Australian lenders are continuing the theme of offering further discounts for owner occupiers and specifically for first home buyers. In October, FHBA Mortgages has access to some new offers for first home buyers.
Whether you are looking for a low deposit loan, construction loan, fixed rate loan or a special loan for certain professions, we have got you covered.
Keep reading for the details! Our team of expert FHBA Coaches, who are also fully qualified Lending Advisers (Mortgage Brokers), have handpicked some of the more special home loan offers that are currently available through our exclusive first home buyer mortgage broking service – FHBA Mortgages. Regardless of what your financial position is, FHBA is well positioned to provide qualified credit advice for all first home buyers – if you aren’t ready we will tell you what you need to do in order to be ready!
1. Package Fee waived for the life of the loan
One mid-tier lender is offering a special product enabling borrowers to save on their costs associated with the loan, the features include:
- First home buyers only!
- Low variable rate of 3.79% (comparison rate 3.80%)
- Annual package fee ($375) waived for the life of the loan, resulting in savings of $11,250
- Minimum borrowing amount is $150,000
- Maximum borrowing is 95% of property purchase price
- 100% offset account is included in the package (ask your FHBA Coach for more info)
Click below to see if you qualify for this special product.
2. Family Guarantee Loan
- Borrow 100% of the property purchase price
- Get an additional $50,000 cash out for renovations
- Borrow an additional 5% for debt consolidation if you have outstanding personal loans, car loans or credit cards!
- Applicable for construction loans
- Interest rate below 4%
This home loan product is not available for everyone, but it is a great option if your parents are willing to provide their property as a guarantee for your first home loan. This is a good loan option if you currently have other debts which you are looking to consolidate into one easy to manage repayment alongside your home loan.
3. Low 2 & 3 year fixed rate² offer
One mid-tier lender is offering first home buyers a certainty in repayments.
- 2 year fixed rate – 3.64% (comparison rate 4.83%)
- 3 year fixed rate – 3.69% (comparison rate 4.73%)
- 5% must be held in genuine savings³ if you are borrowing more than 85% of the property purchase price
- LMI Capitalisation¹ is allowed up to 95% of the property purchase price
- $0 application fees
Are you looking to fix your interest rate for a period of 2 or 3 years? Then click below to book your complimentary consultation with a FHBA Coach.
4. First home buyers on maternity leave
Are you a first home buyer who is on maternity leave and looking to get your first home loan whilst on maternity leave? This may still be an option even though you don’t have any income. To qualify for this the lenders will usually require:
- A return to work letter from your employer confirming the date you will be resuming your job
- Enough savings to cover repayments during the time you are on maternity leave
- Deposit to cover your contribution to the loan (a minimum of 5%)
Alternatively, if you are still receiving maternity leave pay, either through your employer or from the government, some lenders will even consider this income when determining your borrowing capacity. Click below to find out more about this product:
Glossary of Terms:
¹LMI Capitalisation – Whereby the Lenders Mortgage Insurance premium is not paid upfront by the borrower but instead added onto the total loan balance and therefore paid over the term of the loan by the borrower
² Fixed Rate – A fixed interest rate loan is a loan where the interest rate doesn’t change during the fixed rate period of the loan giving you certainty in your repayments
³ Genuine Savings – Funds to be used as a deposit by a proposed borrower (for a property purchase) have been genuinely saved over time – usually between 3 and 6 months
Every aspiring first home buyer’s situation is different, therefore it is important to get some expert advice on which product is suited to your needs. Are you looking to compare these different home loan products? Perhaps you just want to know your borrowing capacity or get a better understanding of how your first home loan works? Click here to speak with an FHBA Mortgage Broker.
Disclaimer: The information on our website including this page is general in nature and should be solely relied upon. The advertised rates above were true and correct at the time of the publication. The rates do not take into account other fees and charges which you should also consider. 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. You should seek professional advice when obtaining finance and purchasing your first property. Written By, First Home Buyers Australia