If you still need to purchase a property in Australia, you may be eligible for a first home buyer loan, which can help you secure your property with a smaller deposit. In this home buyer guide, we'll provide an overview of the first home buyer loan and other types of home loans that may be available to eligible first-time buyers.
Understanding the different loan options allows you to decide which suits your financial situation and goals.
Let’s get to the following commonly asked questions:
When buying your first home In Australia, the first home buyers home loan is a type of mortgage with a lower interest rate, allowing for a smaller house deposit. This allows first buyers to own a home sooner and make mortgages more accessible.
Prospective homeowners must meet eligibility criteria, such as being an Australian citizen or permanent resident. They’ll also need to prove that they can repay home loans by demonstrating they earn a specified income.
Eligible first-home buyers need to meet specific criteria, including:
In addition to meeting the eligibility criteria for a first home buyer loan, you may also be eligible for NSW government housing finance incentives, such as the first home owner grant (FHOG), the home guarantee scheme, and stamp duty concessions, which can help reduce the upfront costs of purchasing your first home and also increase your borrowing power.
Tip: When assessing your eligibility for a home loan in Australia, it's essential to consider factors such as comparison rates, conditions that may apply, and the cost of buying, as well as options such as mortgage brokers, loan packages, and annual fees. For eligible first-home buyers, research grants or incentives that can assist with the upfront costs of purchasing a property may also be helpful.
Are you considering home loan applications but need help figuring out where to start? Here are the main steps to prepare for the home-buying process.
Important: Reading the product disclosure statements (PDS) of various home loan options is a crucial step when considering different loan products in Australia, as it can help borrowers to fully understand the terms and conditions, fees, and features of each loan, allowing them to make informed decisions and choose a loan that is best suited for their individual needs and circumstances.
If you’re ready to buy your first home in Australia, you’re probably overwhelmed with home loan choices. Home loan repayments can be confusing and daunting, from principal and interest repayments to fixed and variable rates.
Here are the most common types of loans available to first homeowners:
Tip: WeMoney's home loan comparison calculator is a helpful tool for comparing home loan options in Australia, allowing users to enter necessary details about their loan requirements and receive personalised results that compare interest rates, fees, and features from multiple lenders, helping them to make informed decisions and find the loan that works best for them.
If you’ve told yourself, ‘I’m ready to buy my first home,’ then congratulations! It’s time to start gathering the necessary documents to book an appointment and start the homebuying process.
Here’s what you’ll need to bring to your appointment:
Tip: With WeMoney's range of calculators and tools, including a home loan borrowing calculator, users can get a better understanding of their borrowing power in Australia, helping them to estimate how much they could potentially borrow for a home loan and making it easier to compare loan options and find the right fit for their needs and budget.
If you're ready to purchase your first home in Australia, various home loans and homeowner grants can help first-time buyers. To learn more about home loans, we recommend checking out our regularly updated blog, where you can find financial advice on various topics.
Additionally, you may be interested in reading our article "How to pay off your mortgage faster" for practical tips on reducing your mortgage term and interest charges.
If you enjoy using our app, please take a moment to rate it in the App Store. Your feedback in the past has tremendously helped us at WeMoney to improve the app to help it be the best that it can be. A massive thanks to each one of you for making that happen!
Disclaimer: The author is not a financial advisor and the information provided is general in nature and was prepared for information purposes only. This article should not be considered to constitute financial advice. Accordingly, reliance should not be placed on this article as the basis for making an investment, financial or other decision. This information does not take into account your investment objectives, particular needs or financial situation.