Home Builder Finder

Finance

Home Builder Finder

Navigating the home loan process doesn’t have to be overwhelming. Our expert finance partner simplifies every step, providing personalised guidance tailored to your financial situation, all at no cost and with no obligation. We help you understand your options and secure the best loan terms available, from pre-approval to finalising your mortgage.

With our streamlined approach and dedicated support, achieving your home ownership dreams has never been easier.

To learn more about how we can assist you, click the headings below.

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First Home Buyers
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Getting Prepared
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Keystart
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Stamp Duty
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LMI

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First Home Buyers

Generally, first home buyers are still climbing the wage ladder and maybe even starting a family, so saving a deposit can be tough. This why the State & Federal Governments have created options to help First Home Buyers entering into the property market. State & Federal Governments have incentives for First home buyers to get into the market. The incentives come in the form of grants, concessions & mortgage backing incentives.

We have listed below grants & incentives available for First Home Buyers, for further clarity check with a mortgage broker to see what Grants & Incentives are available for you.

State Government Incentives

  • A Free $10,000 Grant (FHOG) for constructing a home on vacant land – House & Land Package.
  • All applicants must be a First Home Buyers (cannot have owned property before).
  • If a couple applies for the FHBG Grant, only 1 x $10,000 Grant is given per application.
  • Keystart was an initiative created by the WA State Government – Keystart has no Lenders Mortgage Insurance (LMI) and has only a minimum 2% deposit and the deposit can come from the $10,000 Grant.
  • Up to $650,000 to purchase your house & Land Package
  • Stamp Duty Concessions for First Home Buyers.

Federal Government

  • The First Home Guarantee (FHBG) is a Federal backed loan with no Lenders Mortgage Insurance (LMI).
  • Minimum 5% Genuine savings required.
  • Competitive interest rates from participating Lenders (interest rates available that reflect a 20% deposit)
  • Up to $600,000 to purchase your House & Land Package.
  • Must be First Home Buyer.
  • Available to individuals or any two applicants (couples, siblings or friends)

    Beware places go fast, the total number of places available are 35,000 FY2024-2025.

Family Guarantee for a deposit

If you don’t have a 20% deposit, most lenders require that you pay the cost of lenders mortgage insurance (LMI).

However, a Family Guarantee could help you buy a home using a lower deposit without the cost of LMI. The guarantors will need sufficient available equity in their property to use as security. You will take out a mortgage with the same home loan lender as your Guarantor to qualify.

The Family Guarantee can help

  • Enter the market without needing to save for years, with more financial freedom to choose their ideal home.
  • Reduce the amount of deposit required.
  • No LMI required.

Who can apply?

  • The borrower-must be buying your first residential home that they intend to live in.
  • Must be a Principal & Interest home loan
  • The guarantor-must be a parent, stepparent, de-facto to the parent or former legal guardian.
  • The guarantor will need to have substantial equity available to qualify to give assistance

Getting Ready for a Home Loan

You need to see a loan application as selling yourself to the lenders that you are worthy for a 30-year loan.

You are someone who is:

  • Trustworthy
  • Reliable
  • Good credit history
  • Capable of making the repayments on time

Firstly, its important your financial health is up to scratch by:

  • Reducing any unnecessary living expenses, trimming your expenses will help save more money for a deposit but also increase your borrowing power.
  • Having Pay later schemes open with an available limit will reduce your borrowing power.
  • Reduce credit card limits, even if you owe no money on them your borrowing capacity is reduced.
  • Use an account dedicated solely for saving (banks like to see steady increase in the account, not a fluctuating balance EG: in an everyday account
  • Reduce any unsecured debt, like personal loans.
  • Evidence of consistent income for all applicants, increase your income if possible.
  • Lenders also assess your job status – full-time, part-time, contract or self-employed. Full-time PAYG is the lenders preferred job status.
  • Complete any outstanding tax returns.
  • Having a good credit score, this will show your credit history and any outstanding loans.
  • Get rid of gambling habits which will be seen as unpredictable spend and a risk of debt and ruin.

Tips For Maximising Borrowing Power

  • Reducing any unnecessary living expenses, trimming your expenses will help save more money for a deposit but also increase your borrowing power.
  • Having Pay later schemes open with an available limit will reduce your borrowing power.
  • Reduce credit card limits, even if you owe no money on them your borrowing capacity is reduced.
  • Reduce any unsecured debt, like personal loans.
  • Evidence of consistent income for all applicants, increase your income if possible.
  • Lenders also assess your job status – full-time, part-time, contract or self-employed. Full-time PAYG is the lenders preferred job status.
  • Complete any outstanding tax returns.
  • Having a good credit score, this will show your credit history and any outstanding loans.
  • Get rid of gambling habits which will be seen as unpredictable spend and a risk of debt and ruin.

Keystart

Keystart is an initiative of the WA State Government. The initiative was created to help West Australians who were struggling to save the required deposit, get into their own home.

Keystart are unique in the home loan market, they require only a 2% non-genuine deposit and no Lenders Mortgage Insurance (LMI) required. You can use the First Home Buyers Grant of $10,000 towards your deposit.

Keystart have increased the home loan lend to $730,000 for a house & Land Package. Minimum requirement from most other home loan lenders is a 5% genuine savings deposit and payment of Lenders Mortgage Insurance which generally is more than $10,000.

About Keystart home loans:

  • They are all Variable – Principal & Interest home loans.
  • No Interest Only loans.
  • No Fixed rate home loans.
  • Owner-Occupied home loans only – NO Investment.
  • You can have owned a property before.
  • Not to be used to purchase a second home, you cannot already own a property.
  • Centrelink payments can be used towards qualifying for a home loan.
  • Keystart requires builders to provide turnkey build packages, less stress when you move into your new home.

Keystart have an Income Limit Caps, to be eligible you must not exceed the maximum incomes:

Single: $148,000         Couples & Families: $218,000

Stamp Duty

Stamp duty is a tax levied by the WA state government. Stamp duty is payable for the purchase of land, with or without a dwelling.

If you are a First Home Buyer (FHB) and decide to go for a new build, stamp duty is only payable on the land. If any applicant on the home loan has had property before, you will not be eligible for a stamp duty exemption.

First Home Buyers are exempt from stamp duty on vacant land for values up to $350,000.

Concessions apply on land purchases between $350,001 and $450,000.

EG: If the land value is over $450,000, no concession applies.

Lenders Mortgage Insurance (LMI)

Lenders mortgage insurance (LMI) is a risk fee and a one-off, non-refundable, non-transferable premium, you must pay if you don’t have a 20% deposit for your new home.

The smaller the deposit there’s an increased risk associated with your home loan, and therefore the mortgage insurance premium fee increases in line with your deposit amount and home loan value.

LMI is designed to protect the bank. Your only benefit is that lenders will consider your loan application with a deposit between 5% to 20% of the purchase price.

Basically, Lenders mortgage insurance (LMI) is a risk fee for having a low deposit. The insurance is to protect the lender from you being unable to repay your outstanding home loan when they take procession of the property.

To avoid paying LMI, you may consider:

  • Keystart – State WA
    Minimum 2% Deposit non-genuine savings

  • FHBG – Federal (First 35,000 applicants only)

    For 1st home buyers – Minimum 5% Deposit genuine savings

  • Professional packages

    Eligible professions (healthcare, legal, engineering) where LMI is waived – 5% Deposit genuine savings