First Home Buyer Loans and Rates Australia 2026
Your deposit, income and borrowing needs can all affect the rates available to you. Enter your details below to see personalised first-home loan options.
Last updated: August 2026
- Average Rate
- 6.79%
- Best Rate
- 5.89%
- Monthly Payment
- $2,962
Unloan Home Loan
Unloan
Min 20% DepositRedraw5.89%Interest RateVariable5.80%Comparison Rate*$2,962per monthPrincipal And Interest
Bendigo Express Home Loan
Bendigo Bank
Min 20% DepositOffsetRedraw5.89%Interest RateVariable6.02%Comparison Rate*$2,962per monthPrincipal And InterestFees:Application $250Ongoing/month $10Discharge $350+ other fees may apply
Everyday Home Loan Owner Occupied PandI 80 or less LVR
MOVE Bank
Min 20% DepositRedraw5.99%Interest RateVariable6.04%Comparison Rate*$2,995per monthPrincipal And InterestFees:Application $600Discharge $350
Budget Home Loan
IMB Bank
20%-29% DepositRedrawCashback6.04%Interest RateVariable6.07%Comparison Rate*$3,011per monthPrincipal And InterestFees:$449Application$300+ other fees may applyDischarge
ME Bank EconoME Home Loan
ME Bank - ME Go
20%-30% DepositRedrawCashback6.04%Interest RateVariable6.06%Comparison Rate*$3,011per monthPrincipal And InterestFees:$350+ other fees may applyDischarge
First Home Buyer's key decisions
Focused on overcoming entry barriers, FHBs prioritise saving a deposit and leveraging government support. Their decisions are shaped by affordability and navigating extra costs like LMI.
45%
Saving the Deposit
A primary hurdle, involving strategies like automating savings, debt reduction, and leveraging schemes like the First Home Super Saver Scheme for tax benefits.
30%
Utilising Govt. Schemes
Exploring eligibility for grants (FHOG) and guarantees (FHBG, RFHBG) that can significantly reduce required deposits and waive LMI.
15%
Navigating LMI
Understanding Lenders Mortgage Insurance and exploring ways to avoid it, such as saving a 20% deposit or using a guarantor.
10%
Budgeting All Costs
Accounting for not just the loan principal but also stamp duty, legal fees, and other transaction costs to avoid financial surprises.
Watch out! If you are self-employed, you need different kinds of loans.
Lenders often perceive self-employed income as less stable, requiring specific documentation and potentially different loan products. It's crucial to understand these unique requirements.
26 Jun 2026
What is a first home buyer home loan?
A home loan, also known as a mortgage, is money you borrow from a lender to buy a property. In return, you agree to repay the loan over an agreed period—typically up to 30 years—with interest.
Your lender uses the property as security for the loan. This means if you can't keep up with your repayments, the lender has the legal right to recover the debt by selling the property.
A first home buyer home loan isn't a separate type of mortgage. It's simply a home loan taken out by someone purchasing their first home. Most first home buyers have access to the same home loan products as other borrowers, although they may also qualify for government support, lower deposit options or lender policies designed to help them enter the property market sooner.
The right loan depends on factors such as your deposit, income, borrowing capacity, financial goals and the features you value most. For example, some buyers prioritise the certainty of a fixed interest rate, while others prefer the flexibility of a variable rate loan with features like an offset account or redraw facility.
Understanding how home loans work, and the options available, can help you choose a loan that suits both your budget today and your plans for the future.
Am I eligible for any government schemes or assistance as a first home buyer?
Saving a deposit is often the biggest hurdle to buying a first home. To help more Australians enter the property market sooner, the Australian Government and state and territory governments offer a range of grants, guarantees and concessions.
Depending on your circumstances, you may be able to buy with a smaller deposit, avoid Lenders Mortgage Insurance (LMI), receive a cash grant or reduce your upfront costs through stamp duty concessions.
Australian Government 5% Deposit Scheme
The Australian Government 5% Deposit Scheme helps eligible buyers purchase a home sooner with a smaller deposit and without paying Lenders Mortgage Insurance (LMI). Instead of saving a 20% deposit, eligible buyers can purchase with:
- 5% deposit for eligible first home buyers
- 2% deposit for eligible single parents and legal guardians
The Australian Government guarantees part of the loan, allowing participating lenders to lend above 80% LVR without requiring LMI. Since October 2025, the scheme has removed income caps and annual place limits, making it available to more eligible buyers.
Help to Buy
The Help to Buy scheme is different. Rather than guaranteeing part of your loan, the government contributes towards the purchase price in exchange for an equity share in your property. This reduces the amount you need to borrow and can lower your repayments, although the government shares in the property's future value.
First Home Owner Grant (FHOG)
The First Home Owner Grant is a one-off payment offered by state and territory governments to eligible buyers purchasing or building a new home. Grant amounts, property value caps and eligibility rules differ across Australia.
Stamp duty concessions
Most states and territories offer stamp duty exemptions or concessions for eligible first home buyers. Depending on where you purchase and the property's value, these concessions can save you thousands of dollars in upfront costs.
Government support can help you buy sooner, but borrow wisely
Government support has made it easier for many Australians to buy their first home. Lower deposit requirements, reduced upfront costs and shared equity schemes have opened the door for buyers who may have otherwise needed years longer to save.
But it's important to understand what these schemes do—and what they don't.
Most schemes reduce the amount you need upfront to buy a home. They don't reduce the amount you borrow or the ongoing responsibility of repaying the loan.
For example, buying with a 5% deposit means you'll generally start with less equity than someone who contributes a 20% deposit. While that can help you enter the market sooner, it also means there's less of a buffer if property prices fall or your financial circumstances change.
That doesn't mean these schemes are the wrong choice. For many buyers, they provide a valuable pathway into home ownership that may not otherwise be possible. The key is to choose a property and loan that remain affordable, not just today, but if interest rates rise or your income changes.
The Path to Ownership
The home loan process is a structured journey with six critical stages. Understanding this path demystifies the process, reduces anxiety, and empowers you to be prepared for every milestone. Follow the steps from initial thought to final ownership.
1. Pre-Application
The research phase. You assess financial goals, calculate borrowing power, and gather documents. Key Decision: "Am I financially ready to begin this journey?"
2. Pre-Approval
A game-changing step where you get conditional approval from a lender. Key Decision: "Which lender should I approach to get a realistic budget and strengthen my position as a buyer?"
3. Choosing Lender & Product
Now you compare the market. Key Decisions: "Fixed or variable rate? Which features like offset accounts are essential for my lifestyle? What are the true costs?"
4. Application & Approval
With a property chosen, you submit your formal application for unconditional approval. Key Decision: "Have I provided all documentation accurately to ensure a smooth and fast approval?"
5. Contract & Settlement
The legal finalisation of the purchase. Key Decisions: "Do I fully understand the loan contract? Have I engaged the right legal support for settlement?"
6. Post-Settlement
Your journey continues as a homeowner. Key Decision: "How can I manage my loan effectively, and when should I review it to ensure I still have the best deal?"
Some case studies
Paid LMI to enter the market early
Profile
Age: 32
Profession: Engineer
Salary: $95,000
Deposit: $35,000
Location: Brisbane
Challenge
Was keen to buy but didn’t want to wait another 1–2 years to save a 20% deposit.
Solution
Went ahead with a 10% deposit and paid Lenders Mortgage Insurance (~$8,500) to get into the market faster.
Plan : Plans to refinance and drop LMI once LVR drops below 80%.
Disclaimer:
The case studies provided above are examples only and based on common lending scenarios. They are intended for general information purposes and do not constitute financial advice. Individual circumstances, lender policies, and scheme eligibility may vary. Please consult a licensed mortgage broker or financial adviser before making any home loan decisions.
Common first home buyer mistakes (and how to avoid them)
Buying your first home comes with a steep learning curve. Here are some of the most common mistakes first home buyers make, and how you can avoid them.
Not checking your eligibility for government support
Many eligible buyers never apply for government schemes, grants or stamp duty concessions that could significantly reduce their upfront costs. Before you compare home loans, check what support is available based on your circumstances and where you're buying.
Comparing interest rates instead of the total cost
A low advertised interest rate doesn't always mean a cheaper home loan. Fees, loan features and ongoing charges can all affect what you pay over time. Checking the comparison rate can give you a better idea of the overall cost of the loan.
Starting your property search before getting pre-approval
House hunting without pre-approval makes it difficult to know what you can realistically afford. Getting pre-approved helps you set a realistic budget, gives you confidence when making offers and can make the buying process smoother once you find the right property.
Underestimating the upfront costs
Your deposit is only part of the cost of buying a home. Depending on your situation, you'll also need to budget for expenses such as stamp duty, conveyancing, building and pest inspections, lender fees and moving costs. Planning for these early can help you avoid unexpected financial pressure.
Borrowing up to your maximum limit
Just because a lender approves you for a certain amount doesn't mean you should borrow it all. Leave room in your budget for changes in interest rates, living costs and unexpected expenses so your mortgage remains comfortable over the long term.
Choosing a loan that only suits you today
Your circumstances are likely to change over the life of a 25- or 30-year loan. Think beyond the initial interest rate and consider whether features such as an offset account, redraw facility or flexible repayments could benefit you in the future.
Frequently asked questions (FAQs)
At the time of writing, the lowest variable rate for first home buyers on our database starts from 5.89%. To qualify The lowest rates require a 20% deposit and clean credit history.
Pravin Mahajan
Founder @ Bheja.ai | Mortgage Broker | Ex-CTO RateCity & CIMET
Pravin Mahajan is the Founder of Bheja.ai and an accredited Mortgage Broker (Credit Rep. 570637). Based in Sydney, he sits at the unique intersection of financial regulation and enterprise technology.
With over 30 years of experience, Pravin has architected the consumer platforms that millions of Australians rely on for daily financial and purchasing decisions. His career is defined by building high-scale systems that simplify complex choices:
- RateCity (Acquired by Canstar): As Chief Product & Technology Officer, Pravin led the tech transformation that culminated in the company's acquisition. He orchestrated "Australia’s First Home Loan Sale," a digital initiative that reached over 12 million people.
- CIMET: As CPTO, he built enterprise-grade infrastructure for energy and broadband comparison, scaling operations to support major B2B partners.
- Salmat (Lasoo): He architected digital catalogue systems used by 5.7 million monthly users, digitising the retail experience for brands like Target and Myer.
- Woolworths: Designed the real-time, secure "Pay at Pump" transaction infrastructure deployed Australia-wide.
Today, at Bheja.ai, Pravin combines this deep technical background with his Certificate IV in Finance and Mortgage Broking to build AI agents that don't just compare loans, but help Australians actively secure their financial future.
Mahendra Duddempudi
CTO & Head of Research
Mahendra Duddempudi is the CTO, Founder, and Head of Research at Bheja.ai. With 15+ years in software architecture, data engineering, and analytics, he combines technology and research to simplify complex topics in property, home loans, and finance. His work focuses on using AI, natural language search, and data-driven insights to make financial decisions clearer and more accessible for Australians.
