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First Home Buyer Loans

There are four loan types available to first home buyers, they are –

Guarantor Loans
Guarantor Home Loans are the only way to borrow between 100% and 110% of the purchase price for a property, how much you can borrow using a guarantor loan may vary depending on the lender. Your guarantor will provide a guarantee for your home loan which is secured to their property, In most cases your parents would provide your guarantee.
First Home Buyers are able to borrow up to 105% of the property value and have their LMI Premium eliminated.

5% Genuine Savings
What are genuine savings? Every lender will have specific policies for Genuine Savings, typically savings held in your name for 3 months are classified as genuine savings.

  • Savings held or accumulated over 3 months
  • Term Deposit held for 3 months
  • Salary sacrificing under the First Home Super Saver Scheme can also count towards your genuine savings as long as you have held the funds for 3 or more months
    https://www.ato.gov.au/General/New-legislation/In-detail/Super/First-home-super-saving-scheme/

10% Non-Genuine Savings
Non-Genuine savings are just that; not genuine. As the banks are unable to see that you have saved the deposit they will often require a larger amount of a minimum 10%, these can be made up of the following but as always there can be exceptions:

  • Gifts or Inheritance
  • Tax Refunds or bonuses
  • Developers rebates or incentives

Rental Policy
This is where you are able to use your rent as genuine savings. If you can provide a strong rental history some lenders will make an exception to their to their normal genuine savings policy and consider your application provided you meet the following criteria:

  • You are currently renting
  • You have a minimum 6 months rental history with satisfactory rental payments made on time
  • Tenants on the lease must be the same as the borrowers on the home loan application

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