First Home Buyer Home Loan Rates
Compare some of the best first home buyer home loan rates from Australia’s major lenders, smaller banks and member-owned lenders
Lowest FHB variable rate
South West Slopes Bank Discounted Standard Variable * P&I * 90% LVR
5.70%
P.A. rate6.06%
Comparison*Lowest 1 yr FHB fixed rate
Community First Bank Go Basic fixed Home Loan * P&I * 80% LVR
5.85%
P.A. rate5.98%
Comparison*Lowest 3 yr FHB fixed rate
Regional Australia Bank Fixed Home Loan * P&I * 60% LVR
5.99%
P.A. rate6.02%
Comparison*Lowest 5 yr FHB fixed rate
Macquarie Bank Basic Home Loan Fixed * P&I * 70% LVR
6.29%
P.A. rate6.17%
Comparison**Comparison rates based on a $150,000 loan over 25 years. Different terms, fees or loan amounts might result in a different comparison rate.
Best home loan rates for first home buyers
Filter the table and enter your loan amount and term for estimated repayments. For an expert comparison of any product versus the loans in our lender panel, just click 'compare'.
Owner occupier · First home buyer home loans
| Lender & product | Type | Features | Compare | ||
|---|---|---|---|---|---|
:format(webp)){kind=small} South West Slopes Bank Intro Discounted Standard Variable Home Loan · Principal & interest · ≤90% LVR | 5.70%p.a. Comparison* 6.06%p.a. | Variable | OffsetRedrawExtra repays | $3,482 | Compare Lowest |
:format(webp)){kind=small} Horizon Bank First Home Buyer Loan · Principal & interest · ≤70% LVR | 5.74%p.a. Comparison* 5.74%p.a. | Variable | OffsetRedrawExtra repays | $3,498 | |
:format(webp)){kind=small} Laboratories Credit Union Simple Home Loan Owner Occupied · Principal & interest · ≤95% LVR | 5.79%p.a. Comparison* 5.81%p.a. | Variable | RedrawExtra repays | $3,517 | |
:format(webp)){kind=small} BankWAW Back to Basics Home Loan · Principal & interest · ≤59% LVR | 5.79%p.a. Comparison* 6.01%p.a. | Variable | Extra repays | $3,517 | |
:format(webp)){kind=small} Pacific Mortgage Group Owner Occupied Variable Home Loan · Principal & interest · ≤80% LVR | 5.84%p.a. Comparison* 5.84%p.a. | Variable | Redraw | $3,536 | |
:format(webp)){kind=small} Greater Bank Great Rate Home Loan · Principal & interest · ≤80% LVR | 5.84%p.a. Comparison* 5.85%p.a. | Variable | RedrawExtra repays | $3,536 | |
:format(webp)){kind=small} BCU Bank OMG Home Loan · Principal & interest · ≤60% LVR | 5.84%p.a. Comparison* 5.87%p.a. | Variable | Redraw | $3,536 | |
:format(webp)){kind=small} Border Bank First Home Loan · Interest only · ≤98% LVR | 5.84%p.a. Comparison* 5.91%p.a. | Variable | $2,920 |
If you choose to compare with us, our experts can offer you rates from the lenders in our panel only. Some of the lenders shown in our comparison tables are not on our lender panel.
Lowest variable home loan rates for first home buyers
Compare the lowest owner-occupier variable rate home loans for first home buyers (with principal & interest repayments). These loans offer low interest rates and generally come with minimal fees and features.
| Product | Interest rate | Comparison rate* | LVR |
|---|---|---|---|
| South West Slopes Bank Intro Discounted Standard Variable Home Loan | 5.70% p.a. | 6.06% p.a. | 90% |
| Horizon Bank First Home Buyer Loan | 5.74% p.a. | 5.74% p.a. | 70% |
| Laboratories Credit Union Simple Home Loan Owner Occupied | 5.79% p.a. | 5.81% p.a. | 95% |
| BankWAW Back to Basics Home Loan | 5.79% p.a. | 6.01% p.a. | 59% |
| Pacific Mortgage Group Owner Occupied Variable Home Loan | 5.84% p.a. | 5.84% p.a. | 80% |
Lowest variable package loan rates for first home buyers
These are the lowest owner-occupier variable rate package home loans for first home buyers (with principal & interest repayments). These home loans include features like offset and redraw which can help to reduce the amount of interest and free up funds when necessary.
| Product | Interest rate | Comparison rate* | LVR |
|---|---|---|---|
| South West Slopes Bank Intro Discounted Standard Variable Home Loan | 5.70% p.a. | 6.06% p.a. | 90% |
| Horizon Bank First Home Buyer Loan | 5.74% p.a. | 5.74% p.a. | 70% |
| Gateway Bank Green Plus Home Loan | 5.85% p.a. | 6.14% p.a. | 80% |
| Laboratories Credit Union First Home Buyer Loan | 5.85% p.a. | 6.23% p.a. | 95% |
| Police Credit Union Low Rate Home Loan Special Offer | 5.89% p.a. | 5.93% p.a. | 80% |
Lowest 1-year fixed rate home loans for first home buyers
Compare the lowest owner occupier 1-year fixed rate home loans for first home buyers (with principal & interest repayments).
| Product | Interest rate | Comparison rate* | LVR |
|---|---|---|---|
| Community First Bank Go Basic fixed Home Loan | 5.85% p.a. | 5.98% p.a. | 80% |
| Coastline Fixed Rate Home Loans | 5.89% p.a. | 7.43% p.a. | 60% |
| Woolworths Team Bank Fixed Interest Rates | 5.99% p.a. | 6.03% p.a. | 80% |
| Transport Mutual Credit Union Fixed Home Loan | 5.99% p.a. | 6.09% p.a. | 80% |
| Horizon Bank Fixed Rate Home Loan | 6.04% p.a. | 6.53% p.a. | 70% |
Lowest 2-year fixed rate home loans for first home buyers
Compare the lowest owner occupier 2-year fixed rate home loans for first home buyers (with principal & interest repayments).
| Product | Interest rate | Comparison rate* | LVR |
|---|---|---|---|
| Credit Union SA Fixed Home Loan Package | 6.09% p.a. | 6.62% p.a. | 97% |
| BankWAW Fixed Rates Home Loan | 6.10% p.a. | 6.87% p.a. | 59% |
| Pacific Mortgage Group Fixed Home Loan | 6.14% p.a. | 5.89% p.a. | 80% |
| Woolworths Team Bank Fixed Interest Rates | 6.14% p.a. | 6.07% p.a. | 80% |
| Macquarie Bank Basic Home Loan P&I | 6.14% p.a. | 6.08% p.a. | 70% |
Lowest 3-year fixed rate home loans for first home buyers
Compare the lowest owner occupier 3-year fixed rate home loans for first home buyers (with principal & interest repayments).
| Product | Interest rate | Comparison rate* | LVR |
|---|---|---|---|
| Regional Australia Bank Fixed Home Loan | 5.99% p.a. | 6.02% p.a. | 60% |
| Credit Union SA Fixed Home Loan Package | 5.99% p.a. | 6.57% p.a. | 97% |
| Police Credit Union 3 Year Fixed Rate Home Loan Special Offer | 5.99% p.a. | 6.74% p.a. | 80% |
| Woolworths Team Bank Fixed Interest Rates | 6.04% p.a. | 6.06% p.a. | 80% |
| BankWAW Fixed Rates Home Loan | 6.05% p.a. | 6.78% p.a. | 59% |
Lowest 4-year fixed rate home loans for first home buyers
Compare the lowest owner occupier 4-year fixed rate home loans for first home buyers (with principal & interest repayments).
| Product | Interest rate | Comparison rate* | LVR |
|---|---|---|---|
| Macquarie Bank Basic Home Loan Fixed P&I | 6.29% p.a. | 6.16% p.a. | 70% |
| Macquarie Bank Offset Package Fixed | 6.29% p.a. | 6.39% p.a. | 70% |
| Regional Australia Bank Fixed Home Loan | 6.39% p.a. | 6.16% p.a. | 70% |
| Regional Australia Bank Fixed Home Loan | 6.39% p.a. | 6.16% p.a. | 60% |
| People First Bank Fixed Rate Home Loan | 6.39% p.a. | 6.20% p.a. | 80% |
Lowest 5-year fixed rate home loans for first home buyers
Compare the lowest owner occupier 5-year fixed rate home loans for first home buyers (with principal & interest repayments).
| Product | Interest rate | Comparison rate* | LVR |
|---|---|---|---|
| Macquarie Bank Basic Home Loan Fixed P&I | 6.29% p.a. | 6.17% p.a. | 70% |
| Macquarie Bank Offset Package Fixed | 6.29% p.a. | 6.41% p.a. | 70% |
| Great Southern Bank Fixed Rate Home Loan | 6.30% p.a. | 7.30% p.a. | 90% |
| Horizon Bank Fixed Rate Home Loan | 6.34% p.a. | 6.51% p.a. | 70% |
| People First Bank Fixed Rate Home Loan | 6.39% p.a. | 6.23% p.a. | 80% |
What are the lowest first home buyer home loan rates?
Right now, the lowest owner occupier variable home loan rate for first home buyers is 5.70% p.a. (6.06% p.a. comparison rate) South West Slopes Bank Intro Discounted Standard Variable Home Loan 90% LVR
The lowest owner occupier fixed home loan rate for first home buyers is 5.85% p.a. (5.98% p.a. comparison rate) Community First Bank Go Basic 1-year Fixed Rate Home Loan 80% LVR
How can a first home buyer get the best interest rate on their home loan?
- 1
Use a mortgage broker
A mortgage broker will compare a range of options and find you the best home loan rates from their lender panel based on your specific needs and circumstances. Their analysis goes beyond the bigger lenders to find a competitive choice that you might not have considered otherwise. They act as a middleman between buyers and lenders by handling the application process and helping with the complex paperwork. Generally brokering is a free service that charges the lenders instead of homebuyers.
- 2
Focus on basic loans with minimal features
Typically the cheapest home loans with the lowest interest rates don’t have features like offset accounts or the ability to make extra repayments. While these features can be useful in reducing the amount of interest being charged on the loan during the long term, it requires having extra cash spare. Generally, an offset account won’t make much of a difference on interest unless it has a substantial amount of savings, which most first-home buyers won’t have.
- 3
Maximise your deposit
Having a chunky deposit on your house will lower the Loan to Value Ratio (LVR) and could help you avoid paying Lenders Mortgage Insurance (LMI). First home buyers usually enter the market with a 5% or 20% deposit, but generally the lowest interest rates are seen on loans with an LVR between 90-70% which would need a deposit amount of 10% or higher.
- 4
Maximise the property valuation
Lenders use the valuation of a property to calculate the amount of funding they are willing to offer on a loan, which directly impacts the LVR. Lenders have different ways of determining a property’s value so by shopping around you may find an option that will improve your LVR and offer a lower interest rate.
- 5
Consider smaller banks and non-bank lenders
It’s unlikely that bigger lenders, including the big 4 banks, will have the lowest interest rates in the market. Even if you already use their products to save for a deposit or a relative recommends a particular brand, you should make a wider comparison. Generally, smaller banks or non-bank lenders will offer competitive rates in order to draw in customers.
Bonus tip! Refinance as soon as you have built up enough equity
First home buyers probably won’t get the best rate in the market initially, but it is possible to find a lower rate later by refinancing your home loan. After paying down part of the loan and building up some equity in the property, you will be in a stronger position to chase the lowest rates when refinancing.
Home loan options for first home buyers
These are the main types of home loans available to first-home buyers.
What is the best home loan for a first time home buyer?
There’s not a specific home loan that is perfect for all first time home buyers, so it’s important to choose based on how it will best suit your needs and circumstances. Some things to consider include:
The type of loan and interest rate: are you looking for owner-occupier or investment? Variable or fixed interest rate? Should you consider a forty year home loan?
Cost of the loan: What fees apply to the loan? Are they paid up front or ongoing?
The Loan to Value Ratio (LVR): How will your deposit amount impact your LVR? Do you need to pay LMI?
Loan features: Does it have features like offset that will help to minimise the interest cost? Is it better to have a lower interest rate than a loan with features?
Choosing a lender: Do you need to select a lender that participates in a government scheme or initiative? Would you prefer to go with a major lender or see if there’s a better interest rate with a smaller lender?
If you're uncertain it could be worthwhile discussing options with a mortgage broker, who can help simplify the process and find your best loan option.
Are there home loan interest rates that only first home buyers can access?
Yes, some lenders offer specific home loan products for first home buyers. These can offer discounted rates, reduced fees, or sign up incentives like cashback.
They're typically also basic, low-frill products.
There's no harm in taking a look at these products, but ultimately as a first home buyer, you can apply for most home loans, even those not explicitly designed for first home buyers.
Don't limit yourself to loans with 'first home' in the name. You could well find better rates by throwing your net wider.
Government support for first home buyers
Finding a home loan with a low interest rate isn't the only thing first home buyers can do to get the best financial income when buying a home. Using a government scheme or initiative can help to get your first property quicker or increase your deposit amount.