principal interest repayments on a $150,000 loan over 25 years. If you’re borrowing more or less than this, your comparison rate will be different.
Whether you are borrowing as an individual or you are a joint applicant with a partner, friend or family member, how much you will be able to borrow will depend on your combined income, current assets and liabilities. To get a ballpark for how much you will be able to borrow from a bank or lender, try Mozo's borrowing calculator. Plug in your income and expenses, and it will tell you how much you can afford to borrow at today's average rate and how much your monthly repayments will be.
Another cost you will need to factor in to your home buying budget is stamp duty. This is a fee charged by state and territory governments in Australia. But did you know you could avoid this cost completely if you're a first time buyer eligible for your state's First Home Owner Grant, where you'll receive a one off grant and pay no stamp duty?
If you find you're not eligible for the first home owner grant, then you can use Mozo's first home loan stamp duty calculator which will give you an estimate of how much stamp duty will cost you on your first property.
If you’re over 18 years old, and you’re an Australian citizen or resident who has never owned property in Australia before, you would be considered a first home buyer. That means you would be eligible to take out a first home loan!
But keep in mind the best home loan rates are generally reserved for the best quality borrowers. When deciding whether you’re good quality or not, lenders look at a few things, including how much deposit you have, your credit history, your regular expenses, your savings track record and any other financial commitments you may have. That way, they can determine whether you’re responsible with your money and whether you’ll be able to make your mortgage repayments on time.
Income is also a big factor in your eligibility as a borrower, and if you're young and just starting out, you may want to check out how much you can borrow on a $50,000 income.
While bad credit won’t completely shut off all your options, you can expect higher interest rates and much fewer home loans to choose from.
So before you apply for your first home loan, it’s a good idea to obtain a free copy of your credit report to check your credit score. The next step would be to clear all of your debt, including any personal loans or credit card repayments you may have missed, so you can remove the red mark against your name.
Need help? Check out our guide to paying off credit card debt.
You can - and it’s also a good idea to review your first home loan a few years down the track to make sure you’re still getting a good deal with low interest rates. The home loans market has become very competitive over the past few years, which means by switching loans and refinancing, you could be saving thousands of dollars.
If you’re curious about just how much you could be saving, punch in the numbers on our Switch & Save calculator or head over to our refinance home loans comparison table.
Right here at Mozo! Scroll up to the table at the top of the page and start comparing a variety of first home loans to find a deal that suits you. Once you have a more in-depth look at the table, you’ll begin to notice features mentioned in the guide above, including interest rates, comparison rates, fees, as well as additional benefits like free extra repayments and an offset account.
Select the home loan you want by clicking on the blue “go to site” or green “enquire now” button beside the product of your choice. You’ll then have the opportunity to apply for the loan through the lender’s site.
Start by preparing your documents and getting all the paperwork ready. Requirements will vary from lender to lender, but typically you’ll be asked to provide:
You’ll also need a clean credit record, although bad credit won’t necessarily rule you out.
If you’re an eligible first home buyer, it’s a good idea to complete your First Home Owner Grant application before applying.
And if you’ve decided to take out your first home loan with a guarantor, make sure they also have their documents prepared, including identification, income, assets and liabilities.
You’ll be able to apply for most first home loans online - some can take as little as a few minutes.
So when you’re ready, simply click on the blue “go to site” or green “enquire now” icon next to the home loan you’ve chosen to go with. You’ll already be one step closer to owning your first property ever!
When working out how much to budget for your first home, you’ll also have to factor in government costs like stamp duty, which you are required to pay for any property you purchase in Australia. Stamp duty varies according to which state you’re in and what house you’re buying, so be sure to check out our stamp duty calculator to get an estimate today. There may also be some stamp duty concessions that you’re eligible for as a first home buyer, so look at what’s available where you live.
And if you’ve saved less than 20% deposit, you’ll usually have to pay lender’s mortgage insurance, which could add up to thousands of dollars depending on your deposit amount and the price of the house you’re buying. You can either hand over the money upfront or add the cost to your home loan - although keep in mind that putting the cost of LMI on your home loan will increase the amount of interest you repay over the life of the loan.
Has a good mortgage rate and cash bonus .
Read full reviewHas a good mortgage rate and cash bonus .
don’t trust this bank and there branch managers all they did to us was lie and treat us like second rate citizens. steer clear And try to go somewhere else.
Read full reviewdon’t trust this bank and there branch managers all they did to us was lie and treat us like second rate citizens. steer clear And try to go somewhere else.
I've been with a credit union and Commonwealth Bank (CBA), had experience with NAB and am now with Westpac (for over 10 years) and they are honestly the best banking experienced I've ever had. Westpac has surpassed my experience with any other bank. I was purchasing a property and CBA couldn't match Westpac's rate. NAB promised to beat them but were stuffing us around and dragging their heels as settlement approached. Westpac "rescued" us from the situation by offering us a cheaper rate than NAB would and processing our loan application quickly. However, shortly after we swapped they upped their variable rate 0.2 % above the RBA move and our seemingly fantastic discount vanished within months. We now understood how they could offer us such a fantastic rate and felt a little conned BUT our experience in the 10 plus years later we have overall been extremely happy with them. During this time we have experienced many of their products from their fixed Investment home loans, to their variable principal place of residence loan, to their Life account, Bump Account and Altitude Mastercard -the service has been fantastic throughout. The reason we stay with Westpac is: the security of a big bank (we feel more protected from hacking -something the government $250k guarantee does not cover, and protected by their size and reputation -ie from bankruptcy as the government guarantee only covers to $250k and not things like hacking ), and the service -I've always walked into my local branch and received prompt service no matter what my question, the telephone and web banking service is pretty amazing too as is the app. I fixed my home loan within minutes via the app. There were no hidden surprises either. The phone service is always prompt and helpful. I've never been one to budget but thanks to the app I'm now fully away of my monthly expenditure and income allowing me to calculate an average per month. It also gives you a net position -as in net worth -which is brilliant. It categorises expenditures and sorts them biggest to smallest allowing you to quickly identify something unusual. It also gives you a rolling figure of income and expenses for the past 12 months. You can get your tax data, home loan rates and other info quickly and easily. I also enjoy their Life account (currently offering 4.75% variable on savings) as I've compared it to other savings accounts on the market and they are either riskier (in my opinion) or have more "hoops" to jump through to qualify for bonus interest -or both. I found it easier to qualify for bonus interest with Wespac than with many other products offered by other institutions on the market. I also love their Altitude Rewards Card (if your signing up with Westpac try and ask for the platinum card). I earn points on nearly everything I buy which has allowed me to get hundreds of dollars of gift cards but you can also use points to buy products and even get cash back. You can also set it up so that you automatically direct debit the spending on this credit card from your savings account which means you never pay interest. Another added money saving/earning bonus that's effortless. If you temporarily lose your card you can easily temporarily lock and unlock your card via the app -no need to call the bank. Finally, I've found around 90% of the time Westpac is true to their word and will honour their word. Overall, I have done my research and I highly recommend them - you do pay a premium over a non-big four bank but in exchange they offer security, excellent service, a fantastic app, easier hurdles for bonus interest, automated functionality such as auto direct debit, a huge range of highly flexible products, a great credit card with a good points system.
Read full reviewI've been with a credit union and Commonwealth Bank (CBA), had experience with NAB and am now with Westpac (for over 10 years) and they are honestly the best banking experienced I've ever had. Westpac has surpassed my experience with any other bank. I was purchasing a property and CBA couldn't match Westpac's rate. NAB promised to beat them but were stuffing us around and dragging their heels as settlement approached. Westpac "rescued" us from the situation by offering us a cheaper rate than NAB would and processing our loan application quickly. However, shortly after we swapped they upped their variable rate 0.2 % above the RBA move and our seemingly fantastic discount vanished within months. We now understood how they could offer us such a fantastic rate and felt a little conned BUT our experience in the 10 plus years later we have overall been extremely happy with them. During this time we have experienced many of their products from their fixed Investment home loans, to their variable principal place of residence loan, to their Life account, Bump Account and Altitude Mastercard -the service has been fantastic throughout. The reason we stay with Westpac is: the security of a big bank (we feel more protected from hacking -something the government $250k guarantee does not cover, and protected by their size and reputation -ie from bankruptcy as the government guarantee only covers to $250k and not things like hacking ), and the service -I've always walked into my local branch and received prompt service no matter what my question, the telephone and web banking service is pretty amazing too as is the app. I fixed my home loan within minutes via the app. There were no hidden surprises either. The phone service is always prompt and helpful. I've never been one to budget but thanks to the app I'm now fully away of my monthly expenditure and income allowing me to calculate an average per month. It also gives you a net position -as in net worth -which is brilliant. It categorises expenditures and sorts them biggest to smallest allowing you to quickly identify something unusual. It also gives you a rolling figure of income and expenses for the past 12 months. You can get your tax data, home loan rates and other info quickly and easily. I also enjoy their Life account (currently offering 4.75% variable on savings) as I've compared it to other savings accounts on the market and they are either riskier (in my opinion) or have more "hoops" to jump through to qualify for bonus interest -or both. I found it easier to qualify for bonus interest with Wespac than with many other products offered by other institutions on the market. I also love their Altitude Rewards Card (if your signing up with Westpac try and ask for the platinum card). I earn points on nearly everything I buy which has allowed me to get hundreds of dollars of gift cards but you can also use points to buy products and even get cash back. You can also set it up so that you automatically direct debit the spending on this credit card from your savings account which means you never pay interest. Another added money saving/earning bonus that's effortless. If you temporarily lose your card you can easily temporarily lock and unlock your card via the app -no need to call the bank. Finally, I've found around 90% of the time Westpac is true to their word and will honour their word. Overall, I have done my research and I highly recommend them - you do pay a premium over a non-big four bank but in exchange they offer security, excellent service, a fantastic app, easier hurdles for bonus interest, automated functionality such as auto direct debit, a huge range of highly flexible products, a great credit card with a good points system.
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Your selected home loans