First Home Buyer? Get the Right Start With the Right Loan.

Eligibility for the First Home Owner Grant varies by state but generally requires you to be an Australian citizen or permanent resident, over 18, buying or building a new home, and not having previously owned property in Australia. Grant amounts range from $10,000 to $30,000 depending on your state.

The First Home Guarantee allows eligible first home buyers to purchase with as little as 5% deposit without paying Lenders Mortgage Insurance. The government guarantees the difference between your deposit and 20%. Places are limited each financial year, so it is important to check availability with your broker.

Your borrowing capacity depends on your income, expenses, existing debts, and deposit size. As a general guide, most lenders will lend 5-6 times your annual income, but this varies. A SmartCheck gives you an initial assessment, and your broker can provide a detailed borrowing capacity calculation.

Many states offer stamp duty concessions or exemptions for first home buyers. For example, NSW offers a full exemption for properties up to $800,000, while Victoria offers concessions for properties up to $750,000. Your broker can explain the specific concessions available in your state.

LMI is a one-off insurance premium that protects the lender if you default on your loan. It is typically required when your deposit is less than 20% of the property value. For first home buyers, LMI can be avoided through the First Home Guarantee scheme or by saving a 20% deposit.

Yes, parents can help through a financial gift towards your deposit, or by acting as a guarantor where they use equity in their own property as additional security for your loan. A guarantor arrangement can allow you to borrow up to 100% of the purchase price without paying LMI.

Yes, pre-approval gives you a clear budget and shows sellers you are a serious buyer. Pre-approval typically lasts 3-6 months and involves a credit check. Your first home buyer broker can arrange pre-approval and help you understand exactly how much you can spend.

The FHSSS allows you to make voluntary contributions to your superannuation fund and then withdraw them (plus earnings) to use as a deposit for your first home. You can withdraw up to $50,000 in contributions. The tax advantages of super mean your savings grow faster than in a regular savings account.

Both have advantages. A fixed rate gives you certainty over repayments, which can be helpful when budgeting as a new homeowner. A variable rate offers more flexibility for extra repayments and typically comes with features like offset accounts. Many first home buyers choose a split loan that combines both.

Comparing first home buyer loan rates through OptiCheck does not affect your credit score. Our SmartCheck is a soft enquiry that helps assess your eligibility without leaving a mark on your credit file. A formal credit check only occurs when you submit a full application.