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The essential first Home Buyer Loan guide

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Buying your first home may seem scary, but it doesn’t need to be. In this page, we outline all of the ways that we can assist and support you along your journey into homeownership. From securing your first home buyer loan to handing you your keys and beyond, we’ll be with you every step of the way to take the stress out of the process, do the hard work for you, and allow you to sit back and enjoy the ride.

  1. Get in touch with your first home buyer loan guide

As your local first home buyer specialists, we know the ins and outs of all the finance options available to you. Our experts can help:

  • Find the finance that’s right for you

With our expertise and in-depth knowledge of the Western Australia housing market, we understand the challenges you face. Our specialists work closely with a network of trusted lenders and financial institutions, ensuring access to a wide range of first home buyer mortgage options specifically tailored to your unique needs and preferences. 

  • Make sure your repayments are manageable

To ensure your repayments allow you to maintain your desired lifestyle, we conduct a thorough assessment of your financial situation, taking into account your income, expenses, and long-term goals. Our finance specialists work closely with lenders to negotiate favourable interest rates, flexible repayment terms, and suitable loan structures to prevent excessive financial strain and provide peace of mind as you choose your first home buyer home loan option. 

  • Check what grants you’re eligible for

We take the time to listen, understand your financial goals, and analyse your eligibility criteria. Armed with this information, we can identify all the grants, concessions, and subsidies available to first home buyers in Western Australia.

So, why wait? Get in touch with our first home buyer loan specialists to check your eligibility today. 

  1. See what you can afford

Rent standing in the way of your homeownership dream? It doesn’t need to. With our handy rent converter, you can convert your weekly rent payment into a weekly repayment amount and view a whole range of house & land packages that you might be able to afford for the same amount. 

  • Convert weekly rent payments into estimated mortgage repayments
  • See how much you will be paying in rent over the next two years
  • View a range of house & land packages that you may be able to afford
  1. Learn about the First Home Owner Grant

First home buyers sitting on the floor while unpacking and laughing.

Did you know that first home buyers in Western Australia can receive a one-off payment of up to $10,000 from the government to put toward buying your owner-occupied home? 

Here’s a brief rundown of the scheme:

  • One-off payment of $10,000 from the government to put toward an owner-occupied home
  • Can be put toward your deposit, bringing you closer to homeownership
  • Eligibility criteria apply
  1. Learn about the First Home Guarantee

The First Home Guarantee scheme is a program run by the Australian Government. This initiative is designed to help eligible first time home buyers buy a home sooner.

Here’s a brief rundown of the scheme:

  • Helps first home buyers buy with a deposit as low as 5%
  • Removes the need to pay lender’s mortgage insurance (LMI)
  • Uses the government as a guarantor on up to 15% of the loan
  • Eligibility criteria apply
  1. Learn about the Family Home Guarantee

The Family Home Guarantee is a federal government initiative designed to support eligible single legal guardians or eligible single parents who claim at least one dependent. 

Here’s a brief rundown of the scheme:

  • Supports single parents or legal guardians with a dependent
  • Deposit can be as low as 2%
  • Government acts as a guarantor for 18% of the loan
  • Eligibility criteria apply
  1. Learn about the First Home Super Saver scheme

First home buyers putting savings into a piggy bank

The First Home Super Saver scheme allows eligible individuals to use their super fund to save money for a deposit on their first home.

Here’s a brief rundown of the scheme:

  • Allows you to withdraw from your super to put toward a house deposit
  • Maximum $50,000 can be withdrawn through the scheme
  • Eligibility criteria apply
  1. Learn about the Home Buyer Assistance Account

The Home Buyers Assistance Account (HBAA) was created to help cover some of the costs home buyers face when purchasing their first home. 

Here’s a brief rundown of the scheme:

  • Up to $2,000 reimbursed for incidental costs relating to your new home
  • Incidental costs include things like valuation fees, establishment fees, mortgage registration fees, mortgage insurance premiums, conveyancing fees, and lending institution fees that may be required to buy your first home.
  • Eligibility criteria apply
  1. Browse our Renter’s rescue range

Been caught in the rental trap for too long? At last, you can break free with our Renter’s Rescue range. Can’t afford to pay rent and build a home at the same time? We’ve got you covered! That’s right, we’ll cover your rent for you while you build to further assist you along your journey into homeownership. Here’s a brief rundown of our special range:
  • Rent paid while you build
  • 5 home designs to choose from
  • Different designs for different tastes
  • Assistance in breaking free from the rent trap
  1. Learn about Keystart

Keystart has helped more than 118,000 West Australians and families since its inception – and you could be the next one! You can apply for a Keystart loan if you are still struggling to save on a large deposit or are unqualified for a traditional mortgage. Even if it is not your first time buying or building, as long as it will be your primary residence and you do not currently own a property, this initiative could be the key for you to get into a place you can call home.
  • Unique, WA-only home loan solution
  • Only 2% deposit required but has a higher interest rate
  • No lenders mortgage insurance required
  • Easy to satisfy eligibility criteria

FAQs

Mortgage pre approval is an examination of a home buyer’s finances, which requires proof of employment, assets, income tax returns, and a qualifying credit score. It means the lender has checked the buyer’s credit, verified assets, and confirmed employment to approve a specific loan amount. Pre-approval is based on a home loan application and important documentation

The amount of deposit required for a first home buyer home loan in Western Australia varies from 2%-20% depending on the lender and the type of loan. Using the Home Guarantee Scheme, you can buy your first home with a deposit of at least 5% and without paying lenders mortgage insurance (LMI). 

For West Australians, Keystart is a low-deposit, owner occupier home loan option which requires a deposit of only 2%. Learn more here

 

While not mandatory, it is highly recommended that first home buyers in Western Australia obtain a building and pest inspection before purchasing a residential property; particularly if you buy an established home. This can help identify any potential issues with the property and avoid costly repairs in the future.

The FHOG is a government grant of available to eligible first home buyers in Western Australia. In WA, it is a one-off payment of $10,000 to assist with the purchase or construction of a new home, though this varies between states and territories. The grant amount varies depending on the property location and the date of the contract. To learn more about the grant, click here

To qualify for the FHOG in Western Australia, there are a few eligibility criteria. For instance, you must be an Australian citizen or permanent resident, over 18 years of age, and have never owned a residential property in Australia. You must also be purchasing or building a new home, and the property value must be below a certain threshold. 

For more information relating to the criteria and your eligibility, click here

 

Below are the key steps to getting your first home buyer mortgage and getting into your own home:

  • Check your credit score: Your credit score is an important factor in determining your eligibility for a home loan. A good credit score can help you get a better interest rate and loan terms.
  • Determine your budget: Before you start looking for a home, determine how much you can afford to spend. This will help you narrow down your search and avoid overspending.
  • Get pre-approved: Getting pre-approved for a home loan can help you determine how much you can borrow and what your interest rate will be. This can also make you a more attractive buyer to sellers.
  • Research loan options: There are many different types of home loans available, so it’s important to research your options and find the one that best fits your needs.
  • Apply for a home loan: Once you have found a lender and a loan that you are comfortable with, you can apply for the loan. Be prepared to provide documentation of your income, assets, and credit history.
  • Close on the loan: Once your loan is approved, you will need to close on the loan. This involves signing the loan documents and paying any closing costs.
  • Move in: After you have closed on your loan, you can move into your new home!

Remember that there are many resources available to first home buyers, including government grants and schemes, down payment assistance, and education courses. It’s important to do your research and take advantage of these resources to make the home buying process as smooth as possible

In addition to the FHOG, there are other government grants and schemes available to first home buyers in Western Australia, such as the Home Buyers Assistance Account, Keystart Home Loans, Home Guarantee Scheme, and the First Home Loan Deposit Scheme. These programs offer financial assistance and support to eligible first home buyers.

To purchase your first home in Western Australia, you will need to research the property market, obtain pre-approval for a home loan, save for a deposit, and engage the services of a conveyancer or solicitor to guide you through the legal process. You may also be eligible for government grants and schemes to assist with the purchase or construction of your first home.

For assistance and guidance throughout the process, get in touch with our first home buyer specialists today. 

 
 

Lenders mortgage insurance (LMI) is a type of insurance that protects the lender in case the borrower defaults on their home loan. It is typically required for home loans with a deposit of less than 20% of the property value. However, using the Home Guarantee Scheme, you can get into your first home with a deposit of as little as 5% without paying lenders mortgage insurance. 

To avoid paying LMI, you can take advantage of the Home Guarantee Scheme, use a Keystart home loan, save a larger deposit, or consider a guarantor loan, where a family member provides security for the loan.

Stamp duty is a tax on property transactions that is payable by the buyer. The amount of stamp duty varies depending on the property value and location.

Yes, first home buyers in Western Australia are exempt from paying stamp duty up to a certain threshold.

If you are buying vacant land, you are exempt from stamp duty if you pay less than $300,000 for your land. A stamp duty concession is available between $300,000 and $400,000. 

If the home you are buying costs less than $430,000, you will not have to pay stamp duty. A reduced rate is also available between $430,000 and $530,000. 

Under certain conditions, first home buyers in Western Australia may be able to use their superannuation to purchase a home. This is known as the First Home Super Saver Scheme.

The settlement process is the final stage of the home buying process, where the buyer and seller exchange funds and legal ownership of the property is transferred. This process is typically handled by a conveyancer or solicitor. 

Helpful resources

A first home buyer specialist calculating stamp duty for a first home buyer in WA with Australian gold coins piled next to the calculator.

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