Home loan providers often offer discounts and special offers to attract first home buyers. For example, a lender may offer you cashback on settlement or waive certain fees on your loan.
While getting a deal or offer on your home loan can help you save money, it’s important to take a look at both price (interest rates and fees) and the features that are important to you when picking out a home loan. For example, when it comes to features, you may wish to have a home loan with a redraw facility so you can access any extra repayments you have made on the loan, should you need to.
However, if you’re happy with how a home loan’s price and features stack up to the other options out there, getting a loan with a first home buyer deal or incentive may be a bit of extra icing on top.
Home loan sign-up incentives for first home buyers
The table below shows a selection of the first home buyer deals and promotions available from lenders on Canstar’s database at the time of writing. It also displays some home loans and home loan packages that are designed for first home buyers specifically. 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 whether the interest rate stacks up against other loans out there.
| 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). | Must apply by 30 September 2020 and draw down by 31 December 2020. |
| Bank First | Bank First’s First Home Buyers’ Package includes features such as $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 | Package is 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 package or annual fees, access to an offset account and free redraw facility (minimum redraw $50), the ability to borrow up to 85% LVR without Lender’s Mortgage Insurance (LMI), and family guarantee available. | Varies | Package is available on the First Home Buyer Home Loan (T&Cs apply). | Until further notice. |
| Beyond Bank | Receive a $1,000 “first home buyers bonus” upon settlement. | Varies | Available on the First Home Buyer Total Home Loan Package (T&Cs apply). | Until further notice. |
| Credit Union SA | Receive a $5,000 First Home Buyers Grant. | Varies | Loans will be subject to pay Lender’s Mortgage Insurance. Minimum loan amount $250,000 to purchase or build a first home with a LVR over 80% (T&Cs apply). | Until further notice. |
| Endeavour Mutual Bank | The bank’s First Home Buyers Loans include features such as no account-keeping fees, a 100% offset account (only for standard variable loans), no redraw fee, no establishment fee and no valuation fee. | 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. |
| Firefighters Mutual Bank | The mutual bank’s My First Home Loan includes features such as no establishment fee, a 100% offset facility, no ongoing fees, a fee-free redraw facility and the ability to make unlimited additional repayments. | 4.16% p.a. | Minimum loan amount $25,000. Suitable for construction on interest-only 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, no annual fee on the credit card for the first year, a 100% offset account, redraw available (service fee applies) and unlimited extra repayments. | 2.66% p.a. | T&Cs apply. | Until further notice. |
| Health Professionals Bank | The bank’s My First Home Loan includes features such as no establishment fee, a 100% offset facility, no ongoing fees, a fee-free redraw facility and the ability to make unlimited additional repayments. | 4.16% p.a. | Minimum loan amount $25,000. Suitable for construction on interest-only loans (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, free redraw on extra repayments, a 100% offset account and no ‘break fees’ for early repayment. | 3.86% p.a. | Minimum loan amount $50,000 (T&Cs apply). | Until further notice. |
| Hume Bank | Hume Bank’s First Home Starters Package includes features such as no establishment fee, a discount of 0.10% on the two-year fixed rate, reverting to a 0.70% discount from the standard variable rate, and discounts on loan fees, insurance and financial planning products. | 3.87% p.a. | Available on First Home Starters Package (T&Cs apply). | Until further notice. |
| Hunter United | No application or valuation fees for new first home buyer owner-occupier loan applications. | 2.79% p.a. | Available on the No Regrets 1st Home Buyers Loan. Minimum loan amount $250,000. (T&Cs apply). | Until further notice. |
| Illawarra Credit Union | Illawarra Credit Union says it will waive the home loan application fee, valuation fee and legal fees, as well as the monthly account-keeping fee on its Everyday transaction account for eligible first home owner grant recipients. | 2.80% p.a. | Available on Bare Essentials home loan. (T&Cs apply). | Until further notice. |
| LCU | LCU’s Savvy First Home Buyer Loan includes features such as a discount of 0.50% off the Intelligent Mortgage Variable Loan Rate for the first three years of the loan, and legal fees and valuation costs paid (up to $1,000). | 3.50% p.a. | Only first home buyers are eligible for the Savvy First Home Buyer loan. (T&Cs apply). | Until further notice. |
| Macquarie Credit Union | Macquarie Credit Union’s First Home Buyer’s Home Loan includes features such as a discounted variable rate for the first three years, a family guarantee option, 100% mortgage offset and up to $600 of valuation and legal costs paid. | 4.36% p.a. | Designed for those eligible for the First Home Owner’s Grant (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, 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. Minimum loan sizes vary (T&Cs apply). | Until further notice. |
| 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 (T&Cs apply). | Until further notice. |
| Teachers Mutual Bank | The mutual bank’s My First Home Loan includes features such as no establishment fee, a 100% offset facility, no monthly fees, a fee-free redraw facility, and the ability to make unlimited additional repayments. | 4.16% p.a. | Minimum loan amount $25,000. Suitable for construction on interest-only loans (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 free initial property valuation. | 3.16% p.a. | Minimum loan amount $150,000 (T&Cs apply). | Until further notice. |
| UniBank | UniBank’s My First Home Loan includes features such as no establishment fee, a 100% offset facility, no monthly fees, a fee-free redraw facility, and the ability to make unlimited additional repayments. | 4.16% p.a. | Minimum loan amount $25,000. Suitable for construction on interest-only loans (T&Cs apply). | Until further notice. |
| Source: Providers’ websites, as at the time of the latest update on 6 July 2020. Based on advertised online promotions. Please note that conditions, additional costs and exclusions may apply to these offers. Read all terms and conditions provided by the relevant institution.
*Read Canstar’s Comparison Rate Warning. |
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This includes only a sample of offers available from financial institutions for illustrative purposes and is not a product recommendation. Please check providers’ websites for current offers. Please note that various conditions may apply to the deals outlined above, which are listed on the providers’ websites.
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 the biggest 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 can view our latest Home Loan Star Ratings and see which institution was awarded 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. If you’re looking to buy land to build your first home on, you may also be eligible to receive a $25,000 grant under the Federal Government’s HomeBuilder scheme.
This article was originally written by TJ Ryan.
Main image source: Gutesa (Shutterstock)
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