Why your first home loan should have these 5 features

Why your first home loan should have these 5 features

Rates and fees last updated on

Features to help you choose the right first home loan

From deposits, to monthly repayments and interest rates, taking out your first home loan can be daunting. That's why we've identified five features that should be on your checklist if you're taking out your first mortgage.

Take these features into consideration and you'll end up with a competitive home loan that allows you to minimise the interest payable on your loan and reach home ownership sooner.

Top Home Loans for First Home Buyers

Rates last updated December 11th, 2017
$
Loan purpose
Offset account
Loan type
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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.65%
3.66%
$0
$0 p.a.
90%
Enjoy a low variable rate with no ongoing fees and borrow up to 90% of the value of the property.
3.54%
3.56%
$0
$0 p.a.
80%
For new home buyers only. No refinance option. A low interest variable home loan with no application fee and free redraws. Offer ends 2 January.
3.69%
4.86%
$0
$395 p.a.
90%
A special rate for first home buyers buying residential property and borrowing over $150K. 350K NAB Rewards Points offer available. Terms and conditions apply.
3.58%
3.59%
$0
$0 p.a.
80%
A competitive variable rate product with low fees offered by a 100% online lender.
3.64%
3.66%
$0
$0 p.a.
80%
A basic home loan with a competitive rate and low fees.
3.78%
3.78%
$0
$0 p.a.
80%
A basic low-rate home loan that still offers some useful features.
3.69%
4.01%
$0
$299 p.a.
95%
A loan with no application fee and borrow up to 95% LVR.
3.74%
3.76%
$0
$0 p.a.
90%
A home loan with a special rate for owner occupiers. Free offset account.
3.69%
3.69%
$0
$0 p.a.
90%
A special limited time offer for owner occupiers. An IMB Transaction Account must be opened with this loan.
3.68%
3.83%
$0
$10 monthly ($120 p.a.)
80%
A low interest rate home loan that allows borrowers to borrow up to 80% of the property value.
3.96%
3.98%
$0
$0 p.a.
90%
Take advantage of a redraw facility, competitive variable rate and no application or settlement fees for a limited time.
3.64%
3.64%
$0
$0 p.a.
70%
A low-rate basic home loan requiring a 30% deposit.
3.64%
3.67%
$0
$0 p.a.
80%
A low rate home loan with no ongoing fees.
3.68%
3.69%
$0
$0 p.a.
95%
A no frills loan with a competitive rate and a maximum LVR of 95%.
3.65%
4.84%
$0
$395 p.a.
90%
A 2 years fixed platinum package that has $0 application and a loan redraw facility.
3.64%
4.03%
$0
$395 p.a.
80%
Apply for a new owner occupier loan or refinance from another lender and receive this discounted rate.
3.99%
4.77%
$0
$0 p.a.
95%
A competitive 3 year fixed rate with a redraw facility and split loan options, plus no application fee.
4.19%
4.19%
$0
$0 p.a.
90%
Get access to a redraw facility and offset account without the annual fee.
3.94%
4.88%
$0
$0 p.a.
90%
Enjoy a low interest rate and borrow up to 90% (with LMI) of your property's value.
3.84%
4.58%
$445
$0 p.a.
90%
A two year discounted rate which reverts to an ongoing life of loan discount afterwards.
4.17%
4.21%
$600
$0 p.a.
95%
A competitive no frills home loan. 350K NAB Rewards Points offer available. Terms and conditions apply.
3.94%
4.98%
$0
$0 p.a.
90%
Investors can take advantage of a short term fixed rate with no application or ongoing fees.
3.99%
4.02%
$600
$0 p.a.
90%
Take advantage of a 0.60% discount on your rate, a 100% offset account and no ongoing fees.
4.09%
4.83%
$0
$0 p.a.
95%
A low 3-year fixed rate with the option to split your loan for free.
3.97%
4.02%
$445
$0 p.a.
90%
Get a competitive rate without features you may not use.
4.39%
4.78%
$0
$395 p.a.
95%
Package your home loan to get discounts on your interest rate and other financial products.

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Save money by avoiding additional costs

If you’re a first time home buyer you should be conscious that there are often additional costs associated with purchasing a property. The most expensive fee that you’re likely to incur is state government stamp duty if it’s applicable in your location, so make sure your budget takes this into account. Also, don't forget about building inspection costs.

Understanding the features of a home loan will be invaluable to helping you make the right investment choice.

Happy first-time home buying!

Belinda Punshon

Belinda is a journalist here at finder.com.au. Specialising in the home loans and property sections, she is passionate about helping Australians improve their financial wellbeing.

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A fixed rate package with flexible repayment options. 350K NAB Rewards Points offer available. Terms and conditions apply.

IMB Budget Home Loan - LVR <=90% (Owner Occupier, P&I)

Get a competitive rate without features you may not use.

HSBC Home Value Loan - Resident Owner Occupier only, P&I

Enjoy a low variable rate with no ongoing fees and borrow up to 90% of the value of the property.

Newcastle Permanent Building Society Premium Plus Package Home Loan - New Customer Offer ($150,000+ Owner Occupier, P&I)

Apply for a new owner occupier loan or refinance from another lender and receive this discounted rate.

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2 Responses

  1. Default Gravatar
    karenMay 26, 2015

    you say a redraw facility saves more interest than an offset account, but I thought the offset account is as if that money is on your mortgage so how can it cost more than having a redraw and putting that extra money straight onto yoru mortgage

    • Staff
      BelindaJune 1, 2015Staff

      Hi Karen,

      Thanks for your enquiry.

      A redraw facility enables you to borrow money you’ve already repaid. For instance, if your minimum monthly loan repayments were $500 and you paid $700 each month for 6 months, you’ll have paid an additional $1200 on top of your required monthly repayments. The redraw facility allows you to access that extra money whenever you like which provides you with increased flexibility.

      Whereas an offset account is a transaction account that reduces the interest payable on the loan by the amount held in this account. For example, a 100% offset account with $500 000 on a loan of $300 000 would see interest-only calculated on a balance of $250 000. On a loan of 5.5% over 30 years, this could amount to a saving of $90 000 in interest, with seven years cut from your loan.

      I hope this clarifies things for you.

      Thanks,
      Belinda

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