First Home Buyer Hub

Buying a home is usually the biggest purchase that most people will make and buying your first home is a big deal for anyone. At Finance 66 we specialise in helping first home buyers through the home buying process and, you'll consult with the business owner based here in Perth. We'll be there to guide you through all the necessary steps from pre-approval to settlement. Listed in the sections below are some of the details that you as a first home buyer may need to understand when taking out a home loan of your own.

An LVR is the loan to valuation ratio i.e. the amount to be borrowed as a percentage of the secured property’s value. For example, if you need to borrow $400,000 on a $500,000 property, the LVR would be 80%. 

Depending on your situation and the type of property to be purchased some lenders will allow borrowings up to 98% of the purchased property’s value. Please speak to us for suitable options.

For current stamp duty rates please go to https://www.wa.gov.au/organisation/department-of-finance/transfer-duty-assessment

To calculate stamp duty on a property purchase please go to https://reiwa.com.au/the-wa-market/resources/calculators/stamp-duty-calculator/

First home owners buying or building a new home may apply for a grant of up to $10,000. First home owners buying an established home are not eligible for the $10,000 grant. For first home buyers who would otherwise qualify for the grant, there is no duty payable on established homes purchases up to $450,000 and a concession up to $600,000.  For details please refer to https://www.finance.wa.gov.au/cms/State_Revenue/FHOG/First_Home_Owner_Grant.aspx 

Lenders' Mortgage Insurance (LMI) is a one-off insurance premium payable by the borrower usually on settlement. If you are unable to repay your home loan this insurance protects the lender against any potential loss. LMI does not protect the borrower and you are still legally responsible for repaying the outstanding loan. The LMI premium is usually added to the loan amount and paid off over the loan term. LMI is usually applied only to borrowings over 80% of the secured property’s value.

You’ll need identification documents such as Driver’s Licence, Passport, Medicare Card etc. You’ll also need to prove your ability to repay the loan. Recent payslips or if self-employed recent tax assessments, current bank statements & credit card and/or existing loan statements may be required. Lender requirements may vary depending on your situation. Finance 66 will guide you. 

Apart from stamp duty, some other costs payable on the purchase of a property may include; mortgage registration fee, transfer fee, house insurance, conveyancing and legal fees, utility connection, building inspection, strata search fees and council and water rates adjustment.