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.
Home loan deals for first home buyers
Below is a selection of the first home buyer cash offers and rebates available from lenders on Canstar’s database at the time of writing.
| Lender | Deal | Comparison Rate* | Conditions include | Offer valid until |
|---|---|---|---|---|
| ANZ | Conveyancing fee rebate of up to $1,000 for eligible first home buyers (including recipients of State or Territory government first home buyer concessions). | Varies | Applies to home loans over $250,000 (T&Cs apply). | Apply between 1 October 2020 and 31 July 2021. |
| Beyond Bank | Receive a $1,000 “first home buyers bonus” upon settlement. | Varies | Available on the First Home Buyers Total Home Loan Package (T&Cs apply). | Until further notice. |
| Credit Union SA | Receive a $5,000 First Home Buyers Grant. | Varies | 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). | Until further notice. |
| Heritage Bank | $2,000 cashback for eligible first home buyers with LMI. | Varies | Cashback will be paid into your Heritage Bank transaction account. Other T&Cs apply. | Home loan must settle before 28 February 2021. |
| Hunter United | No application or valuation fees for new first home buyer owner-occupier loan applications. | 2.69% p.a. | Available on the No Regrets 1st Home Buyers Loan. Minimum loan amount $250,000. (T&Cs apply). | Until further notice. |
| RAMS | Receive a $2,000 New Purchase Rebate when you apply for an eligible new RAMS Home Loan, including if you are buying your first home. | Varies | Minimum loan size of $250,000 (T&Cs apply). | Offer ends 31 January 2021 and must be settled by 31 March 2021.
Not available in conjunction with the LMI offer. |
| Suncorp | Pay no annual fee for the life of the loan. | Varies | For owner-occupier first home buyers who have never previously purchased a property. Available on eligible home loans of at least $150,000 (T&Cs apply). | Until further notice. |
| Source: Providers’ websites as at 6 January 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.
| Lender | Deal | Comparison Rate* | Conditions include | Offer valid until |
|---|---|---|---|---|
| Bank of Melbourne | LMI is reduced to $1 for eligible first home buyers. | Varies | Must have a deposit of 15% (LVR up to 85%). Maximum loan size $850,000. (T&Cs apply). | Until further notice. |
| BankSA | LMI is reduced to $1 for eligible first home buyers. | Varies | Must have a deposit of 15% (LVR up to 85%). Maximum loan size $850,000. (T&Cs apply). | Until further notice. |
| BankVic | BankVic says it will refund you 30% of LMI fees following settlement. You must have a deposit of between 10% and 15% (LVR between 85.01% and 90%). | Varies | Available on the First Home Buyer Package loan. (T&Cs apply). | Until further notice. |
| RAMS | 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%). | Varies | Minimum loan size of $250,000 (T&Cs apply). | LMI offer available until further notice. Not available in conjunction with the New Purchase Rebate offer. |
| St.George | LMI is reduced to $1 for eligible first home buyers. | Varies | Must have a deposit of 15% (LVR up to 85%). Maximum loan size $850,000. (T&Cs apply). | Until further notice. |
| Virgin Money | $0 LMI available on eligible new owner-occupied principal and interest purchase only applications. | Varies. | Must have a minimum deposit between 15% and 20% (T&Cs apply). | Must apply between 24 September and 22 January 2021 and settle by 30 May 2021. |
| Source: Providers’ websites as at 6 January 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.
| Lender | Deal | Comparison Rate* | Conditions include | Offer valid until |
|---|---|---|---|---|
| Bank First | Bank First’s 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. | Varies | Available on the Premier Package Home Loan and the Complete Home Loan (T&Cs apply). | Until further notice. |
| BankVic | BankVic’s 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. | Varies | Available on the First Home Buyer Package loan. (T&Cs apply). | Until further notice. |
| Endeavour Mutual Bank | The bank’s First Home Buyers Loans include features such as a 100% offset account (only for standard variable loans), no redraw fees, no account-keeping fees, no establishment fee (normally $250) and no valuation fee (up to $500). | Varies | Available on First Home Buyers Basic Variable, First Home Buyers Standard Variable loans and 1, 2, 3 and 5-year fixed home loans (T&Cs apply). | Until further notice. |
| G&C Mutual Bank | The mutual bank’s 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. | 2.66% p.a. | T&Cs apply. | Until further notice. |
| Horizon Bank | Horizon Bank’s 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. | 3.86% p.a. | T&Cs apply. | Until further notice. |
| Northern Inland Credit Union | The credit union’s 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. | Varies | Available on any eligible loan product. (T&Cs apply). | Until further notice. |
| The Mutual Bank | The Mutual Bank’s 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. | 3.16% p.a. | T&Cs apply. | Until further notice. |
| Source: Providers’ websites as at 6 January 2021. | ||||
The tables above display only a sample of offers available 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.
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 Star Ratings 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, including the extension of it that was announced in October 2020. If you’re looking to buy land to build your first home on, you may also be eligible to receive a grant (now $15,000) under the Federal Government’s HomeBuilder scheme.
Cover image source: Ketut Subiyanto (Pexels).
This article was originally written by TJ Ryan. It was reviewed by our Sub Editor Tom Letts before it was updated, as part of our fact-checking process.
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