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7 tips and tricks to use when getting into your first home in Bunbury and the Southwest.

Natasha Seymour

Updated: Feb 4

Navigating the Western Australian Property Market as a First Home Buyer


The first time you buy or build a house can be overwhelming as it comes with a large financial commitment which affects all other decisions you make in the future. Getting all your ducks in a row and understanding costs, planning and requirements before you jump in to the West Australian First Home Buyer’s Market will help you manage the journey with more confidence. 

Here are 7 financial tips and tricks that the mortgage brokers at Allen Finance in Bunbury recommend when entering into the market for the first time.


  1. Open a high-interest savings account

    No matter what route you choose to take with your initial deposit - whether it be a government grant, a guarantor loan or your entire life-savings, there will need to be a lump sum available to get you into your first home. That applies to both building and buying an established home.

    You might have a few thousand or tens of thousands saved for your down payment, either way it makes sense to choose a bank account which is going to reward you with a high interest savings account.

    High interest earning bank accounts vary in the rates they offer, but every little bit counts when you’re saving for your first home.

  2. WA’s First Home Owner’s Grant (FHOG)

    In Western Australia, there are several government grants available to first home buyers which can assist you in getting into your first home, the First Home Owner’s Grant is one of them and you may be eligible.


    The grant offers applicants who meet the eligibility criteria $10,000.00 dollars towards their first home buyers who are building their first home. One grant is payable per home, so two people purchasing a house together may only receive one grant.


    This is a considerable contribution to your deposit and can help you get into the market sooner rather than later. Ask your Mortgage Broker at Allen Finance to help you understand if you can apply for the grant. Or, to find out more, visit this link .


  1. WA’s First Home Guarantee

    Another government grant that you may be eligible for when building or buying your first home in Bunbury or the Southwest of Western Australia is the First Home Guarantee.

    This guarantee is available to 35,000 applicants per financial year and offers you the option of a 5% minimum deposit on your home which alleviates much of the financial pressure to have a large amount of savings before getting into your home.


    The other advantage of this guarantee is that it does not require buyers to pay Lenders Mortgage Insurance (LMI). LMI is usually required by all financial lenders and is insurance that protects lenders if a borrower defaults on their home loan. It is typically required when a borrower's deposit is less than 20% of the property's value. Removing this sum from another cost you have to save for is a considerable leg up in the process.


    Individuals and couples are eligible for this grant and there are guidelines and caps on the total amount of the home. Ask your Mortgage Broker at Allen Finance to see if you are a likely candidate or read more here.


  1. Family Guarantor

    A guarantor is someone who uses their own equity to secure your home loan. This person is usually an immediate family member. The equity would just need to be enough to cover that 20% deposit to avoid LMI.  

    This guarantee is legally binding, which means that if you fail to make your repayments for any reason, your guarantor will become responsible for paying your loan and whatever collateral they have used to guarantee your loan may be required to repay the lender.

    Once you have paid off your home loan, your guarantor can be removed from the mortgage conditions and is no longer legally bound to the arrangement. 

    The terms and conditions and legal implications of the guarantor loan are complex and so speaking with an Allen Finance Mortgage Broker on whether this is a good option for you would be best.


  1. Understanding your borrowing capacity

    First home buyers often forget that there is a cap on how much they can  borrow from the bank. It is important to understand your borrowing capacity so that you research home and land options that fit your budget so that you can successfully guarantee a loan from your chosen lender, and so that you don’t overextend yourself with your repayments. 


    You can get a general idea of what you can borrow by using our calculator here. It is important to speak to your mortgage broker to have a deeper understanding of your financial position and borrowing power.



  1. Getting Financial Pre-Approval

    If you are looking to purchase your first home in Bunbury and surrounds in the Southwest of Western Australia rather than build, you stand a better chance of putting in a successful offer when you have pre-approval from a lender.


    Conditional approval or pre-approval gives you the confidence to make an offer for a home and may involve verification of your financial position and other necessary checks by the lender.


    Unconditional approval is granted just before you finalise the purchase of a property and may depend on whether the bank’s valuation of the property aligns with the sale price.

    Western Australia’s property market is competitive and having a solid understanding of what you can offer for a home gives you confidence in choosing the right one for your budget and a higher chance of being successful.


  2. Understanding all of the costs

    Buying or building your first home may seem straightforward in that you need to know how much you have as a deposit, how much you can borrow and how much the home is. 


    However, there are some hidden costs that, if you do not have the right Mortgage Broker representing you and your financial interests, can creep up on you.


    Below is a summary of some costs you may not have been aware of that come with buying or building your first home. There is no need to be overwhelmed though, when you work with Allen Finance, your broker will make sure you are in a financial position to cover these costs when they come up.

    • Stamp-duty

    • Building and pest inspection

    • Mortgage registration fee

    • Conveyancing and legal fees

    • Home and contents insurance


Want to know more? Book in a meeting with Allen Finance, located in Bunbury and servicing the Southwest region of Western Australia.




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Bunbury Office Opening Hours

Monday - Friday | 9 am - 6pm
Saturday & Sunday : Closed
 

52 Forrest Ave, South Bunbury WA 6230

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0481 011 292

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