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First Home Buyers Loans

Thanks to the federal government’s first home owners grant, various other government subsidies and a range of new discounted 100% first home buyer loans, it’s easier than ever to buy your first home without a deposit.

Do I need help from my parents?

Did you know that 60% of first home buyers receive some sort of help from their parents?

As a first home buyer, there are two main ways that your parents can assist you with your purchase:

  • Guaranteeing your loan: If your parents offer their home or an investment property as additional security for your loan, then the bank can lend you up to 110% of the property value with no LMI and a low interest rate! This is the only genuine way to buy a home with no deposit.
  • A gifted deposit: In the past, most lenders required proof that you had saved your deposit, known as genuine savings. The rationale is that if you can save money, you can repay a loan. These days some lenders will accept you even if you didn’t save your deposit.
  • Without a guarantee from your parents you can’t qualify for a no deposit loan.

Our mortgage brokers are specialists in helping first home buyers to get into the property market. Please call us on 1300 889 743 or fill in our free assessment form to find out how we can help.

Can the First Home Owners Grant be my deposit?

Yes you can use the FHOG as your deposit. However, it isn’t normally enough on its own.

  • You can use our FHOG calculator to see which grants you are eligible for.
  • If you’re building a home then your grant isn’t available until construction commences.
  • In total, you’ll typically need 5% to 10% of the purchase price, including the FHOG.
  • If you have a guarantor then you don’t need any savings whatsoever.

How does a no deposit loan work?

A no deposit loan will allow you to borrow up to 100% of the purchase price. The main type of no deposit loan is known as a guarantor loan.

They are still available with all the normal loan benefits such as 100% offset, fixed interest rates and interest only periods.

Many people are eligible for discounted professional package interest rates, basic loan packages and application fee waivers as well!

Will I pay a higher interest rate?

Actually, you’ll probably get a rate discount! This is because with the additional security offered by your parents you’re actually a lower risk than someone who’s borrowing 95% of the property value.

If your income, job and credit history are all acceptable to the bank, then you’re a highly sought after borrower.

Banks are increasingly recognising the value of first home buyers and so have offered a range of discounts on their interest rates, loan approval fees, application and valuation fees. You can refer to our interest rates page for the current special offers from our lenders.

How much is the First Home Owners Grant?

The First Home Owners Grant (FHOG) is a national scheme funded by the states and territories of Australia and is administered under their own legislation. Under the scheme, a one-off grant of normally $7,000 is payable to first home buyers.

Note that some states have additional or separate grants, so we’ve created a First Home Owners Grant Calculator to let you know what’s available in your state.

You can apply for the FHOG through your bank when you apply for your loan. The funds will be advanced with your loan at settlement. If you’re building a home then you receive the grant when you apply for your first construction drawdown.

Do first home buyers get any other benefits?

Yes, the state governments offer a range of stamp duty exemptions, additional grants and other benefits that can help you buy your first home.

We recommend that you refer to your state government first home buyer website for the full details:

If you’re not sure what benefits you may receive, we recommend that you call your state’s first home buyer hotline.

What costs are associated with buying a home?

There are several costs you may incur when buying your first home. You should discuss these costs with your mortgage broker or conveyancer before signing the contract to buy a property.

  • Mortgage stamp duty: This is a hidden state government fee that’s calculated based on the amount that you borrow. Most states either waive this for first home buyers or are phasing this fee out.
  • Purchase stamp duty: This is one of the most expensive costs associated with buying a home. Some states offer stamp duty concessions for first home buyers. You can find a stamp duty calculator on most state government websites that will take any first home concessions into account.
  • Registration fees: Another government fee! This is a small fee of around $200 for registering the change of name on the property title and registering the new mortgage on the title.
  • Conveyancing / legal fees: You can expect to pay between $700 and $1,500 for your conveyancing costs for a standard first home purchase. Please refer to our list of recommended conveyancers if you’ve not yet chosen one.
  • Lender fees: Some lenders charge setup fees of up to $850 whilst others will waive all the setup fees for your loan. We can provide you with a free quote for your no deposit loan with the relevant suitable interest rate and fees.
  • LMI: This is the other major cost of buying your first home with no deposit. LMI can range from $0 for a quick start loan up to 5.1% of the loan amount. Call us on 1300 889 743 or fill in our free assessment form for an LMI quote or use our LMI premium calculator to find an exact premium for your situation.

How do I apply for a first home buyer no deposit loan?

Contact us on 1300 889 743 or complete our free assessment form and our expert mortgage brokers will let you know if you’re eligible to borrow 100% or work out if you need to save a deposit and what interest rate discounts you may be eligible for.

We work with all the major bank and non-bank lenders and charge no fees for our services for most standard residential loans.

  • Hi Nicole,

    If you are buying a newly constructed property for you to live in, you may be eligible to get a First Home Owners Grant, i.e. for 15,000 in Queensland. Also, depending on the price of the property you may be eligible to get stamp duty exemptions as well.

  • Alannah

    I’m an Aussie but my partner is a temp res and we’re planning on getting a home loan together. We’re buying for the first time so I’d like to know if we require FIRB approval.

  • Hey Alannah,

    If you and your partner are going 50/50 then FIRB approval won’t be required & no fee as well. If your partner has been in Australia for over 7 months (210 days) continuously and is buying with you, an Aussie citizen, then it usually qualifies for normal duty in NSW and not foreigner duty. We can’t advise you on this though so please refer to your conveyancer or the government for full clarity.