What is a First Home Buyer Loan?

First Home owners have access to a range of scheme, grants and concessions designed to get first home buyers into the market and purchase their first home.

The amount required to purchase a property is generally more than just the deposit. Buyers may also need to consider costs such as stamp duty, conveyancing, inspections, lender fees and other transaction costs.

Depending on eligibility, first home buyers may be able to access government initiatives designed to assist eligible purchasers. Eligibility requirements, property price limits and available benefits can change over time and may differ between states and territories.

Lenders also have different requirements relating to minimum deposits, genuine savings, employment history, borrowing capacity and the types of properties they will accept as security.

The First Home Owner Grant (FHOG) is a government payment designed to help eligible first home buyers with the cost of buying or building a new home. The amount available and eligibility rules vary depending on the state or territory, and typically consider factors such as the type and value of the property, whether you’ve owned property before, and whether you’ll live in the home as your main residence. It can be a useful helping hand towards the upfront costs of getting into your first home.

The First Home Guarantee is an Australian Government scheme that helps eligible first home buyers purchase a home with a deposit as low as 5% (2% for eligible single parents), without needing to pay Lenders Mortgage Insurance. Housing Australia provides a guarantee to the participating lender for part of the loan, which can make it easier to buy sooner, although you still need to meet the lender’s normal borrowing and eligibility requirements.