Best lenders for first home buyers

Start with scheme participation, not the rate

Only participating lenders can write a First Home Guarantee loan. If you qualify for a 5% deposit with no LMI, that saving dwarfs the difference between a good rate and a great one — so the participating list is your starting shortlist.

From there, compare rate and fees within that list rather than across the whole market.

Deposit source rules differ more than you'd expect

• Gifted deposit: some lenders accept a gift with a simple statutory declaration; others require it seasoned in your account for three months.
• Rent as genuine savings: accepted by many lenders with 12 months of ledger from an agent, rarely accepted for private rentals.
• First Home Super Saver release: universally accepted, but timing the release against settlement needs planning.

Speed and pre-approval quality

A system-generated pre-approval with no credit assessment is worth very little at auction. Ask for a fully assessed pre-approval — the lender has actually verified income and run credit — and check the validity period.

Turnaround times swing wildly with volume. In busy periods a second-tier lender assessing in two days beats a major bank quoting fifteen.

A note on rates

Rates and policies change constantly, and every lender prices to its own funding costs and risk appetite. Nothing on this page is a rate quote — it's a guide to how these lender types differ so you know where to look.