Customer-owned bank boosts first home buyer affordability with 40 year loans

10 September 2025

• Loan terms now available for up to 40 years
• One of the few longer term loans in the market
• Offered to first home buyers
• Potential for lower monthly repayments
• Youth appeal - one third of GenZ and millennials would consider a home loan for 40 years

Great Southern bank is offering variable home loans with terms of up to 40 years, making it easier for first home buyers to enter the property market with lower monthly repayments.

The loan reflects the bank’s purpose of helping all Australians own their own home, as it builds new pathways to home ownership, including its support for Government-backed lending schemes and offering savings accounts designed to grow home deposit faster.

The news comes as new research from the bank reveals that 29% of GenZ and millennials and 19% of Gen X would consider taking out a home loan for up to 40 years if it meant lower repayments*.

Rolf Stromsoe, Chief Customer Officer, said:

“For some Australians having lower monthly repayments is the difference between renting and buying their first home.

“This could be their ‘starter home loan’ – exactly what they need to get their foot in the door at the beginnings of their home ownership journey.

“As their needs evolve and their earnings capacity changes, they may refinance any number of times – but this is the loan that can start it all.”

The bank expects that relatively few first-time customers will complete the full term of the loan, and it provides several options to help customers save and pay down their loans early. This includes not charging fees for extra or early repayments in its variable rate loans, and offering an offset home loan.

About the loan

• Available to Australians citizens and permanent residents between 18 and 40 years of age
• A first home buyer (at least one applicant)
• For owner occupier purposes
• For the purchase of a new or existing home, or construction of a new home where it includes refinance or purchase of a land loan.
• Principal and interest or construction interest only repayments.
• A maximum 90% Loan to Value Ratio (LVR) (inclusive of fees).
• Longer term loans could result in higher overall repayments over the life of the loan.

*Great Southern Bank research, Jun 10-16, 2025 of over 2,000 Australians.