How to Compare and Choose the First Home Buyer Home Loan?

Compare and Choose the First Home Buyer Home Loan

Purchasing your first home will be your biggest purchase. Therefore, it is important to compare different first time home buyer home loans and choose the best one that matches your financial circumstances. Star Homeloans can help first home buyers with valuable home loan information, and when you are ready to take a home loan, we’ll assist you to choose the best one. In today’s blog, we’ll discuss methods of comparing home loan options 


How to Choose the First Time Home Buyer Home Loans? 

First-time home buyers try to get approved for a home loan that matches their requirements without paying more than necessary. Here are a few ways to find out the best home loan for first home buyers: 


  • Check current interest rates 

If you have a lower interest rate, then there will be lower repayments. Therefore, it is important to check interest rates before signing any document.  

  • Decide on fixed interest rate vs variable interest rate 

When choosing a fixed interest rate, you can be sure that repayments will never go up and down because they will remain the same throughout the home loan term. On the other hand, if you choose a variable interest rate, then you need to be very careful about fluctuations in interest rates.  

  • Consider your deposit size 

If you have enough deposit, you can be sure that your repayments will be lower, and it will help you get a home loan approved. Most lenders or banks want you to deposit 20%-30%, although there are various schemes available for first home buyers to buy their first home with only a 2% or 5% deposit.  

  • Check your repayment type 

Some first home buyers choose a home loan with principal and interest repayments, whereas first-time home buyers need to repay principal and interest together. It is possible to get an interest-only loan where interest charges will be high, but your repayments will be lower.  

  • Don’t forget to check the features  

When you decide to take a home loan for your first home purchase, then make sure to look at the features offered by the loan.  


How Much Loan for First Time Home Buyer? 

If you want to know how much you can borrow as a first home buyer, you can use Star Homeloans’ borrowing power calculator. You’ll need to enter your income (and your partner’s income if you are making a joint application). In addition to this, enter the number of dependents and any debts you have. The calculator will help you make an estimation of your expenses. The end result will help you know how much you can borrow. When you decide to take a home loan for your first home purchase, then make sure to look at the features offered by the loan.  


What First Time Home Buyer Programs do I Qualify for? 

There are various grants available for first-home buyers in Australia. 

  • First Home Owners Grant (FHOG) 

The first home owners grant is financial support to first home buyers with much-needed financial help when buying their first home anywhere in Australia. Although, before accessing this grant, first-home buyers need to meet eligibility criteria. The amount of the grant may vary from one state to territory.   

  • Stamp Duty Exemption  

Stamp duty is a type of tax that applies when you buy a high-value asset, such as a property. Stamp duty payable is based on the property value. Stamp duty exemption or concession is available to first-time home buyers who are buying a property under a property price cap. Each territory and state has its own stamp duty concessions and eligibility criteria.  

  • First Home Guarantee 

The first home guarantee scheme combines the benefits of the first home loan deposit scheme and the new home guarantee scheme. With this scheme, first-time home buyers can buy their first home with only a 5% deposit without paying LMI.  

  • Family Home Guarantee 

The family home guarantee scheme offers financial support to single parents. Single parents with at least one dependant can access this grant. Using this grant, they can buy a home with only a 2% deposit.  

  • Regional Home Guarantee 

Anyone looking to buy a home within the eligible rural area can access the regional home guarantee scheme. This scheme allows candidates to get home ownership with only a 5% deposit. 



Now, you have an idea of what possible concessions and grants are available for first home buyers. If you want to save thousands of dollars while buying your first home anywhere in Australia, you can contact Home Star Homeloans.