We understand buying your first home is a monumental (and let's face it, often tedious) process. Finder's home loan experts are here to alleviate some of that stress by guiding you through the whole home-buying process.
Whether you see yourself as a complete home-buying novice or you've been researching for months, we can help you at all stages of the process.
I'm completely new to home loans
– and I'm ready to get started!
I have the basic knowledge
– and I'm keen to learn more!
I'm ready to apply for my first home loan
– and I want to know more about the next steps!
I just purchased my first home
– and I need some guidance on what's next!
How much you can borrow depends on factors like your income, your expenses and how many dependants you have.
Top tip: Use our borrowing power calculator to get a good idea of how much you can borrow.
Saving for a deposit is one of the most difficult barriers to buying a home, but there are ways to make it easier.
Top tip: While a standard deposit is 20%, you might be able to use 10% or even 5%.
There are 2 types of home loan interest rate and they work slightly differently.
Top tip: Fixed rate loans may have additional fees, so be sure to look at the comparison rate.
By using a first home buyer grant, you could take out a home loan with less than a 20% deposit.
Top tip: States and territories have different grants on offer, as well as other concessions.
A mortgage broker can help you navigate all your loan options and advocate to the lender on your behalf.
Top tip: Mortgage brokers are qualified professionals, but do the research to find one you'll fit well with.
There are so many extra tips every first home buyer can use to get a leg up on the competition.
Top tip: Don't just look at the big banks, a lot of smaller providers offer great loan options.
Your home loan is an agreement between you and the lender. The lender lends you money to purchase a property and you agree to pay it back over a term, plus interest.
Unfortunately, borrowing money is not free. On top of your loan, banks/lenders will charge you interest on the money you borrow, expressed as a yearly percentage.
A fixed interest rate will stay the same during the fixed term. This means you won't be affected by cash rate changes and you know how much you'll pay each month.
A variable interest rate can fluctuate in line with the national cash rate. You'll benefit when the cash rate falls, but will also face higher repayments if the cash rate lifts.
An insurance which protects the lender if the borrower is unable to make repayments. It's an extra cost, but it means you can buy a home with a small deposit.
Lenders can approve you for a home loan before you find the property you want to buy, so that you know how much money you can borrow when you're looking at property.
LVR is how much you're borrowing from the lender in proportion to the value of the property. For example, if you have a 20% deposit, you'll be borrowing at 80% LVR.
This takes into account other fees and/or discounts that come with the loan. The comparison rate more accurately reflects how much you will end up paying.
A tax you have to pay when you buy property: although as a first home buyer you may have concessions. Stamp duty covers the cost of changing the names on the property title.
There are a few different steps to applying for a home loan, but it can be fairly simple when you break it down.
Top tip: To increase your chances and time to approval, make sure you have all your paperwork ready early.
By taking out a home loan with a low deposit, you can take years off the time it could take to afford a house.
Top tip: A bigger deposit means a smaller loan amount and less interest.
You might want to consider a home loan with an offset account attached, which reduces the amount of interest you pay.
Top tip: Offset accounts can give you more flexibility than simply making extra repayments.
Your lender will need evidence of your home insurance before the loan settles, so it's important to sort it early.
Top tip: Check the rules in the state you're buying, as when you're responsible for the property can vary.
Stamp duty is a form of tax and is one of the biggest costs you could end up paying when buying property.
Top tip: First home buyers often have discounts or concessions for stamp duty, so check the rules in your state or territory.
LMI covers the lender in case you can't repay and can reduce the deposit you need.
Top tip: Mortgage protection insurance will cover you if you miss repayments due to illness or job loss.
Our team of experts reviewed over 3,000 home loan products from across 200+ lenders to select our Finder Home Loans Awards winners for 2024.
For our First Home Buyer Home Loan category we examined variable rate owner-occupier home loans with principal-and-interest repayments. We scored all eligible loans using a methodology that evaluates how competitive each loan's interest rate is, how high its fees are and whether the loan has an offset account or not.
Tiimely's Live in 10% deposit variable rate loan is our 2024 First Home Buyer Loan winner. This loan has very low fees and an optional 100% offset account.
Education is everything when you're buying a home. I had a friend who didn't know about stamp duty until 1 week before her property settled. Her partner had owned a home before, so they didn't qualify for an exemption when buying this home together – and she had to find $12,000 in 7 days. The more questions you ask and the more informed you are, the less stressed you'll be (and the less chance of nasty surprises like this!).
Sarah Megginson
Head of editorial
If I were to do it all again, I'd make sure I have a decent emergency fund in place – of at least $10K – for any unexpected purchases or repairs after moving in. I'd also shop around for a better home loan broker. I regret going with the first person I was recommended, especially as I'm always banging on about the importance of comparing 'at least 3 quotes' for any financial product or service.
James Martin
Finder insurance editor and homeowner
I had covered property and mortgages for years before I bought a home but it was still stressful. Settlement day was particularly stressful even though I didn't have to do anything. And having a good conveyancer was very important. I'm really glad I had my home loan more or less organised before we signed the contract. It made everything much easier.
Richard Whitten
Finder money editor and homeowner
From suburb research, how to get a loan, signing contracts and moving in, we can guide you through the entire journey.
Top tip: Have an idea of how much you can borrow before you start looking.
Research from Finder shows what common property pitfalls first home buyers should be wary of before looking at property.
Top tip: Arrange for an inspection of the property before you buy.
There are several steps to take when buying your first home, from getting pre-approval to arranging inspections.
Top tip: Download our checklist and tick each step off as you go.
There are several reasons a lender might reject your application, but there are steps you can take to improve the situation.
Top tip: A mortgage broker would be able to guide you through next steps and prepare a stronger application next time.
It's important to understand the benefits of taking out life insurance when you buy a home, whether you legally need it or not.
Top tip: Consider getting income protection if you're worried about being unable to pay your mortgage.
Your guide to the costs and fees associated with buying a house or unit, plus a budgeting spreadsheet to help you calculate them.
Top tip: Check costs like stamp duty, which can vary from state to state.
Please note that this calculator provides very rough estimates and Finder is not a mortgage lender. It's a good idea to use multiple borrowing power calculators to get a better understanding of what you might be able to borrow.
To use Finder's borrowing power calculator just enter the following details. If you're not sure of exact figures, use your best estimate:
Once you've moved in, you'll want to get online quickly. Luckily, that's fairly easy to do.
Top tip: You can also consider alternatives to the NBN like 5G or other private networks.
Bundling internet with utilities can score you a discount, but switching to a cheaper plan may be better.
Top tip: There's not necessarily a financial benefit to getting electricity and gas with the same provider.
Moving day is never going to be completely stress-free, but with a little planning you can make it as smooth sailing as possible.
Top tip: You can get things like your internet, utilities and insurance arranged before you move in.
The wholesale price of electricity has skyrocketed. Make sure you're getting the best deal you can.
Top tip: The bigger providers won't necessarily provide the best deals, so make sure you compare the full range.
By using the Finder app you can check your credit score and make sure it's in a good place for any further borrowing.
Top tip: Download the app for free today and get started by entering in your information.
Now that you're making monthly mortgage repayments, these finance hacks might come in handy.
Top tip: Download the free ebook to get the most out of our top saving hacks.
How much does the average Australian home buyer need to save for a house deposit?
Work out how much you need to earn to buy a house in any Australian suburb.
Your guide to home loan LVRs and how you can determine your loan to value ratio.
Mortgage stress refers to when a homeowner is paying over 30% of their income towards repayments on their home loan.
Repay your loan faster and save thousands by finding a lender that will reduce your LMI. To find the right home loan for you, compare different loans today.
Loan portability allows you to transfer home loan accounts, from your current home to a new property, without refinancing.
You may be able to get a low deposit home loan with just a 5% cash deposit. Here are the lenders who are more likely to lend you a 95% loan.
Lender's mortgage insurance is the upfront charge that you pay when you borrow over 80% of your property's purchase price.
Find a great deal on a variable interest rate home loan from lenders large and small. Start comparing and saving today.
Learn how to compare rates to find the best home loan and start saving money on your mortgage today.
