Buying your first home in WA - what help is available?

March 11, 2021

As a potential first home buyer, you may be wondering if there is any support to help you get into your home. The good news is, there is! The state and federal government want to help first home buyers - so they have a number of incentives and grants designed to support you.

What incentives are available to first home buyers in WA?

Stamp Duty Concessions

There are some great savings on stamp duty for first home buyers. If you're buying an established home, you are exempt from stamp duty if the property is valued at $430,000 or less (a saving of upto $14,440). And there's discounted stamp duty available if it's valued between $430,001 and $530,000.

Buying vacant land could also see you saving on stamp duty with any purchases up to $300,000 exempt from stamp duty, which there is a discounted rate for any land valued between $300,000 and $400,000. Find out more here.

First Home Loan Deposit Scheme

This is a federal government initiative that could help you get into your first home faster, allowing you to obtain a home loan with just a 5% deposit AND avoid Lenders Mortgage Insurance (LMI). For those eligible first home buyers, the government will guarantee the other 15% with the lender. Find out more here.

First Home Owners Grant

First-home buyers can receive a grant of $10,000 to buy or build a new home for use as their principal place of residence — a home that has been substantially renovated may be considered a new home. Find out more here.

What is a guarantor loan?

Is saving your deposit for a first home feeling like something you will never achieve? A guarantor loan could be your answer. If you're trying to buy a home loan with less than a 20% deposit (and you don't quality for the First Home Loan Deposit Scheme), you will need to pay Lender's Mortgage Insurance - otherwise known as LMI.

Don't be fooled, this is an insurance that covers the lender should you default on your loan. It is not insurance that protects you. A guarantor loan can not only help you get into your first home faster, but also help you avoid paying LMI.

A guarantor is usually a family member or parent, who can provide assets as security for your home loan, typically their home. In this situation, the guarantor would use the equity in their home to add to your 5% deposit. However, it's important that the guarantor understands that this could affect their ability to borrow in the future, and they will be resposible for paying back the loan, should you default.

Download our free e-guide: Understanding guarantor loans

How can I take advantage of low rates?

It is a fantastic time to buy especially with the record low interest rates we have in the market at the moment. Check out our lowest interest rates on the Mortgage Choice panel!

Fixing or partially fixing your interest rate could help you lock in a great rate, no matter what happens in the market! It also gives you a predictable repayment, which could help you budget more easily. I can help you find a great low rate for your first home loan from our panel of over 25 lenders and get a fixed term to lock in that rate.

Why you should use a Mortgage Broker

We do all the research for you
We do all the legwork and paperwork
Our service is no cost to you
Mortgage Choice brokers are paid the same
We support you right through to the settlement of your loan (and beyond!)

Buying your first home is an exciting step, it's also one you want to make sure you get right. Using a Mortgage Broker like myself and my team in Ellenbrook & Midland will give you access to thousands of home loans from over 25 lenders - including all the big banks and specialist lenders.

We also offer our service at no cost to you - as with other mortgage brokers - your chosen bank will pay us a commission after your loan settled. But unlike other brokers, Mortgage Choice brokers are paid the same rate of commission regardless of the home loan you choose from our panel of lenders.

That way, you can rest assured that we are recommending the lender and loan that's right for you - and not the one that pays the biggest commission.

Find out more about buying your first home

Let me help you with your first home and finding out if you're eligible for incentives! Call Danielle, your local Mortgage Broker in Ellenbrook & Midland on 0433 841 593 or click on the Contact Us button at the top of the page.

Buying your first home in Western Australia - what help is available? | Ellenbrook