BSB 805 050

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BSB 805 050

Buy my first home

As first home buyer you don't have to be an expert in buying property. With our first homeowner guide we help you enjoy every step of the journey.

Ask yourself: Where is my dream neighbourhood?

Check property prices in your dream neighbourhood. This helps you understand how much you need to spend on your first home. Our People's Choice of Housing can provide you with up to date information on the most affordable and liveable suburbs that might help you in your research.

Read the housing report

Before you make an offer on a property, you need to have enough money saved up for a deposit. The deposit amount required depends on the property price in the chosen neighbourhood. Ideally if you can cover 20% of the purchase price you will avoid having to pay Lender's Mortgage Insurance (LMI)1.

Step 1 for first home buyers: Find a neighbourhood you like.

Free First Home Buyer Guide

What does LVR stand for? What is the first home owner grant (FHOG)?
Learn the terms you need to know when buying your first home with our free guide.

First Home Buyer Guide


With our savings calculator you can see how much you should put aside to reach your deposit savings goal.

Found your dream home but haven’t got enough saved for a deposit yet?
You may be able to borrow 100% of the purchase price if your family acts as a guarantor2.

Consider how much you can afford to borrow and calculate possible repayments.

Knowing the cost for your home, let’s take a look at how much you can borrow.
Some factors we look at to determine how much we can lend you are:

  • Your income. Home loan repayments should be less than 30% of your after-tax salary.  Tip: Calculate your net income here.
  • Show a strong savings history. Save for a deposit for at least 3 to 6 months.
  • Your credit history. Pay off any existing debt as soon as possible.
  • deposit of 20% plus fees (conveyancer, stamp duty, building inspection, etc) is recommended, however you may have the option to consider LMI (Lenders' Mortgage Insurance) if your deposit is less than the recommended amount. View here for more information on LMI.

First Home Loan Deposit Scheme

We could help you buy your first home sooner with a deposit as little as 5% to get a home loan without paying Lenders Mortgage Insurance  (LMI) fees.

Click here to learn more

Remember to insure yourself and your family for unpleasent scenarios.

Your first home insurance options are:

Protect your first home and your family.

Prepare with a savings budget

Write up a budget for your savings.

This will show you how much you can afford to save and give you a feel for dealing with home loan repayments later on.

Now make the most of your savings and store them in a high interest savings account with no monthly fees:

High Interest Savings Accounts

You have been saving for a deposit for 3 to 6 months?

Let's get your pre-approval ready!

Consider additional costs!

There are a few extra costs first home buyers need to prepare for, such as Stamp duty.

Calculate below to understand the cost of stamp duty:

Stamp Duty Calculator

Other upfront costs may include legal costs, taxes and other fees depending on the state you buy in.
Speak to a Home Loan Adviser for more information.

Almost done: Get a pre-approval.

What is a pre-approval?

Pre-approval means getting the approval and paperwork for a home loan out of the way so you are ready to shop for your first home.

The biggest advantage:
Showing a home loan pre-approval when placing an offer on your dream home puts you in front of other buyers!

Plus, having a pre-approval provides you with the certainty of how much you can borrow and can keep you from looking at properties outside your price range.
Home Loan Adviser can tell you the conditions for pre-approval and which home loan suits you best. 

Our experts will also discuss first home buyer grants and stamp duty concessions available in your state or territory and check your eligbility.

We have a range of product options available to you for your first home, get an overview of our fixed rates, variable rates and line of credit products here.



Ready? Let’s apply for your pre-approval.

 Enquire about a Home Loan now

You will receive a response from us within 48 hours.

A pre-approval can get you in your first home sooner.



    A split loan is a home loan that offers a loan to be split over a variety of product types, including variable, fixed and line of credit products. You can define which amount of your loan is split into each product type. 


    This is professional who is legally qualified to assist in preparing all of the legal documents that are part of any real estate transaction. They will act for you and with you when it comes time to purchase, sell or transfer property. They can also be known as a Settlement Agent.


    A valuation is the assessment of the property value as determined by the lender or external valuer, often based on the property purchase price. 


    Stamp Duty is a tax each state or territory government charges on the sale of your property. Stamp Duty is designed to offset the costs of the legal documents for the purchase transaction and varies depending on which state or territory you purchase in.


    The settlement is the final step when buying a home. Settlement is the date the property ownership is legally transferred from the seller to the buyer. At settlement, often known as closing, all parties involved in the loan transaction sign the necessary legal documents, then they are lodged and funds transferred to your new loan account, this is when your mortgage loan responsibilities start.


    Property share means you co-own a property with family or friends, while retaining control over your own mortgage. 


    A pre-approval is a conditional approval for a loan. Obtaining a pre-approval before looking for a property means getting most of the paperwork for a home loan out of the way, so you know your price range and are ready to proceed when you find the right home for you. 


    A redraw facility allows you to access extra repayments you have made on your loan. Your extra repayments are funds paid into the loan above your contracted minimum repayment. Availability of redraw facilities and redraw limits differ across product types.


    Property Value, often called valuation, is the assessment of the value of your property as determined by the lender or external valuer.


    As opposed to fixed interest rate, a variable interest rate changes when the market interest rate changes. This means your repayments will also vary.

  • How much is Lenders' Mortgage Insurance?

    The cost of LMI generally depends on the borrower's LVR (Loan to Value Ratio) and amount of money they need to borrow. The cost can vary depending on the lender. For more information on LMI when taking out a Home Loan at People’s Choice please speak to one of our Home Loan Advisers or call 13 11 82.

  • How does Lenders’ Mortgage Insurance work?

    LMI is a once-off payment made by the borrower at the time of loan settlement, which protects the lender should the borrower no longer be able to meet their loan repayments.

  • What is Lenders' Mortgage Insurance?

    Lenders' Mortgage Insurance (LMI) is an insurance that protects the lender in the event of default by the borrower. 

  • When is LMI needed?

    LMI may be required if the borrower doesn't have a minimum of 20% deposit to take out a home hoan.

  • How to avoid Lenders’ Mortgage Insurance?

    To avoid Lenders’ Mortgage Insurance it is generally recommended the borrower keep their LVR (Loan to Value Ratio) below >80% plus any fees (conveyancer, stamp duty, building inspection, etc). If the borrower has a deposit of 20% or more of the property value, then they may not be required to pay LMI. For more information on whether you’ll need LMI please speak to one of our Home Loan Advisers or call 13 11 82.


    A loan in which, for a set term, the borrower is required to pay only the interest on the principal balance.


    A loan that is subject to principal and interest repayments from the commencement to the conclusion of the loan term.


    Means that you can make additional repayments above the contracted repayment amount. These can be adhoc, regular, large or small additional payments. Extra Repayments assist in repaying your loan back faster and saves on interest.


    The Loan Offset account is a transaction account that is linked to a variable home loan. The balance of the offset account effectively offsets the balance of the home loan, helping you to pay the loan off faster.


    An owner occupied home loan is a loan for personal purposes, available to home buyers who intend to live in the property the loan is taken out for. Owner occupancy applies to loans where the borrower is buying an existing home, building a new home or renovating and improving an established property they live in.


    The deposit is a portion of the price of a property that you need to pay upfront when exchanging the purchase contracts. Ideally you should have at least 20% of the property price saved up for a deposit when applying for a home loan, otherwise you might have to pay Lender’s Mortgage Insurance (refer definition for LMI) on top of your loan.


    Credit rating is an assessment of your credit-worthiness. The credit rating is used to determine the risk you present to a lender, based on your borrowing and repayment history.


    The establishment fee, often referred to as ‘Application  Fee’ or ‘Up Front Fee’,  are the fees  a lender might charge to cover their internal costs of processing your loan application.


    The equity of your property is the market value of the property less the outstanding loan amount. This means the value of your home equity increases as you pay off your mortgage.


    A comparison rate combines the interest rate and any fees and charges that relate to a loan into a single percentage, based on repayment frequency and terms of the loan. This way the comparison rate helps you understand the true cost of a loan and allows you to compare loans between lenders more easily.


    Some loans have annual fees to cover costs or additional services available on the loan. Annual fees are generally charged on the date of disbursement and then annually on this anniversary date. The value of the annual fee and the charge date are outlined in the loan conditions and your contract.


    An additional payment is any extra repayment you contribute to your loan above the minimum loan repayments.  Some loan products (in particular fixed) may have limitations on the amount of extra repayments you are able to make. Ensure you check the terms and conditions of your product to confirm how much you can pay into your loan each year. 


    Next to your income and credit history, lenders determine the amount you can borrow by looking at your assets. Assets are the valuables you own, such as your savings accounts, any cars, existing home contents, your superannuation, investment shares and such. 


    Application fees are the charges you may have to pay to the lender to cover their internal costs of processing your loan application. This fee may also be referred to as an ‘Establishment Fee’ or ‘Up Front Fee’.


    When you don’t have enough money saved up for a deposit, your family can act as a guarantor if they hold equity in their own property. The family guarantee can only cover the deposit and related fees and charges involved in the purchase of your home.


    The loan term is the duration of your loan. Most loan products offer terms of up to 30 years. People’s Choice Credit Union offers loan terms of up to 40 years for eligible first home buyers.


    Lender’s Mortgage Insurance (known as LMI) is an insurance that protects the lender in the event of  default by the borrower. LMI is a one-off payment that usually occurs when more than 80% of the property value is borrowed by a home buyer. You can pay the cost for LMI upfront at settlement of your loan or it can be capitalised into your home loan.


    Some loans have monthly fees to cover costs or additional services available on the loan. Monthly fees are generally charged on the last day of each month. The value of the monthly fee and the charge date, are outlined in the loan conditions and your contract.


    The loan to value ratio (LVR) is a calculation using the amount of your loan compared to the appraised value of your property. To calculate the LVR, simply divide the loan amount by the property value.
    As an example, if you need to borrow $350,000 and your property is appraised at $420,000 the LVR is 83%.


    Investment loans are funds borrowed with the intended use of creating wealth or an income source. An investment loan is mostly used for the purpose of a purchase, construction or refinance of a home that will not be owner-occupied.


    A fixed interest rate is a locked-in rate that won’t change during a set period of the loan, so you know exactly what your repayments will be.


    The First Home Owner Grant (or FHOG) is a scheme funded by some states and territories to assist first home owners buy, or build, a home. Eligible first home buyers get paid a one-off grant and the amount is determined by the date of the eligible purchase. Eligibility criteria and grant amounts vary, so check with your state or territory via this website 


    A home loan, or mortgage, is a loan you borrow from a financial institution to buy a home. Home loans usually require repayments weekly, fortnightly or monthly and will generally run for a term of up to 30 years. The lender secures the mortgage against your property, so in case you are unable to repay the loan you might be required to sell your home to settle any outstanding debt.


    A Home Loan Package from People’s Choice Credit Union offers interest rate and fee discounts for an annual fee for our members, not only on their home loan but on a wide range of our products and services. 


Please call us on 13 11 82 to arrange a Home Loan Adviser to contact you. Alternatively you can apply for your home loan online.

1Ideally the deposit should be 20% of the property price; otherwise you may have to pay Lender’s mortgage insurance (LMI) on top of your loan amount. See conditions of your contract for more details or speak to a Home Loan Adviser at 13 11 82.

2Loan must be a principal and interest loan (as opposed to an interest only loan) to qualify for the family guarantee.

Terms, conditions, fees, charges and lending criteria apply and are available on application. 

The information above is general advice only and does not take into consideration your personal objectives, financial situation or needs (“your personal circumstances”). Please consider the relevant Disclosure Documents and your personal circumstances before making any decision to purchase the products. Contact us on 13 11 82 with any questions, or visit your nearest branch to talk to a consultant.

General insurance (including Travel Insurance) is issued by Insurance Australia Limited ABN 11 000 016 722 AFSL 227681 trading as CGU Insurance. All our insurance issuers pay commission at rates which range from 0% - 40% of the base premium. The commission rate varies depending on the type of insurance.

People’s Choice Credit Union, a trading name of Australian Central Credit Union Ltd. ABN 11 087 651 125 Australian Financial Services Licence 244310, acts under its own Australian Financial Service Licence and under an agreement with the insurer Insurance Australia Limited ABN 11 000 016 722 AFSL 227681 trading as CGU Insurance. 

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