Our database lists [# of products] first home buyer products from among [# of lenders] lenders, with rates from #.##% to #.##%, product fees from $#, and differing LVR percentages.
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First home buyer mortgage rates
| COMPANY | TYPE | TERM | INITIAL RATE | THE OVERALL COST FOR COMPARISON IS | PRODUCT FEE | LOAN TO VALUE (LTV) |
|---|---|---|---|---|---|---|
| UBANK | 2 year Offset Tracker at BEBR + 1.22% for 2 years Residential Purchase Offset | 2 years | 5.97% | 6.9 APRC | £1749.00 | 75% |
| UBANK | 5 year Offset Tracker at BEBR + 1.25% for 5 years Residential Purchase Offset | 5 years | 6.00% | 6.7 APRC | £1749.00 | 75% |
| UBANK | 2 year Tracker at BEBR + 0.15% for 2 years Rate | 2 years | 4.96% | 6.7 APRC | £999.00 | 60% |
| UBANK | 2 year Tracker at BEBR + 0.36% for 2 years Rate | 2 years | 5.11% | 6.7 APRC | £999.00 | 75% |
| UBANK | 2 year Tracker at BEBR + 0.76% for 2 years Rate | 2 years | 5.51% | 6.8 APRC | £999.00 | 85% |
| UBANK | 2 year Tracker at BEBR + 1.10% for 2 years Rate | 2 years | 5.85% | 6.8 APRC | £999.00 | 90% |
| UBANK | 2 year Tracker at BEBR + 0.50% for 2 years Premium Exclusive Rate | 2 years | 5.25% | 6.7 APRC | £0.00 | 75% |
| UBANK | 2 year Tracker at BEBR + 0.35% for 2 years Rate | 2 years | 5.10% | 6.6 APRC | £1999.00 | 60% |
| UBANK | 2 year Tracker at BEBR + 0.55% for 2 years Rate | 2 years | 5.30% | 6.7 APRC | £1999.00 | 70% |
| UBANK | 2 year Tracker at BEBR + 0.57% for 2 years Rate | 2 years | 5.32% | 6.7 APRC | £1999.00 | 75% |
| UBANK | 5 year Tracker at BEBR + 0.60% for 5 years Rate | 5 years | 5.35% | 6.4 APRC | £999.00 | 60% |
| UBANK | 5 year Tracker at BEBR + 1.00% for 5 years Rate | 5 years | 5.75% | 6.6 APRC | £999.00 | 85% |
| UBANK | Residential Remortgage Offset Tracker at BEBR + 1.22% | 2 years | 5.97% | 6.9 APRC | £1749.00 | 75% |
| UBANK | Residential Remortgage Offset Tracker at BEBR + 1.25% | 5 years | 6.00% | 6.7 APRC | £1749.00 | 75% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.15% | 2 years | 4.96% | 6.7 APRC | £999.00 | 60% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.36% | 2 years | 5.11% | 6.7 APRC | £999.00 | 75% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.76% | 2 years | 5.51% | 6.8 APRC | £999.00 | 85% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.50% Premium Exclusive | 2 years | 5.25% | 6.7 APRC | £0.00 | 75% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.35% | 2 years | 5.10% | 6.6 APRC | £1999.00 | 60% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.55% | 2 years | 5.30% | 6.7 APRC | £1999.00 | 70% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.57% | 2 years | 5.32% | 6.7 APRC | £1999.00 | 75% |
| UBANK | Residential Remortgage Tracker at BEBR + 0.60% | 5 years | 5.35% | 6.4 APRC | £999.00 | 60% |
| UBANK | Residential Remortgage Tracker at BEBR + 1.00% | 5 years | 5.75% | 6.6 APRC | £999.00 | 85% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 4.89% | 6.6 APRC | £999.00 | 60% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.24% | 6.6 APRC | £0.00 | 60% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.11% | 6.7 APRC | £999.00 | 75% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.25% | 6.6 APRC | £0.00 | 75% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.61% | 6.7 APRC | £99.00 | 80% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.21% | 6.7 APRC | £999.00 | 90% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.95% | 6.8 APRC | £0.00 | 90% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 5 years | 5.35% | 6.3 APRC | £999.00 | 60% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 5 years | 5.75% | 6.5 APRC | £999.00 | 85% |
| UBANK | Existing Residential Mortgage Customers Reward Offset Tracker | 2 years | 5.97% | 6.9 APRC | £1749.00 | 80% |
| UBANK | Existing Residential Mortgage Customers Reward Offset Tracker | 5 years | 6.00% | 6.7 APRC | £1749.00 | 80% |
| UBANK | Existing Residential Mortgage Customers Reward Tracker | 2 years | 5.10% | 6.6 APRC | £1999.00 | 70% |
| UBANK | Existing Residential Mortgage Customers Reward Offset Tracker | 2 years | 6.65% | 7.0 APRC | £1999.00 | 70% |
| UBANK | Existing Mortgage Customers Reward Buy-to-Let Tracker | 2 years | 5.69% | 8.8 APRC | £1795.00 | 65% |
| UBANK | Existing Mortgage Customers Reward Buy-to-Let Tracker | 2 years | 5.77% | 8.9 APRC | £1795.00 | 75% |
| UBANK | Existing Mortgage Customers Reward Buy-to-Let Tracker | 2 years | 6.30% | 8.9 APRC | £0.00 | 75% |
| UBANK | Existing Mortgage Customers Reward Buy-to-Let Tracker | 2 years | 5.90% | 8.8 APRC | £1795.00 | 60% |
First home buyer mortgage rates FAQs
How much do most first-time home buyers put down?
First home buyers in Australia should ideally put down a deposit of 20% of the property's purchase price. However, some lending firms only need 5%. Here’s what you need to know:
What is the definition of a first home buyer in Australia?
A first home buyer is an individual or a couple purchasing their first residential property. They must not have previously owned or co-owned a home in Australia and are at least 18 years old.
Typical deposit range for first home buyers
First-time home buyers in Australia typically need a deposit ranging from 5% to 20% of the property's purchase price. A 20% deposit is preferable as it avoids lenders mortgage insurance (LMI). Some lenders may accept 5%, but a smaller deposit usually means a larger loan and additional lenders mortgage insurance costs.
Depending on location and eligibility, buyers can access government grants and assistance, allowing deposits as low as 2%. For example, in Victoria, buyers might qualify for several incentives:
- First Home Owner Grant (FHOG)
- Stamp Duty exemption
- Principal Place of Residence (PPR) concession
Members of the Australia Defence Force may be eligible for the Defence Home Ownership Assistance Scheme (DHOAS).
Factors influencing deposit amount
- financial position: individual savings and income stability
- government schemes: grants and initiatives can reduce deposit requirements
- lender requirements: different lenders may have varying minimum deposit requirements
Home Guarantee Schemes
The HGS is a government initiative designed to assist eligible first-time buyers in purchasing their homes with reduced deposits. These schemes aim to make homeownership more accessible by offering guarantees that lower the required deposit and avoid lenders mortgage insurance (LMI).
- First Home Guarantee (FHBG): allows deposits as low as 5%
- Family Home Guarantee (FHG): allows deposits as low as 2% for eligible single parents
- Regional First Home Buyer Guarantee (RFHBG): supports regional buyers with low deposits
The amount most first-time buyers put down varies based on individual circumstances and available government support. Understanding these factors can help buyers make informed decisions and secure the best possible first home buyer mortgage rates.
What is LVR and how does it impact my home loan?
Loan-to-value ratio (LVR) is the percentage of a property's value that a lender will finance. It directly impacts first home buyer mortgage rates and borrowing power.
If you're buying your first home, it's important to learn how LVR works. Consider the following:
LVR calculation
- imagine the house costs $500,000
- you have saved $100,000 for a deposit
- you need to borrow $400,000 to buy the house
- LVR is calculated like this: ($400,000 ÷ $500,000) x 100 = 80%
Impact on borrowing power
- lower LVR: less risk for lenders, potentially lower interest rates
- higher LVR (more than 80%): higher risk, likely higher interest rates, and may require lenders mortgage insurance or LMI
Benefits of a low LVR
- lower interest rates
- higher home equity from the start
- reduced risk for lenders
A lower LVR usually means better first home buyer mortgage rates. Keeping an eye on your LVR can help you get a better deal on your home loan. Also, different lenders might give different valuations of the house, which can change your LVR. It's a good idea to compare valuations from multiple lenders to get the best first home buyer mortgage rates.
What loan types are there for first home buyers?
First home buyers in Australia can choose from various mortgage types, each tailored to different financial needs and goals. Knowing these options can help you make an informed decision.
Common loan types
Clients seeking first home buyer mortgage rates have several home loan options, including:
- variable rate loans: interest rates fluctuate based on the Reserve Bank of Australia’s cash rate, offering flexibility but with potential rate increases
- fixed rate loans: interest rates are locked in for a set period (usually 1-5 years), providing repayment certainty but less flexibility
- split loans: combine fixed and variable rates, allowing borrowers to balance stability and potential savings
- low-deposit loans: allow borrowing up to 95% of the property price, suitable for those with limited initial savings
Additional features
- offset accounts: reduce interest by offsetting your loan balance with savings
- redraw facilities: access extra repayments made on your loan
- flexible repayments: options for weekly, fortnightly, or monthly repayments
- package loans: bundle your home loan with other financial products for potential discounts
Choosing the right loan type and understanding additional features is important for securing the best first home buyer mortgage rates. Each loan type offers distinct advantages, and the right features can provide financial flexibility and savings.
How do you buy your first home?
Before looking for the most competitive first home buyer loans that Australia offers, it's essential to understand the steps involved in buying a home. Below are key considerations:
Steps to buying your first home
Here's a simplified guide to help you navigate the process.
- research early: investigate market trends and property values, and compare first home buyer mortgage rates and determine affordability
- get pre-qualified and pre-approved: provide financial details to your lender to determine your borrowing capacity
- secure a real estate agent: find an experienced agent to guide you through the property search
- shop for your home and make an offer: tour homes within your budget and make a competitive offer
Eligibility requirements
- Australian citizen or permanent resident
- at least 18 years of age
- first-time home buyer
- property must be primary residence
- meet income and asset criteria
Documents needed
- proof of earnings and employment: income slips, tax returns, and work contracts
- identity verification: driver’s licence, passport, and proof of age card
- First Home Owner Grant documentation: required if you are eligible for the FHOG
- financial assets: bank statements and asset records
- insurance proof: building and contents insurance or lender’s mortgage insurance
- debt information: credit card balances and loan statements
Buying your first home involves several steps and documentation. By following these steps and ensuring you have all necessary documents, you can secure favourable first home buyer mortgage rates and make the home buying process smoother.
