Find the best Home Loan for you
The calculator below helps you determine the interest rate and loan repayment based on your loan amount and product selection. Please speak to an accredited Regional Australia Bank lender to ensure the product you select aligns with your financial goals. The calculator is intended as a guide to help you better understand your options.
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Buying your first home?
It can be hard to know where to start. We’re here to make it simpler.
Buying your first home can feel overwhelming. You’re not alone.
Buying your first home is exciting, but it also comes with a lot of questions. How much do I need to save? Where do I even start? What if I get it wrong?
This guide is here to help you understand the process, step by step, in plain English. No pressure, no rush. Just the information you need, when you need it.
I'm not sure where to start
That’s completely normal. Most first home buyers feel unsure at the beginning. The important thing to know is you don’t need to have everything figured out to take the first step.
The guides below can help you understand how much you could borrow, what deposit you might need, and the extra costs to expect beyond the purchase price.
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Home loan calculators
If you are just starting out, calculators can help you explore what buying your first home might look like. They are a simple way to get a feel for your borrowing power and potential repayments, without any commitment.
Are there any grants or schemes that can help me?
Many first home buyers are surprised to learn how much support is available. You may be eligible for grants, reduced stamp duty, or government-backed schemes that help you buy sooner.
Eligibility can vary by state and situation, so it’s worth checking what applies to you.
What can count towards a deposit?
Genuine savings are the typical source for a home loan deposit. These savings can be classified as monies held for three months or more in Bank Accounts / Term Deposits.
There are also a variety of other options that can be counted towards a home loan deposit.
These include:
- Equity in Residential Property
- Funds from sold investments such as shares
- Employee funded additional superannuation (not mandatory employer contributions)
- Redraw/additional advance Funds in a Mortgage, Personal Loan or Line of credit
- Proceeds of Sale of other assets
- First home owners grants
- A non-repayable gift from a family member
- Inheritance
What is lender's mortgage insurance (LMI)?
Lender's Mortgage Insurance is a third-party insurance premium put in place to protect the lender if you're unable to repay your home loan. This is required when borrowing more than 80% of the property's purchase price/value.
Can I get a First Home Owners Grant from the Government?
There is a range of different grants first home buyers may be eligible for, these include:
- The First Home Super Saving Scheme - First home buyers can contribute an additional $30,000 to their deposit by taking it from their super fund. This can be done by making up to $15,000 each financial year in additional voluntary contributions.
- First Home Owner Grants - Under the scheme, a one-off grant is payable to first homeowners that satisfy all the eligibility criteria.
- Transfer Duty or Exemption - As a first home buyer, you may be eligible to receive an exemption or concession on your transfer duty (previously known as stamp duty).
- The General Stream - Under the Australian Government 5% Deposit Scheme, Housing Australia now offers unlimited guarantees each financial year, allowing eligible home buyers to purchase a home with a deposit as low as 5% of the property value. There is no cap on the number of guarantees available, and eligible buyers can avoid paying Lenders Mortgage Insurance (MLI).
How do I apply for a home loan?2
It's simple. Visit our home loans page and apply online today! A Home Lending Specialist is also available to assist with any of your questions and your application.
Is fixed or variable better?
Deciding on a fixed or variable home loan is an important decision when purchasing a home. There is a range of essential factors and benefits which will assist you in this decision-making process.
One of the main differences between fixed and variable, is that with a variable rate home loan, you are able to make extra repayments that you can redraw at any time. This could allow you to pay off the loan quicker and reduce the amount of interest that is charged.
We have specialist staff that will work with you to help you weigh up each loan's advantages and disadvantages, along with an assessment of your current personal and financial situation. That information will help you be able to determine how best to pay off your home loan.
A great way to compare the differences at home is to use our handycomparison toolto put each loan side by side and discover the main differences.
How much home loan deposit do I need?
To get formal approval for a home loan, you will need a deposit that is at minimum 20% of the purchase price/value of the property, plus costs such as stamp duty, government registration costs & your solicitor or conveyancing costs.
If you do not have a substantial deposit saved, your lender may be able to provide you with a home loan with as little as a 5% deposit, by taking out Lenders Mortgage insurance.
It may also be possible for loved ones to act as a guarantor for the amount you need for a deposit for a short period. If this sounds like an option for you, then check out our Head Start Family Guarantee Home Loan for more information.
What costs do I need to consider?
There are many different costs to consider when purchasing a property and everyone's circumstances are slightly different. Your lender will be able to provide you with guidance on how and when these costs may be charged.
These costs may include:
- Deposit
- Stamp duty
- Legal fees and solicitor/conveyancing costs
- Property valuation costs
- Lenders mortgage insurance if applicable
- Building and pest inspections
- Bank, Government and 3rd party fees as set out in our fees and charges brochure
- Home and contents insurance
What is a fixed rate home loan?
A fixed-rate home loan is when the borrower elects for their interest rate to be locked in for a period of 1 to 5 years and not change like a variable rate home loan. The main advantage of a fixed rate home loan is the certainty of knowing what your repayments are going to be for that period. When purchasing a property with a fixed rate, you'll be protected from interest rate rises but not benefit from an interest rate drop. Fixed home loans offer confidence to plan and set financial goals. At the end of the fixed rate period, you can elect to re-fix for another period or convert to a variable rate home loan.
What is an interest-only loan?
For an agreed and limited amount of time only, you can elect to pay off just the interest that your financial institution is charging on your home loan, without actually paying off any of the principle and reducing the size of the borrowed amount. An example of this structure would be a client who is in the process of building a property and the facility would be interest only for 12 months during construction.
FYI: We also look at interest-only repayments for Head Start Guarantees – the larger loan in the borrowers name is put on interest-only for 48 months to allow the additional guarantee loan/ portion to be paid off quicker to release the guarantor's liability earlier.
We will convert a loan to an interest-only for other reasons – each case is considered on its own merits.
What is a split loan?
A split loan is when you want to have your cake and eat it too. It is a combination of both variable and fixed rates for your home loan. You can elect for a portion of your home loan to be fixed and the other portion of it to be variable. Use our handy split loan calculator to find out if and how much of your loan you might want fixed.
What is a variable rate home loan?
A variable rate home loan is a home loan with an interest rate that is subject to change. The Australian and global economy plays the most significant role in effecting Australian home loan interest rates as the Reserve Bank of Australia (RBA) elects Australia's official cash rate. Changes in market interest rates and business decisions made by the lending institution can also play a part in varying an interest rate.
What is Loan to Value Ratio (LVR)?
Loan to Value Ratio (LVR) is a measurement of the property value vs the loan amount, as a percentage. This can also give an indication of the minimum deposit required. E.g. With a property security value of $400,000, 80% of the value is $320,000, therefore a 20% deposit would be 80,000. If for the same property and only a loan of $100,000 is required, the LVR would be 25%.
Why choose Regional Australia Bank for your first home loan?
Support from people who understand first home buyers
Get guidance from local home loan specialists who explain things clearly and help you move forward at your pace.
Simple ways to get started
You can explore your options, ask questions and understand what’s possible before committing to anything.
Flexible loan options as life changes
Choose how your loan works today, with the ability to adjust features over time if your circumstances change.
Help from start to settlement
From early questions through to getting the keys, support is available when you need it.
Disclaimers
1
This article does not constitute formal advice from Regional Australia Bank Ltd and this information has been provided for general information purposes only.
2
Regional Australia Bank is the issuer of the product.