Best First Home Buyer Loans in Australia (2025 Guide): Deposits, Grants, LMI, Rates & Eligibility
Buying your first home in Australia? This 2025 first-home buyer guide explains how to secure the best loan, maximise your borrowing power and take advantage of government grants like the FHOG and First Home Guarantee (FHG). Matcheroo compares real first-home buyer loan options based on your profile—deposit size, LVR, income type, location, eligibility rules and lender policy—so you only see loans you can actually qualify for. We analyse rates, LMI costs, guarantor options, cashback deals and features to help first-time buyers get approved faster and enter the property market sooner with confidence.
How we compare first-home buyer loans
You answer a short set of questions. Our engine maps your details to live lender policy, pricing and fees, removes mismatches (servicing rules, postcode/security limits, LMI thresholds) and ranks the fits. A credit specialist checks edge cases before we send your shortlist.
Deposit, LVR and LMI (quick guide)
A bigger deposit lowers your LVR and can unlock sharper pricing. Above 80% LVR, LMI often applies; we estimate this and show total cost so you can weigh “borrow more now” vs “save more first”.
Guarantor & family pledge options
Some lenders accept a guarantor/family security to reduce or avoid LMI. We outline eligibility, risks and how much equity/security a guarantor would need so everyone knows the obligations up-front.
Fixed vs variable for first-home buyers
Fixed = repayment certainty but possible break costs and limits on extra repayments.
Variable = flexibility, easier offset use and typically unlimited extra repayments/redraw. Many first-home buyers choose a split to balance certainty and flexibility.
Grants, concessions & schemes
We flag any government schemes and stamp duty concessions you may be eligible for and explain how they interact with LVR, timing and purchase price caps. (We’ll include links and conditions in your shortlist summary.)
Eligibility & documents
Have recent payslips or BAS, bank statements, ID and property details ready. If you’re pre-approving, we’ll list the documents each lender requires so you can move faster once you find a property.
Helpful tools: Borrowing power → /calculators/borrowing-power · Repayments → /calculators/repayments · Fixed vs variable → /fixed-vs-variable
FAQs
How much deposit do I need as a first-home buyer?
Many lenders prefer 20% to avoid LMI, but lower-deposit options exist. We model LMI, pricing and total cost at different LVRs.
Can I buy with a guarantor?
Often yes, subject to policy and the guarantor’s equity/income. We outline obligations and alternatives in plain English.
Do first-home buyers get better rates?
Not automatically. Pricing depends on LVR, product and policy on the day. We show real options you’re likely to qualify for, with fees and comparison rates.
Will matching affect my credit score?
No. There’s no hard credit check until you choose to apply.
How long does pre-approval take?
It varies by lender and documents provided. We set realistic timeframes and align lender choice to your target dates.