Perth First Home Owners Loan
For most people, buying your first home is an exciting and satisfying decision. You are at a place in your life where you are ready to become a home owner and buy your own property.
Whether you are purchasing property by yourself, with a partner, or with friends or family, you will have many considerations along the way. To find out more, contact a mortgage broker in Perth.
Western Australia has experienced rapid growth in the past few years, and Perth has many exciting new housing developments.
We aim to answer some of the questions you may have about purchasing that dream home, and also provide information on all aspects of purchasing a home.
Set out a plan
You need to know where you want to buy and how much you have to spend. Look at your financial situation, set a budget and research the suburbs you are keen on buying into. Would you like to live in the CBD, or near the beach, close to transport, or away from the city in the suburbs? Consider what assistance you may be able to claim, such as the government's
First Home Owners Grant, or any tax breaks you may be entitled to through the purchase of an investment property. There are additional discounts relating to the purchase of a property depending on where you buy. For example, in WA, there is no stamp duty on homes up to $250,000 ($300,000), land up to $150,000 ($200,000).
How much deposit is needed?
The deposit required depends on the type of home loan and the type pf property you intend to purchase. For an
owner occupied property you will typically need 5% of the property's value for the deposit. For investment property's the deposit is often higher, around 10% of the purchase price.
What about no deposit loans?
In today's market there are a range of loans and products to suit all types of borrowers. One type of loan is the no-deposit loan. It works by the lender waiving the traditional 5% deposit, and lending the total purchase price of the house.
This can be a great help to people wanting to purchase a property, but are struggling to save a deposit. It does allow many people get into their own home who may not have been able to afford it otherwise. However, if you wish to take out a no-interest home loan, consider that it can cost you more in the long run as the interest paid will be higher.
Remember that a no deposit loan usually only covers the mortgage, so you will still need to pay for stamp duty, moving costs, solicitor's fees and mortgage insurance.
First Home Deposit Saver Account
This refers to a Government scheme where potential first home buyers use a special 'First Home Saver Account'. Depositing money from your pre-tax earnings enable anyone over the age of 18-years to save faster than with an ordinary savings account. The scheme is particularly beneficial to anyone earning under $34,000 a year as the government will also add to your savings with a 15% contribution.
There are some conditions to scheme, for example you will need to have $1,000 to contribute into the account upfront, and once your account balance reaches $85,000 you can not make any more deposits.
The savings plan is for four years, and you cannot access the funds until then. The funds will be released tax-free when you use the money to buy your first home.
Make it happen.
The best way to get started with your first home is talk with a Mortgage Broker Perth. We can guide you through the First Home Owners' Grant, help you get together the right documentation and find you an affordable loan, all at no cost. Call on 1300 787 665 to buy your first home.
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