First Home
Buyers Mortgages

The bigger your deposit, the more choice you’ll have when it comes to finding your dream home.

Ideally you should aim for around a 20% deposit, however, there are many options now which only require a 5% deposit. Seek independent advice to ensure you don't miss out on an opportunity that could put you in a better position.

A concerted effort has been made by the Government to incentivise first homeowners to build a new home rather than buy an existing property. This is largely because of the lack of housing in Australia. If you are considering this, we can help you find the right mortgage provider without having to compromise on the type of house you want, allowing you to build one that suits your needs.

The first homeowner grant amount has varied since it was launched in 2000 but remains a key feature for first home buyers building a new home. The addition of Government Guarantee Schemes to the First Homeowners Grant makes building your first home more achievable than before.

As with most things, there are pros and cons to both options. During the life of your loan, the amount of interest you get charged by your lender, can go up or down depending on the rate the banks charge. As a result, your monthly repayment will change in line with the interest rate. This is why it’s called a variable rate. Variable rate loans offer you the flexibility to make extra repayments, change between different product types and close the loan early without any penalties.

On the flipside, you can fix your interest rate for a set period, protecting you from rate rises, so you know exactly what your repayments are. What you can’t do with a standard fixed rate loan is to make extra repayments however some lenders have fixed rate products that do. Also, you may have to pay additional penalties if you close a fixed rate loan before the term expires.

Fixed rate mortgages can be good if:

• Budget is tight and you cannot afford fluctuations in your repayments
• Interest rates are likely to increase in the near future
• You want certainty about knowing what your expenses will be for the period of the fixed rate term

Variable rate mortgage can be good if:

• You have high disposable income and want to make extra repayments when it suits you
• You are expecting a large sum of money which you want to deposit into the loan
• You are intending on selling the property in the near future
• You are intending on refinancing or closing the loan in the near future