Compare First Home Loans

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Compare and get the right loan for you

Finding the perfect property for your first home can be an exciting step however it is also important to find the home loan that matches your unique situation and meets your financial goals. Below you can compare the features of the different loans that suit buyers who are purchasing for the first time. There are plenty of hot home loan deals out there in the competitive home loan market that offers no ongoing fees, a low-interest rate and let you borrow at least 95% of the property value.

Your FHBA Broker/Coach can assist you to find the most suitable lender for your circumstance, start comparing the different loan options below:

TYPES OF LOANS

Variable Rate Loans

Variable home loans are the most common loans for borrowers that are offered by lenders. Most first time home buyers take this loan. The rate fluctuates according to the cash rate, as set by the Reserve Bank, however there is nothing stopping the lenders from moving their rates up or down at their own discretion. The features and rates offered by different lenders depend on the amount you are borrowing and the strength of your application.

FHBA Mortgages rates from 3.63%*
Maximum Loan Term 30 – 40 years
Construction available Yes
Extra repayments Yes
Redraw facility Yes

Fixed Rate Loans

Fixed rate loans are gaining popularity as interest rates remain at record lows. If you are looking for security through certainty of repayments, then a fixed rate home loan may be something that you will seriously consider for your first home loan. The fixed home loan has fixed interest rate for an initial period and the repayment period is also fixed which varies from 12 months to 10 years. Generally, you will be able to lock your repayment between 1-5 years, at a competitive rate. It gives stability to the first home buyers in your initial first home life.

FHBA Mortgages rates from Fixed for 3 years from 3.64%*
Maximum Loan Term 30 – 40 years (Fixed period 1-10 years)
Construction available Depends on lender
Extra repayments Limited
Redraw facility No

Split Loans

Split loans offer the best of both worlds. This option provides security and flexibility – a great option for those that can’t decide whether to choose a variable or fixed rate loan. A split loan allows you to allocate a portion of your loan amount to a variable interest rate, and the rest of the loan to a fixed rate. You are able to take advantage of the security of a fixed rate but with the flexibility of a variable rate, as well as provide you some security if interest rates were to rise in the future. Split loans are particularly effective where you are constructing, many first home buyers choose to fix the land portion and keep the construction portion variable.

FHBA Mortgages rates from Fixed for 3 years from 3.64%*variable 3.69%* fixed
Maximum Loan Term 30 – 40 years (Fixed period 1-10 years)
Construction available Yes
Extra repayments Yes, variable portion
Redraw facility Yes, variable portion

100% Offset Home Loans

A mortgage offset account is a transaction account that is linked to your home loan. The balance in your account is “offset” daily against your loan balance (that is where the ‘offset’ comes from).The lender essentially treats it as money you have paid off the loan. The more money you have in the account, the less interest you pay on your home loan. 100% Offset Home Loans are effective for those first home buyers who anticipate they will be able to save additional funds after making their minimum monthly repayments. Most lenders will offer 100% offset home loans on variable rates, whilst some even offer then on fixed rates!

FHBA Mortgages rates from 3.64%*
Maximum Loan Term 30 – 40 years
Construction available Yes
Extra repayments Yes
Redraw facility Yes

Construction Loans

A construction loan is a type of home loan designed for first home buyers who are building a home as opposed to buying an already complete or established property. It has a different loan structure to home loans designed for people buying an existing home. A construction loan has a progressive payment system whereby the loan amount is increased as needed to pay for the construction progress payments. The good news is that similar interest rates, features and deposit requirements apply for most loans, including construction loans.

FHBA Mortgages rates from 3.64%*
Maximum Loan Term 30 – 40 years
Construction available Yes
Extra repayments Yes
Redraw facility Yes

Low Doc Loans

A low doc (or low documentation) loan is a type of home loan that can be approved without the normal income verification means, i.e. payslips and tax returns. Low doc loans are only available for self-employed first home buyers (i.e. those that operate under an ABN). For a full-doc (standard) loan most lenders will require you to provide tax returns for income verification purposes, for a low-doc loan you are required to complete a self-verification income form, provide BAS statements, business bank account statements or an accountant’s declaration.

FHBA Mortgages rates from 4.30%*
Maximum Loan Term 30 – 40 years
Construction available Yes
Extra repayments Yes
Redraw facility Yes

Credit Impaired Loans

Credit impaired loans (also known as bad credit home loans) tend to suit borrowers who have experienced credit problems in the past – these may make it virtually impossible for you to get a standard mortgage approved. These type of loans exist for those first home buyers who may have turned their credit problems around and have enough savings to get a home loan.  Plenty of circumstances could affect your credit history; from identity theft, sickness and divorce, to simply forgetting to redirect your bills when moving house, resulting in missed or late payments. We feel you shouldn’t be punished and you should still be able to realise your Great Australian Dream of ownership.

FHBA Mortgages rates from 4.79%*
Maximum Loan Term 30 – 40 years
Construction available Limited
Extra repayments Yes
Redraw facility Yes

No LMI loans

Whilst only a select number of aspiring first home buyers may qualify, it may be possible to get the lender to completely waive your LMI premium – if you are borrowing 80% – 90% of the property purchase price. However, to qualify for the LMI waivers most lenders will usually require you meet their criteria. Certain professionals can also have the LMI waived if they work within specific fields like the medical & accounting industry. Some lenders will also waive LMI on a case by case basis for loans that only slightly go over the LMI threshold. FHBA can provide advice on whether you qualify for a no LMI loan or not.

FHBA Mortgages rates from 3.80%*
Maximum Loan Term 30 – 40 years
Construction available Yes
Extra repayments Yes
Redraw facility Yes

Get started now

Are you interested in one of the loans mentioned above? Or would you like more information on the home loans that are available to you?

Simply complete the form below and a first home buyer expert (Broker/Coach) will be in touch with you:

* The rates mentioned above do not take into account other fees and charges associated with the home loans and are indicative only.

Disclaimer: The information on our website including this page is general in nature and should be solely relied upon. It does not take your personal circumstances. The credit license responsible for the mortgage service offered to clients is Mortgage Australia Group Pty Ltd, Australian Credit License (ACL) number 377294, Australian Business Number (ABN) 99 091 941 749. Mortgage Australia Group Pty Ltd is a member of the Mortgage & Finance Association of Australia (MFAA). FHBA Pty Ltd is an authorised credit representative of Mortgage Australia Group Pty Ltd.

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