Explore All Options With Westpac's First Option Home Loan

Rising property prices have resulted in many would-be home buyers being priced out of the market. To respond to the needs of this group of potential customers, banks are continually developing suites of home loan products.

 

To make a home loan more attainable for first time buyers, Westpac have developed a First Option Home Loan.

 

First Option offers first home buyers a lower variable interest rate, but it's important to remember that this lower rate is only lower relative to Westpac's variable rate, and may still be higher than the rate offered by other lenders. To get the discounted rate, you will need to first be eligible for the First Home Owners Grant and meet the criteria set out for this grant.

The Westpac Home Loans team are able to offer you advice on which Westpac home loan product is best suited to your needs; but for first homebuyers, an unbiased mortgage broker who has access to the loans offered by a number of bank and non-bank lenders may be most advantageous.No deposit? No problem, say Westpac. If you're a first home buyer, Westpac can offer you the choice of borrowing up to 100% using the equity in your parents home, or still borrow up to 100% without guaranteed security but take on the added cost of lenders mortgage insurance. This means that Westpac is covered if you happen to miss a repayment.

Not needing a deposit and being able to borrow up to 100% of your loan may sound like a trip down Easy Street, but you will still need to save up for additional costs like stamp duty, taxes, fees, insurance, legal fees and estate agent fees. The costs you will need to cover on top of your mortgage can definitely add up. Plus to apply for any home loan, you will need a good credit history and most lenders will need you to show around six months of proven savings history.

Whatever lender they decide to borrow from, it is advisable for any first home buyer to save as much as possible for a deposit, and check that you can afford to make regular repayments. Then shop around for not only the best interest rate, but a loan with the features and flexibility that you may need in the future.