How low can interest rates really go in Australia? Since the RBA October 2019’s rate cut to a new record low of 0.75%, first home buyers can now find more home loans with advertised rates below 3% on a variable rate and fixed rate term from a large portion of our lending panel.
In addition, most lenders have relaxed rules around the interest rate they use to assess a first home buyer’s ability to repay the loan over the 30 or 40 year loan term. The good news for first home buyers is that the lender assessment rates range between 5.30% – 5.80%. This has resulted in a 20-30% boost to most first home buyers borrowing capacity. With rates trending downwards, this assessment rate will only fall.
At FHBA, we have access to 40 different lenders with different policies and different home loan features. We can, therefore, find products suitable to most first home buyers. Interest rate cuts may not have been passed on in full to customers but we can still help first home buyers get approved with interest rates below, according to the deposit sizes:
0-5% Deposit (95% + LVR)
| Variable Rate | Fixed Rate |
|---|---|
| 6.14% | 5.99% |
5-10% Deposit (90% -95% LVR)
| Variable Rate | Fixed Rate |
|---|---|
| 5.88% | 5.79% |
10-20% Deposit (80% -90% LVR)
| Variable Rate | Fixed Rate |
|---|---|
| 5.88% | 5.69% |
20% + Deposit ( < 80% LVR) or Parent Guarantor Loan
| Variable Rate | Fixed Rate |
|---|---|
| 5.88% | 5.69% |
30% + Deposit ( < 70% LVR)
| Variable Rate | Fixed Rate |
|---|---|
| 5.94% | 5.69% |
HOW CAN YOU FIND THE BEST HOME LOAN AS A FIRST HOME BUYER?
We are pleased to announce that you can do that RIGHT HERE – using FHBA’s brand new comparison tool!
Simply follow the below steps to compare and therefore choose a home loan product that is tailored to suit your first home loan needs:
- Select your property type (house or apartment), property type (new or established) & suburb you are interested in buying in.
- Enter your name and email so we can send you a FREE property report (valued at $39.95 all FREE) straight to your inbox.
- Enter your own purchase price of the property or use the median for the suburb you have selected and enter the loan amount you are looking for
- Select the features you are looking for in your home loan so only those options appear in the results
- START COMPARING THE OPTIONS FOR FREE! You can compare repayments, interest rates, and the various loan features and if you like a product, simply click the enquire buttons so a Coach can contact you to discuss and potentially even gain a bigger discount than what is advertised
Get started with your first home loan comparison now!
OR
Speak to a Coach who can help you compare over the phone!
Written By,
First Home Buyers Australia
