Understanding first-home loans
First-home loans are specifically designed to support individuals or couples buying their first property. These products often come with features such as reduced interest rates, government support schemes, or flexible repayment structures. There is strong demand among first-home buyers, and lenders are actively offering competitive products to suit different financial situations.
Eligibility and support schemes
Eligibility for first-home loans typically depends on income, deposit size, credit history, and employment status. Many first-time buyers can access support through government initiatives such as the First Home Guarantee, which allows eligible applicants to purchase a home with a deposit as low as 5%, without the need for lenders mortgage insurance (LMI).
Additionally, the First Home Owner Grant (FHOG) may be available if you are building a new home or purchasing a newly constructed property in Victoria.
Key considerations before applying
- Know your budget: Understanding your borrowing power helps define your property search.
- Secure pre-approval: This allows you to act quickly when you find the right property.
- Consider additional costs: Factor in stamp duty, conveyancing, and potential maintenance costs.
- Work with a broker: A mortgage broker can simplify the process by matching you with suitable lenders and explaining the differences between products.
