5 tips for first home buyers in Western Australia

Buying your first home can be one of the biggest, happiest moments in your life.

It’s also, of course, one of the largest purchases any one person, such as yourself, may ever make.

There’s a lot that goes into buying a property – a lot more than finding the right property, putting a deposit on and everything miraculously failing into place.

So, this makes preparing yourself for the big purchase, a very smart thing you can do.

Want to know 5 tips for first home buyers in Western Australia?

Read more from the Gwelup Real Estate Agency, Thought Leaders Real Estate, to learn more.

1.     Diving into the deposit

Not everyone has the funds in cash to purchase a property outright – in fact, the majority of us will put some money down and pay off the rest later (aka mortgage repayments).

Let’s look into the deposit closer. The more you save and offer as the deposit for your first property, the less money you have to borrow from the bank.

This gives you more leeway when it comes to the extra costs associated with property purchasing. Most sellers will accept between a 5-20% deposit. Remember, the more the better and the sooner you start saving towards one, the faster you might be able to secure the first home of your dreams.

2.   Learn about Lenders Mortgage Insurance (LMI)

Don’t have a 20% deposit at your disposal? Prepare yourself for the possibility of paying Lenders Mortgage Insurance. This is designed to protect the lender if you fail to make your home loan repayments.

Don’t confuse Lenders Mortgage Insurance, designed to protect the lender, with Mortgage Protection Insurance, which is a different type of insurance altogether, designed to protect the borrower – that’s you!

3.   Should you go with a guarantor?

A guarantor is a third party, often a parent or other family member who can act as extra security upon a home loan.

Commonly, the guarantor’s existing home equity on their own property will represent this security. While a guarantor isn’t expected to make any loan repayments, if something was to happen to the borrower, the lender would turn to the guarantor.

As such, it’s not a decision to take lightly.

4.   Assistance for first home buyers of existing properties

Plenty of Western Australians know already of The First Home Owner Grant (FHOG), a one-off payment to entice first home buyers into the market. Unfortunately, it only applies to building a new home or buying a newly built property.

But worry not – the Home Buyers Assistance Account is available to first home buyers of established properties who meet certain criteria. This grant of $2,000 aims to reimburse part of the incidental expenses necessary to buying property.

5.   Seek the help of Perth property professionals

Get in touch with a mortgage broker and trusted Perth real estate agency.

Property is hot at the moment so it’s worth having someone to keep you in mind when new listings pop up that meet your first home needs.

Ready to join the Perth property market?

Thought Leaders Real Estate have some of the best real estate listings in Perth.

Contact our agency today for help finding the perfect property for you.