Residential Property

Owner Occupied Home Loans: Your Path to Home Ownership

Your Journey to Buying a Home Starts Here

Buying a home to live in is one of life’s biggest milestones — and we’re here to make it simple. At Frontier Finance Co., we guide you through the home loan process with expert advice, tailored recommendations, and access to over 40 trusted Australian lenders.

Whether you're a first home buyer or upgrading your forever home, we’ll help you find the perfect owner occupied home loan to suit your needs and lifestyle.

What is an Owner Occupied Home Loan?

An owner occupied home loan is a mortgage designed for buyers who intend to live in the property they are purchasing. These loans typically come with
lower interest rates and more flexible features than investment loans, as lenders view them as lower risk.

This makes them a great option for: First home buyers, Growing families looking to upgrade, Homeowners refinancing from investment to owner-occupied status.

Key Factors to Consider:

Deposit Requirements:

A typical deposit is 20% of the purchase price. A larger deposit can:

Lower your Loan-to-Value Ratio (LVR)
Help you avoid Lenders Mortgage Insurance (LMI)

But don’t worry — low deposit options (as low as 2%) are available through specialised lending solutions, government schemes and and offers for eligible professionals, including:

Teachers & early childhood educators
Health, aged care, and disability support workers
Police, paramedics, and firefighters
Public transport workers
Flight crew and pilots
Medical professionals

We'll help you explore every available pathway.

Loan-to-Value Ratio (LVR): This is the percentage of the property value that you are borrowing. It's calculated as (Loan Amount / Property Value) x 100. A lower LVR means a lower risk for the lender, which comes with a better interest rate and none or reduced LMI for all borrowers.
Interest Rates: Interest rates can be fixed, variable, or a combination of both (split loan).
- Fixed rates offer repayment certainty for a specific period (e.g., 1 to 5 years) but may not allow for extra repayments or offset accounts. After the fixed period, the loan usually reverts to a variable rate.
- Variable rates fluctuate with market conditions, meaning your repayments can increase or decrease. They often offer more flexibility with features like redraw facilities and offset accounts.
- Comparison Rate: This is a single figure that includes the base interest rate plus most fees and charges related to the loan. It's a useful tool for comparing different loan products.
Loan Term: This is the length of time you have to repay the loan, typically 25-30 years but up to 40 years. A shorter loan term means higher monthly repayments but less interest paid over the life of the loan. A longer term can help boost your borrowing capacity, but you'll pay more interest over the life of the loan.
Repayment Options: Most owner-occupied loans offer principal and interest repayments, where each payment reduces both the loan amount and the interest. Some lenders may offer interest-only periods, but these are usually for a limited time.
Fees and Charges: Be aware of potential fees such as application fees, valuation fees, legal fees, and ongoing account-keeping fees. The comparison rate aims to include most of these.
Government Assistance: Various schemes and grants are available, particularly for first home buyers. These can include the First Home Owner Grant (FHOG) and the Home Guarantee Scheme, which can help with deposit requirements. Eligibility criteria and amounts vary depending on the state or territory and the specific scheme. For example, in Queensland, the First Home Owner Grant is currently $30,000 for new homes with contracts signed between 20 November 2023 and 30 June 2025, provided the property value is under $750,000. The Australian Government's Home Guarantee Scheme assists eligible first home buyers (and others who haven't owned property in 10 years) to purchase a home with a deposit as low as 5%, with Housing Australia providing a guarantee to the lender.
Offset Account: This is a transaction account linked to your home loan. The balance in the offset account "offsets" the loan balance, reducing the amount of interest you pay. For example, if you have a $500,000 loan and $50,000 in an offset account, you will only be charged interest on $450,000. These cost extra money, so it's important to discuss this with us at your appointment.
Redraw Facility: This feature allows you to access any extra repayments you've made on your home loan. This can provide financial flexibility but ensure you understand any conditions or fees associated with redraws.

Steps for an Owner Occupied Home Loan:

Here’s a simplified view of what’s involved — but with Frontier Finance Co., we handle the hard stuff so you can focus on house hunting.

Assess Your Financial Position
We'll help you understand your income, expenses, and borrowing power.
Compare Home Loan Options
We access over 40 lenders to match you with the most competitive rates and features.

3. Get Pre-Approval
Be confident to make an offer with our no-obligation, in-depth pre-assessment.

4. Find Your Property
Begin your search with a clear budget and strong pre-approval.

5. Make an Offer
Sign the contract of sale and let us take over the loan application.

6. Submit Formal Application
We’ll gather documents, liaise with the lender, and manage the valuation.

7. Loan Approval & Settlement
Once approved, we’ll help review the documents before final settlement.

You’ll be collecting the keys — and we’ll be cheering you on from the sidelines!

Useful Resources:

Moneysmart.gov.au: Provides independent financial guidance on home loans.
Housing Australia (housingaustralia.gov.au): Information on government home ownership schemes.
or Contact Us now for an free, no obligation chat and assessment.

Book Your Free Consultation Now

Inquiry | Call 0413 798 731 | email: info@frontierfc.com.au

Frontier Finance Co. – Loan Specialists for Australians who want more for their future.

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