Home loan providers often offer discounts and special offers to attract first home buyers. For example, we’ve found a number of lenders on our database offering deals such as cashback, fee rebates and discounts on lenders mortgage insurance (LMI).
While getting a deal on your home loan could help you save money, when choosing a home loan it’s generally more important to take a look at the loan’s interest rate, fees and features. But if you’re happy with how a home loan’s price and features stack up against other options, getting a first home buyer deal along with it may be a bit of extra icing on top.
The deals below are only a sample of offers available from lenders on Canstar’s database at the time of writing. Please check with the providers directly for current offers and read the terms and conditions that apply to the offers.
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Home loan deals for first home buyers
Below is a selection of the first home buyer rebates and cash offers available from lenders on Canstar’s database at the time of writing.
ANZ – conveyancing fee rebate of up to $1,000
Available for eligible first home buyers (including recipients of State or Territory government first home buyer concessions). Applies to home loans over $250,000. T&Cs apply.
Expires: Apply between 1 October 2020 and 31 July 2021.
Beyond Bank – $1,000 first home buyers bonus
Paid upon settlement. Available on the First Home Buyers Total Home Loan Package. T&Cs apply.
Expires: Available until further notice.
Credit Union SA – $5,000 first home buyers grant
Minimum loan amount $250,000 to purchase or build a first home with an LVR over 80%. Loans will be subject to LMI. T&Cs apply.
Expires: Available until further notice.
Hunter United – no application or valuation fees
Available on the No Regrets 1st Home Buyers Loan for new first home buyer owner-occupier loan applications. Minimum loan amount $250,000. Comparison rate 2.69%. T&Cs apply.
Expires: Available until further notice.
RAMS – $2,000 new purchase rebate
When you apply for an eligible new RAMS Home Loan, including if you are buying your first home. Minimum loan size of $250,000. T&Cs apply. Not available in conjunction with the LMI offer (see below).
Expires: Offer ends 30 April 2021 and must be settled by 30 June 2021.
Suncorp – pay no annual fee for the life of the loan
Available on Suncorp’s Home Package Plus product. For owner-occupier first home buyers who have never previously purchased a property. Available on eligible home loans of at least $150,000. Comparison rate varies. T&Cs apply.
Expires: Available until further notice.
Source: Lenders’ websites as at 6/4/2021.
LMI discounts for first home buyers
The following lenders are offering discounts on LMI premiums for eligible first home buyers at the time of writing. LMI is typically payable if your home loan deposit is less than 20% of the total value of your property.
Bank of Melbourne, BankSA, St.George – LMI reduced to $1
Eligible first home buyers can reduce the cost of their LMI to $1. Must have a minimum deposit of 15% (LVR up to 85%). Maximum loan size $850,000. T&Cs apply.
Expires: Available until further notice.
ME Bank – 25% discount on LMI
Eligible first home buyers can receive a 25% discount on LMI. Maximum LVR of 95% (inclusive of LMI) applies. Maximum loan amount of $1.2 million. T&Cs apply.
Expires: Offer ends 16 April 2021.
RAMS – LMI reduced by up to $5,000
Eligible first-time buyers can reduce their LMI by up to $5,000, to a minimum of $1 (for loans with an LVR above 80% up to 95%). Minimum loan size of $250,000. T&Cs apply. Not available in conjunction with the New Purchase Rebate offer (see above).
Expires: LMI offer available until further notice.
Source: Lenders’ websites as at 6/4/2021.
Home loans for first home buyers
The following home loans and home loan packages are designed specifically for first home buyers. Bear in mind that lenders sometimes charge a premium for ‘package’ home loans that bundle together a number of products and features, so it can be worth paying close attention to any fees charged and how the interest rate stacks up against other loans out there.
Bank First – First Home Buyers’ Package
Includes features such as a $0 establishment fee, a 100% offset facility on variable rate home loans and the ability to borrow up to 98% of the value of the property, or up to 100% with a family guarantee. Available on the Premier Package Home Loan and the Complete Home Loan. Comparison rate varies. T&Cs apply.
Expires: Available until further notice.
BankVic – First Home Buyer Package
Includes features such as no establishment, ongoing, annual or package fees and the ability to borrow up to 85% LVR with no LMI. Comparison rate 2.72% p.a. T&Cs apply.
Expires: Available until further notice.
Endeavour Mutual Bank – First Home Buyers Loans
Loans include features such as a redraw facility, no establishment fee (normally $250) and no valuation fee (up to $500). Available on First Home Buyers Basic Variable, First Home Buyers Standard Variable loans and 1, 2, 3 and 5-year fixed home loans. Minimum loan size of $100k. Comparison rate varies. T&Cs apply.
Expires: Available until further notice.
G&C Mutual Bank – First Home Premium Package
Includes features such as no establishment fee, no package fee, no monthly service fee on the packaged transaction account and no annual fee on the credit card for the first year. Comparison rate 2.66% p.a. T&Cs apply.
Expires: Available until further notice.
Horizon Bank – KickStart First Buyer Home Loan
Includes features such as the ability to make additional repayments without penalty, free redraw on extra repayments, a 100% offset account and no ‘break fees’ for early repayment. Comparison rate 3.86% p.a. T&Cs apply.
Expires: Available until further notice.
Northern Inland Credit Union – First Home Buyer Loan
Includes features such as no establishment fee (normally $600), a credit card approved with a $2,000 limit and reduced interest rate (currently 10.74% p.a.) for the life of the loan, and assistance with the First Home Owner Grant forms. Available on any eligible loan product. Comparison rate varies. T&Cs apply.
Expires: Available until further notice.
The Mutual Bank – First Home Buyer Package Home Loan
Includes features such as a 1.65% p.a. discount on the Standard Variable Home Loan interest rate for the life of the loan, a fee-free redraw facility and 100% offset account, annual package fee waived for the first year of the loan, and a free initial property valuation. Comparison rate 3.16% p.a. T&Cs apply.
Expires: Available until further notice.
Source: Lenders’ websites as at 6/4/2021.
Some of the top-rated first home buyer home loans on Canstar’s database
Home loan deals and incentives may help you shave money off your home loan. However, it’s likely the interest rate your lender charges will make a bigger difference to the cost of the home loan you choose. It’s also important to consider the fees and other charges that may apply.
If you’re currently considering a home loan, the comparison table below displays some of the variable rate home loans on our database with links to lenders’ websites that are available for first home buyers. This table is sorted by Star Rating (highest to lowest), followed by comparison rate (lowest-highest). Products shown are principal and interest home loans available for a loan amount of $350K in NSW with an LVR of 80% of the property value.
Before committing to a particular home loan product, check upfront with your lender and read the applicable loan documentation to confirm whether the terms of the loan meet your needs and repayment capacity. Use Canstar’s home loan selector to view a wider range of home loan products.
*Comparison rate based on loan amount of $150,000 and a term of 25 years. Read the Comparison Rate Warning.
If you’re looking to compare first home buyer home loans, Canstar’s comparison tables could be a good place to start. Canstar compares hundreds of first home buyer home loans based on both price and features. You might also like to view our latest Home Loan Awards results and see which institutions received our First Home Buyer Award.
While you’re doing your research, it’s also a good idea to check whether you are eligible for a First Home Owners Grant and/or the Federal Government’s First Home Loan Deposit Scheme.
Cover image source: Ketut Subiyanto/Pexels.com
This article was originally written by TJ Ryan.