First Home Buyer Loans Rates

See if there’s any other upfront costs, fees or concessions applicable to you by using our SA stamp duty calculator. Most states and territories in Australia have a First Home Owner Grant (FHOG) program, which provides a one-off, tax-free cash grant for eligible first-home buyers to purchase a new home. In return, the government holds an equivalent equity stake in the property. Buyers can choose to repay the government’s share over time or when the property is sold, at which point the government receives its proportional share of the property’s value, including any capital gains or losses. The Home Guarantee Scheme (HGS) is an Australia-wide government initiative that supports eligible home buyers to buy a property with a deposit as little as 2-5%.
So although refunds are generally no longer available, you can still save thousands of dollars by simply using the LMI calculator and shopping around. Although our Lenders Mortgage Insurance calculator doesn’t take all of these lenders into account, you can expect that the LMI premium will be similar to the ones listed in the calculator results. You can also leverage the power of the 360° Home Loan Assessor, which is a comprehensive tool that helps you assess how much you FIFO Income Home Loans can borrow by considering your income, expenses and other financial factors. Keystart home loans are available to anyone who does not currently own a home.

So in effect, these funds are added to your home loan balance when we advance them (shown as a debit), and then once the FHOG has paid to Keystart, that amount is taken off your loan balance (shown as a credit). FHOG is no longer available if you choose to buy an established home, however you may be eligible for the Home Buyers Assistance Grant towards minor expenses. 1 On 1 October 2025, the Home Guarantee Scheme was renamed the Australian Government 5% Deposit Scheme. All home buyer case studies, reports and publications published prior to this date will reference the Home Guarantee Scheme.
Additionally, first home buyers may be eligible for various West Australian State Government grants, which can make the process even more affordable. House and land packages offer numerous benefits, such as a simplified buying process, potential savings on stamp duty, and the ability to move into the perfect house tailored to your preferences. Additionally, our packages are all-inclusive, meaning you won’t have to worry about coordinating with multiple parties or unexpected costs. In Western Australia, you only pay stamp duty on the land portion of your house and land package, not the house itself.
The team at Perth Broker have help borrowers from all walks of life be able to successfully be approved for construction loans and help them right through to the building being completed. Eligible first home buyers who entered into a contract to purchase or build between 1 January 2017 and 30 June 2017 may also be eligible for a $5000 boost payment, in addition to the FHOG. Owner-builders who started laying foundations of their home in that timeframe can also apply. To apply for the boost payment, you will need to submit the specific boost payment application form on top of your application for the FHOG. For more information on eligibility and the application process for the boost payment, read the FHOG Fact Sheet here. USDA loans help eligible buyers purchase homes in rural and small-town areas with no down payment and some of the lowest ongoing loan costs available.

However, the $10,000 First Home Owner Grant (FHOG) from the WA Government only applies if you’re buying or building a new home. This helps first-home buyers cover upfront costs like settlement fees, moving, or even part of their inspection and due diligence. LVR is the amount of your loan compared to the Bank's valuation of your property offered to secure your loan expressed as a percentage. Home loan rates for new loans are set based on the initial LVR and won't change during the life of the loan as the LVR changes. Most lenders want you to have a deposit of at least 20% to buy a home. But if you pay Lenders Mortgage Insurance (LMI), you might only need a 5% deposit.
By December 2024, Perth was one of only two Australian cities where home prices did not fall. The city saw an impressive 17.59% price increase over the year, with properties selling faster than ever. But despite the fast-paced market, there are ways for FHBs to break in. The Moneysmart website has information to help you budget and save for a house deposit. Run by the Australian Taxation Office (ATO), the scheme helps first home buyers save faster by allowing them to withdraw voluntary super contributions they’ve made to their super.

Eligibility will depend on both lender requirements and any government schemes you apply for. Lenders Mortgage Insurance (LMI) protects the lender if you default on the loan. It applies when your deposit is less than 20% of the property’s value.
“This scheme takes lenders mortgage insurance off the table, which can be a roadblock for many first homebuyers. However, that doesn’t make a wafer-thin deposit risk-free,” Canstar data insights director Sally Tindall said. Gerry can review your home loan and let you know whether there are better options for you in the competitive lending market.
Working with a Perth mortgage broker who knows which lenders are most competitive on Scheme loans can save you a lot of time. The Australian Government 5% Deposit Scheme (formerly the First Home Guarantee) is the federal government’s answer to that problem. It lets eligible first home buyers purchase with as little as a 5% deposit without paying Lenders Mortgage Insurance — the premium that normally applies when you borrow more than 80% of a property’s value. With median house prices well above $700,000 across much of the metro area, getting that traditional deposit together can take years — and the market doesn’t always wait. The program provides eligible people an affordable rental property, along with access to a range of services that focus on employment, education, financial independence, household management and wellbeing.

Keystart Loans have specific criteria and features tailored to assist individuals and families who may have difficulty meeting the traditional deposit requirements of other lenders. These loans often require a lower deposit, which can make it easier for first-time home buyers to enter the property market. Our in house finance team, National Home Finance, specialise in construction-based lending and understands the new home building process. They will be familiar with the home you want to build or the house and land package that you desire and will look for financial solutions that suit your circumstances.
Despite very strong population growth, we’re just not building enough new dwellings, and this has put pressure on housing supply reflected in low rental vacancy rates and higher house prices. Several government grants may be available to you, such as the First Home Owner Grant (FHOG), which can help first-time homebuyers with the cost of purchasing a new home. There’s also the potential for a Keystart Home Loan for eligible Western Australia residents. We recommend discussing your eligibility for these grants with our team or your financial advisor. We take care of the finance application, make sure you receive the government grants you’re entitled to, provide settlement support and arrange all insurance needs. State and local programs may help with closing costs like inspections, title fees and escrow charges.

Property price caps will also be set higher in line with average house prices, providing access to a greater variety of homes. The financial deposit is the amount that you need to contribute towards the purchase of the property. A vendor deposit is if the seller of the property requests an amount to secure the property prior to settlement. This normally sits with the real estate agent until settlement date. In Melbourne, the same scenario on a $950,000 property produces negative equity of $7,995, meaning the buyer would owe the bank more than the home is worth.
Government schemes may help reduce upfront barriers, but they do not remove the need for loan assessment. Buyers still need to qualify with a participating lender and meet eligibility requirements. Treasury also notes that the 5% Deposit Scheme  supports eligible homebuyers with a lower deposit and that the First Home Super Saver Scheme may help people save for a deposit through voluntary super contributions. Clearance rates can tell you when competition is rising or falling, but they cannot tell you how much you can safely borrow. Before attending auctions, first home buyers should understand their borrowing capacity, deposit position, repayment comfort and lender requirements.