First Home Buyers
Lowest Owner Occupied rates from
6.64%p.a. Variable
6.70%p.a. Comparison*
Up to 90% LVR plus LMI
6.64%p.a. Variable
6.70%p.a. Comparison*
Up to 90% LVR plus LMI
Ready to buy your First Home? No doubt, you’re excited to take the first step in achieving the Australian Dream of owning your own home. There’s no other feeling like settling down in your very own home.
Before you dive in, crunch the numbers or simply give us a call and find how you can achieve a low rate home loan. First Home Buyers can be eligible for the First Home Owner Grant (FHOG). See how much Stamp Duty you could save as a First Home Owner at our Stamp Duty Calculator.
There’s a lot to consider: Variable or fixed? Invest or live-in? Never fear, Reduce is here to guide you every step of the way.
Preparing to buy a home for the first time? Congratulations on achieving the Australian Dream. Searching for, and then moving into, your first home is exciting.
At Reduce Home Loans, we’re here to make sure you get the best home loan for your needs and dreams.
You may be eligible for the First Home Owner Grant (FHOG). Use our Stamp Duty Calculator and find out how much you can save.
Contact our award-winning team with any questions you have about your home loan. Read on for our guide to home loans for first-time buyers.
Both types of home loans have their benefits and risks:
As the name suggests, your mortgage interest rate, and your repayments, can vary, normally depending on the lending interest rate determined by the Reserve Bank of Australia (RBA). Your interest rates will be lower than for a fixed-price home loan but you have the risk of your repayments increasing each time the lending rate increases.
Your repayments are fixed for a period of 1 to 5 years. Your interest rate is often higher than those with a variable rate home loan but, if the RBA increases the variable lending rate, your payments will be unaffected for the duration of the loan. The risk, with a fixed rate loan, is if the variable interest decreases, your fixed-rate won’t and you could be paying more than if you had a variable rate loan. At the end of the fixed rate loan period, you will normally switch to a variable rate mortgage.
Find out more:
When you borrow the funds to buy a home for the first time, we will always get you the best deal we can. However, there are differences between buying a property as an investment, an asset you hope will generate a rental income and buying a property you intend to live in.
These differences are reflected in various grants and schemes available and the risk rating applied to the loan depending on which type of first-time buyer you are. Make sure you contact our friendly team with any doubts or questions.
Home loans include many options to make a particular package attractive and to provide you with a great deal. We will simplify some of these here:
Loan to Value Ratio (LVR)
The LVR represents the percentage of the price of the house the lender will provide finance for. As an example, if a house is valued at $200,000 and the lender has an LVR of 80%, they will provide you with $160,000. You will need to provide a deposit of $40,000.
A low LVR often means you will be able to borrow more while a higher LVR means the loan will be offered at a higher interest rate.
Offset Account
An offset account offers you the chance to reduce the amount of interest you pay. You might have your wages paid into an “offset” account. The balance of the offset account is deducted from the outstanding home loan when the interest due is calculated. You will pay less interest on your home loan as long as your offset account has a positive balance
Cash back loans
Cash back home loans, as the name suggests, provide you with a cash sum. The value is calculated as a percentage of the loan amount. You are free to spend the cash for any purpose.
This can be a benefit if you need to buy furniture or spend on home improvements but note these loans often have higher interest rates.
Extra Repayments
Making extra repayments will enable you to clear the loan more quickly. There is normally a maximum amount you may repay each year and be sure to check there are no penalties involved.
Redraw
“Redraw” enables you to withdraw cash up to the value of your extra repayments. Often useful for unexpected or urgent expenses.
Loan splits
You have the option to split the amount you borrow across variable and fixed-rate loans. Your lender may have a set ratio for split accounts (60/40 variable and fixed rate, for example) and note fixed rate accounts will have a higher interest rate and a set duration.
At Reduce Loans, we want to be sure you get the best value home loan for your circumstances. As a first-time buyer, we understand you will have questions and we are always ready to help.
Get your finance pre-approved and be ready to buy.
Apply for a pre-approvalIt’s not uncommon for someone to buy an investment property as their first house. Here’s our most popular loan for keen investors.
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(29) For the Rate Cutter Variable where the borrower pays $1170 upfront fees then a corresponding loyalty discount of 0.10% p.a. off the Rate Cutter Variable (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(27) For the Investor Rate Slasher Cash Back Variable where the borrower pays $0 upfront fees then a corresponding loyalty discount of 0.06% p.a. off the Investor Rate Slasher Cash Back Variable (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(26) For the Low Rider Cash Back Variable where the borrower pays $0 upfront fees then a corresponding loyalty discount of 0.06% p.a. off the Low Rider Cash Back Variable (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(25) For the Economizer Cash Back Variable where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.08% p.a. off the Economizer Cash Back Variable (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(24) For the Super Saver Cash Back Variable where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.10% p.a. off the Super Saver Cash Back Variable (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(23) For the Super Saver Variable where the borrower pays an upfront fee of $1170 then a corresponding loyalty discount of 0.15% p.a. off the Super Saver Variable (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(22) For the Economizer Variable where the borrower pays an upfront fee of $1,170 then a corresponding loyalty discount of 0.11% p.a. off the Economizer Variable (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(21) For the Investor Cash Back Hero Variable where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.08% p.a. off the Cash Back Hero Variable (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(18) For the Home Owners Dream 1 year fixed where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.20% p.a. off the Home Owners Dream reverted variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(20) For the Cash Back Hero Variable where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.08% p.a. off the Cash Back Hero Variable (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(14) For the Investor Rate Slasher where the borrower pays an upfront fee of $1,170 then a corresponding loyalty discount of 0.09% p.a. off the Investor Rate Slasher rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(12) For the Investor Rate Lovers Interest Only where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.07% p.a. off the Investor Rate Lovers Interest Only rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(11) For the Wealth Maximizer 3 year fixed Principal & Interest where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.20% p.a. off the Wealth Maximizer reverted variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(10) For the Wealth Maximizer 2 year fixed where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.20% p.a. off the Wealth Maximizer reverted variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(9) For the Home Owners Dream 3 year fixed where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.20% p.a. off the Home Owners Dream reverted variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(8) For the Home Owners Dream 2 year fixed where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.20% p.a. off the Home Owners Dream reverted variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(7) For the Investor Rate Slasher where the borrower pays an upfront fee of $1,170 then a corresponding loyalty discount of 0.09% p.a. off the Investor Rate Slasher rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(6) For the Investor Rate Buster Variable where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.08% p.a. off the Investor Rate Buster Variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(5) For the Rate Buster Variable where the borrower pays an upfront fee of $150 then a corresponding loyalty discount of 0.05% p.a. off the Rate Buster Variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(4)For the Rate Slasher Variable where the borrower pays an upfront fee of $1,170 then a corresponding loyalty discount of 0.08% p.a. off the Rate Slasher Variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(3) For the Investor Rate Lovers Variable where the borrower pays $0 upfront fees then a corresponding loyalty discount of 0.06% p.a. off the Investor Rate Lovers Variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(2)For the Rate Lovers Variable where the borrower pays $0 upfront fees then a corresponding loyalty discount of 0.06% p.a. off the Rate Lovers Variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(1) For the Low Rider Variable where the borrower pays $0 upfront fees then a corresponding loyalty discount of 0.06% p.a. off the Low Rider Variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(28) For the Rate Crusher 1 Year Fixed where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.05% p.a. off the Rate Crusher reverted variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.
(19) For the 1 Year Fixed Wealth Maximizer where the borrower pays an upfront fee of $697 then a corresponding loyalty discount of 0.20% p.a. off the 1 Year Fixed Wealth Maximizer reverted variable rate (at that time) will automatically apply after the 5th anniversary of the loan. These fees and loyalty discount are factored into the comparison rate. The loan setup fees are not refundable.