There are a variety of finance options available to first home buyers. Our friendly brokers are highly experienced in helping find the ‘right loan for you’, to suit your circumstances.

5% Low Deposit Home Loans

We understand that saving for your first home is not always easy, it is true that lenders generally prefer a 20% deposit however there are many options available for a 90% or even 95% lend! This means that with a 5% deposit, the option for a bank loan is still a possibility. 

A small deposit is a great step towards your home owner dream and may be what enables you to enter the market sooner rather than later.

One thing to consider with a deposit of less than 20%, is that you will need to pay LMI (Lenders Mortgage Insurance).  This is an insurance policy that the lender takes out to protect themselves when there is an LVR (Loan to Value Ratio) above 80%. 

Keystart Loans

Keystart Home Loans, an initiative of the Western Australian Government, aims to make the dream of affordable home ownership a reality for more people. Keystart offers lower upfront costs with deposits as low as 2% and no Lender’s Mortgage Insurance.

You will pay a higher interest rate with a Keystart Loan in comparison to a traditional lender however it is a great option to help you get started in the market and without the cost of LMI.

Guarantor Loans

A guarantor traditionally uses equity in their property to provide additional security for your loan.  This lowers the risk for the lender by bringing the overall LVR to under 80%, which enables the first home buyer to minimise their deposit, interest rate and avoid paying an LMI premium.  

If you have a family member who is able to assist as a guarantor, this could be a great option to help you take your first step into the market. Once you have built enough equity in your property, you can apply to refinance your loans so that your guarantor can be released.

The First Home Owner Grant (FHOG) was a scheme introduced in 2000 designed to make it easier for first home buyers to purchase their first property. Currently, the FHOG is a one-off upfront payment of $10,000 paid by the State Government towards the construction of a new home or the purchase of a brand-new, never lived in property.

Do I qualify?

If you wish to apply for the FHOG, you must meet the Office of State Revenue’s eligibility criteria. We have listed a few of the criteria below;

• You must be a ‘natural person,’ that is, an individual or a couple and not a company or a trust
• Both owners of the property must be at least 18 years old upon making the application
• One of the owners must be an Australian citizen or a permanent resident
• Neither of you must have benefited from the FHOG in the past
• You must live in the property for at least 6 months of the 12 month’s following settlement

Stop renting, own your own home now! Find out if I qualify!

There are a few things to consider when deciding on your first home, established or new?

Established

The first home owners grant is no longer available for the purchase of established homes. If you are buying an established home, you may still be able to apply for the first home owner’s reduced rate of stamp duty (under certain conditions). See the Duties Fact Sheet ‘First Home Owner Rate of Duty‘ for more information.

New

If you build or buy a brand-new home (that has never been lived in), you may be eligible for the State Government First Home Buyers Grant (FHOG) of $10,000. Purchases that fall into this category also include turn-key homes and buying off the plan.