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What type of home loan is best if I’m a first home buyer?

Before choosing a loan type, the first step is to ensure you have a large enough deposit for your property. You should consider that if you’ve saved less than 20% of the property's value, you’ll be required to take out Lenders Mortgage Insurance (LMI). We will not be able to lend to you if you've saved less than 10% of the property's value.

The type of loan and interest repayment type you then choose will depend on your circumstances. We offer fixed rate or variable rate loans, with either Principal and Interest or Interest Only repayment types.

Many first home buyers choose a variable interest rate loan, as these can come with features that can help you to pay the loan off quicker. Some people do opt for a fixed rate loan - the advantage of this is you know how much your repayments will be, allowing you to stay on top of your budget. At Qantas Money Home Loans, both variable and fixed rates come with redraw facilities and the option of an offset account. This gives our customers more flexibility to manage their repayments, regardless of which loan type they choose.

Many first home buyers also choose a principal and interest repayment type, allowing them to pay off their loan amount with interest. If choosing an interest only loan, you should consider the interest only term (from 1-5 years) carefully, and budget for a change in repayments once this ends. 

Whichever type of loan you choose as a first home buyer, you may want to consider the interest rate, the loan term, fees and features you’re likely to use. You should also get professional financial advice to better understand your options. If you need any help deciding which Qantas Money Home Loan suits your needs, give one of our Qantas Money Home Loan experts a call on 1300 992 700, they'll be happy to go through your options with you.

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