Home loans and first home buyers

Whether it is your first home or your next one, the loan you choose shapes your budget for years. Zafar helps you understand what you can borrow, compares loans from the lenders on his panel, and handles the application.

What Zafar can help with

• Buying your first home, or selling and buying your next one
• Working out a realistic borrowing range before you start looking
• Pre-approval, so you know where you stand before an auction or offer
• Comparing loan features such as offset accounts, redraw and fixed or variable terms
• Preparing and lodging the application, then following it through to settlement

Your deposit and lenders mortgage insurance

Lenders mortgage insurance (LMI) is usually a one-off cost when the amount you borrow is more than 80% of the property's value. As Moneysmart points out, LMI protects the lender if a borrower cannot repay; it does not protect you. A smaller deposit can still make sense, but it is worth knowing what LMI would add before you decide. See how much deposit you need.

Government home buyer support

The Australian Government's 5% Deposit Scheme and Help to Buy scheme are administered by Housing Australia. Each state and territory also runs its own support, such as first home owner grants and stamp duty concessions. Our state-by-state tracker compares them, with a link to each official source. Each scheme has its own eligibility rules and limits, set by those bodies and changed from time to time. If you think you may be eligible, Zafar can talk through how that support fits with a loan from his panel.

Fixed or variable

A fixed rate gives certainty for a set period, but you may pay a break fee if you change or repay the loan early. A variable rate can move up or down at any time. Some borrowers split a loan between the two. There is no right answer for everyone; it depends on how much certainty you need and how likely your plans are to change.