First Home Buyers Loans

Buying your first home can be one of the most thrilling and rewarding investments of your entire life. At the same time, it can also be daunting, confusing and complex.  Sometimes it may be difficult to even know where to start.

To help you navigate your way, BuildingWA.com.au asked Mark Evans, Sales and Marketing Manger of Homebuyers Centre, to answer the five most commonly asked questions for you to consider when buying your first home

The amount you can borrow, commonly known as your borrowing capacity or borrowing power, will depend on a number of factors.  Lenders will take into account your current income, monthly expenditures as well as existing assets and liabilities.

Using this information the lender will determine the maximum amount you will be able to repay each month. They will then calculate the corresponding maximum loan amount. 

First Home Owners Grant (FHOG)

The Federal Government's First Home Owner Grant Scheme (FHOG) provides a one-off payment to all first home buyers, regardless of their income or the price of the property they buy.

The payment under the first home buyers scheme will be doubled from $7,000 to $14,000 and first home buyers who buy newly constructed home will receive an extra $14,000 taking their total grant to $21,000.

To qualify for the scheme you must:

• be an Australian citizen or permanent resident who has never owned property in this country;

• have lived in Australia for at least six months;

• be over 18-years old;

• must occupy the home as their principal place of residence.

In addition to your deposit, you may need to cover fees and charges. Additional costs may include:

• Loan application fees
• Settlement fees
• Lenders mortgage insurance (LMI)
• Building and contents insurances
• Utility connection fees – phone/gas/electricity
• Council rates
• Removalist fees

5.  Am I eligible for any discounts on stamp duty?

Yes, first home buyers in Western Australia are eligible for stamp duty discounts.

First home buyers in Western Australia do not pay stamp duty unless they have paid more than $300,000 for a block of land.   Furthermore, first home buyers in Western Australia do not pay stamp duty for the construction of their new homes, up to the value of $500,000.