Home » Uncategorized

First Home Buyer’s Guide to Home Loans and Applications

Buying your first home is a very exciting and often daunting experience. To protect yourself from signing onto a mortgage or loan that you may regret later, it’s always best to do your research and speak to a professional. Not sure where to start? Read the following first home buyer’s guide to help choose the most suitable loan, and learn how to optimise your application.

Understanding Different Types of Home Loans

If you’re a first home buyer, discovering the sheer amount of available loans can be overwhelming. Taking the time to deconstruct each loan suited for first home buyers can make all the difference. Here are the main types of loans you’re most likely to come across during your research.

Fixed Loans

Fixed loans are beneficial for home owners who have a set budget, as these loans have a ‘fixed’ interest rate for a predetermined period of time – usually three to five years.

Variable Loans

Variable loans are incredibly popular, as these are more flexible for home owners. The rates are not fixed, meaning they may rise and fall throughout the course of your loan.

Split Loans

Often described as the ‘best of both worlds’, these types of loans allow the home owner to determine which part of their loan is fixed, and which part is variable. If you require flexibility in your loan, this may be for you.

Getting pre-approval for your home loan


Did you know you have the option to be pre-approved for a home loan even before you find your dream property? This makes sense on two accounts: peace of mind to have the money waiting, and time management. Receiving pre-approval may also give you more bargaining power when you do find a property you want – as real estate agents often accept a lower offer knowing the property will be sold. If you’re serious about buying, having a pre-approved loan will make the process a whole lot easier. Be sure to talk to an experienced lender, mortgage broker or lending institution to see whether this could be an option for you.

Applying for a home loan

While lending institutions may offer different home loan options and their processes may differ, what they will require from you remains the same. Lenders are very meticulous throughout the application process, as they want to be sure you will be able to make your weekly, fortnightly or monthly repayments. To be prepared for your application you will need:

  • Proof of your monthly income
  • Your current employment details
  • Bank statements
  • Details of any other debts/loans you have in your name
  • A copy of the contract of sale and transfer of land
  • Your solicitor/conveyancer contact details
  • A valuation of the property

Once given this information, the lender will run a credit check to ensure you have a satisfactory credit history. After you have passed this, the lender will conduct a valuation of the property to ensure it is suitable security for the loan.

If you’re still feeling overwhelmed, have a chat with an experienced lender – many offer their services for free, so you know you’re getting professional advice without any added cost.

Photo of author

Janine Mergler

Janine Mergler is a veteran Queensland teacher, graduating from QUT with a BEd majoring in Social Sciences. After many years in the classroom, Janine moved on to academia. She has proudly trained new generations of teachers in her role as a lecturer at Queensland University of Technology Faculty of Education. She has also worked in the Queensland Government as an education specialist, developing education resources and delivering community awareness programs to help families conserve water. Currently she is the owner and editor of Families Magazine, a publication specifically targeted at parents who value a quality education for children.  Janine leads a team of professionals who write about family lifestyle, early childhood, schools and education information and family-friendly events.

Leave a comment