First Time Home Buyer Loan- What all you need to know

First-time home buyer programs are there in Australia to encourage those who plan for buying their first house and try to know these home buying programs.

Are you dreaming of buying your first house in Australia? Probably, you are also looking for a first-time home buyer loan to fulfill your dream of having your own home. If you are a first-time buyer, several benefits are available for you, and you can take advantage of them to make your purchase an easy task. But first-time buyers need to fulfill certain eligibility criteria in order to access these grants. Get an idea about the best first home buyer programs for making your home purchase easy.

Understand the Property Market and Financial Options

Careful consideration and research are essential for finding the right home for you and your family. Before buying the property and searching for the first home deposit scheme, find out that it is in the right location and has the right value and size. Besides, it should fit your lifestyle. Inspect the property thoroughly before placing a bid on it. It helps you to ensure that no hidden costs are there with the property. If you plan to buy a home, try to understand the property market and the different financial options available to acquire your dream home.

Benefits for First Home Buyers

Several state and territory governments in Australia offer grants to first home buyers in order to assist them with its cost. Some specific requirements are there to make you eligible for these home buying programs, such as:

  • You must be a person eighteen or above
  • Must be an Australian citizen or a permanent resident of the country
  • You can provide a deposit of a minimum of 5% of the value of the property
  • Your spouse, partner, or co-purchaser who has not purchased or owned property before.
  • Earning $125000 or less annually if you are single or less than $ 200000 if you are a family

Best Schemes for First Home Buyer Loan

Many people find it challenging to save a deposit for buying their first home. Fortunately, the government of Australia offers first-time homebuyer benefits for those who desire to buy a home. With the help of such schemes, first home buyers can get easy and fast access to the property market in Australia. It offers the best mortgages for first-time buyers because they can purchase the home with an initial deposit of as little as 5%. Besides, it is exempt from Lenders Mortgage Insurance (LMI). However, you need to apply for this first home loan deposit scheme through a participating lender of this scheme or an authorized representative like a Mortgage Broker.

You can take out a home loan with a loan lender once your application has been approved after demonstrating your eligibility. Since the government will act as your guarantor, there is no need to pay the LMI. But whatever benefits you will get through this first home deposit scheme will be stopped if you refinance your loan or move out or sell your home.

Things to Consider Before Applying for a Loan

Banks and other lenders in Australia usually carry out background checks of the applicant before sanctioning the loan to understand his capacity to make repayments. So, they check your payslips and tax statements for the last two or three years. The applicant also must have an above-average credit score and a good credit history. Some key factors that first home buyers need to consider are:

  • First home buyer mortgage rates
  • Features of the mortgages
  • Mortgage terms

Best Mortgages for First Time Home Buyers

A stable financial condition is the first criteria for qualifying for a mortgage loan. Those eligible can enjoy first home buyer grants and stamp duty discounts to fulfill their dream of having a home. Even if many grant schemes are available for first-time buyers, find out how much you can afford before applying for the loan. Those who are dreaming of buying their first house can take advantage of different home buying programs available in the country, such as:

  • The First Home Owners Grant
  • The First Home Loan Deposit Scheme
  • The First Home Builder Grant Programs


Heavy financing is certainly a great obstacle for many Australians to fulfill the dream of owning a home. But with the several housing incentives, low-interest rates, and first home buyers’ assistance schemes created a suitable environment for first-time homebuyers to secure their dream houses. Check your eligibility for the first home loan deposit scheme if you are a citizen or a permanent resident of Australia with a stable income.