6 Steps First Home Buyers In Perth Need To Follow

need to budget

02.Work out how much you need to budget over a
fixed amount of time

The best way to work out how much you need for your home loan or mortgage is by budgeting. By
coming up with a budget you eliminate the worry of any extra costs you may have missed or not
planned for, and it will give you a better idea of how much financial flexibility you have.

As a first home buyer, you must plan for any of the above costs stated such as home and contents
insurance, utilities, and legal fees. A budget will allow you to see how much you need to spend and
how much you can afford. This will help you to monitor your spending.

finance program

03.Choose the assisted finance program that
works for you

Keystart Home Loans

What is Keystart?

Keystart Home Loans is an initiative of the West Australian Government to provide low deposit home loan options for homebuyers who may not necessarily meet the eligibility requirements of mainstream lenders. The Keystart initiative aims to make the dream of affordable homeownership a reality for first home buyers.

First Home Owner’s Grant

The First Home Owner’s Grant (FHOG) allows eligible first home buyers to receive a grant toward the purchase of a new home.

Who is entitled?: First home buyers who are buying or building their first new home.

How to qualify: Applicants must be 18 years or over with at least one of the applicant’s being an Australian citizen or permanent resident.

How to apply: Applications can be submitted through a FHOG approved agent or made directly to the Office of State Revenue.

Guarantor Loan

What is a Guarantor Loan?

A Guarantor Loan provides the option of seeking a friend or family member to be your guarantor if a credit provider is not willing to give a loan to you on your own. This loan is also available if you are looking to borrow more than 80% of the purchase price but not wanting to pay for lenders mortgage insurance.

Variable Rate Loans

What are Variable Rate Loans?

One of the most common home loan options is a Variable Rate Loan. Unlike a Fixed-Rate Loan, Variable Rate Loans has a variable interest rate which can fluctuate based on your lender, changes in market interest rates, or the performance and changes of the Reserve Bank of Australia’s cash rates.

Fixed Rate Loans

What are Fixed Rate Loans?

A Fixed Rate Home Loan means that your home loan repayments will be charged at the same interest rate for the length of the fixed rate period. Generally, this period is between 1-5 years of which afterwards the rate will revert back to a variable rate.

Interest Only Loans

What are Interest Only Loans?

A popular choice for property investors looking at negative gearing, Interest Only Loans provides the option of paying for your interest only for a given time. This home loan will have lower repayments in the short term and may provide greater tax reductions. This option can give first home buyers with low incomes the opportunity to own their new home without much cash in their bank account.

Low Doc Loans

What are Low Doc Loans?

Low-Documentation Home Loans are generally good for people who are self-employed or who have difficulty getting the documentation required for a traditional home loan. Traditionally, Low Doc Loans have a higher interest rate than standard variable rate loans.

Line of Credit Loan

What is a Line of Credit Loan?

A Line of Credit Loan, also known as an Equity Loan or a Reverse Mortgage, is one of the most flexible loan options available; allowing borrowers to withdraw funds from the equity in their property when needed. Generally, when it comes to an interest-only loan, there is no set date for the balance to be repaid by.

Non-Conforming Loans

What are Non-Conforming Loans?

Non-Conforming Home Loans are suited to people who have a poor credit history or have inconsistent employment - e.g. those nearing retirement, people who are self-employed - or for those who wish to borrow more than 90%-95% of the property value.

Keystart Home Loans

What is Keystart?

Keystart Home Loans is an initiative of the West Australian Government to provide low deposit home loan options for homebuyers who may not necessarily meet the eligibility requirements of mainstream lenders. The Keystart initiative aims to make the dream of affordable homeownership a reality for first home buyers.

First Home Owner’s Grant

The First Home Owner’s Grant (FHOG) allows eligible first home buyers to receive a grant toward the purchase of a new home.

Who is entitled?: First home buyers who are buying or building their first new home.

How to qualify: Applicants must be 18 years or over with at least one of the applicant’s being an Australian citizen or permanent resident.

How to apply: Applications can be submitted through a FHOG approved agent or made directly to the Office of State Revenue.

Guarantor Loan

What is a Guarantor Loan?

A Guarantor Loan provides the option of seeking a friend or family member to be your guarantor if a credit provider is not willing to give a loan to you on your own. This loan is also available if you are looking to borrow more than 80% of the purchase price but not wanting to pay for lenders mortgage insurance.

Variable Rate Loans

What are Variable Rate Loans?

One of the most common home loan options is a Variable Rate Loan. Unlike a Fixed-Rate Loan, Variable Rate Loans has a variable interest rate which can fluctuate based on your lender, changes in market interest rates, or the performance and changes of the Reserve Bank of Australia’s cash rates.

Fixed Rate Loans

What are Fixed Rate Loans?

A Fixed Rate Home Loan means that your home loan repayments will be charged at the same interest rate for the length of the fixed rate period. Generally, this period is between 1-5 years of which afterwards the rate will revert back to a variable rate.

Interest Only Loans

What are Interest Only Loans?

A popular choice for property investors looking at negative gearing, Interest Only Loans provides the option of paying for your interest only for a given time. This home loan will have lower repayments in the short term and may provide greater tax reductions. This option can give first home buyers with low incomes the opportunity to own their new home without much cash in their bank account.

Low Doc Loans

What are Low Doc Loans?

Low-Documentation Home Loans are generally good for people who are self-employed or who have difficulty getting the documentation required for a traditional home loan. Traditionally, Low Doc Loans have a higher interest rate than standard variable rate loans.

Line of Credit Loan

What is a Line of Credit Loan?

A Line of Credit Loan, also known as an Equity Loan or a Reverse Mortgage, is one of the most flexible loan options available; allowing borrowers to withdraw funds from the equity in their property when needed. Generally, when it comes to an interest-only loan, there is no set date for the balance to be repaid by.

Non-Conforming Loans

What are Non-Conforming Loans?

Non-Conforming Home Loans are suited to people who have a poor credit history or have inconsistent employment - e.g. those nearing retirement, people who are self-employed - or for those who wish to borrow more than 90%-95% of the property value.

Do You Qualify?

costs involved

04.What costs are involved to buy a house?

It’s important to become aware of all the costs involved in buying a property during the
early stages of planning. Costs can vary from state/territory and can be influenced by
your service provider, so it’s good to meet with a broker and discuss these options early
on. Generally, costs of buying a property include:

Stamp Duty

Stamp Duty is a form of tax applied to several transactions, including transfers of property and mortgages. In real estate, the buyer pays stamp duty. The cost is decided by separate state and territory governments, so rates vary. Usually, in WA, stamp duty must be paid within two months of settlement.

What is Lender’s Mortgage Insurance?

Lender’s Mortgage Insurance (LMI) is insurance that lenders take out in order to be able to lend to borrowers who have a smaller deposit. Lenders usually take out this insurance when they are lending more than 80% of the value of the property.

Legal/conveyancing fees

Conveyancing covers the legal and statutory process of transferring real estate ownership from one person to another. Conveyancing fees vary between states, however, the average total estimate in Perth is between $1250 to $1900.

Mortgage or loan application fees

A Home Loan Application Fee is a once-off fee which is paid to the lender for setting up a home loan. Fees and charges can change depending on the selected credit provider, so it’s always wise to check the latest information via your credit providers website or published booklet.

Utility connections in Perth

Unlike most Australian states, the energy market in WA has not been completely deregulated. Depending on where you live, your energy provider will be from either of the two electricity providers - Synergy and Horizon Power. For gas, Western Australians are at liberty to choose between a number of providers, so it’s up to you to compare quotes for the best deal.

Home insurance

Home insurance costs can differ in Australia, and how much you pay for home & contents insurance depends on several factors including your location, size and the value of your property. If you want to save on home insurance, be sure to shop around and compare covers.

stick to a budget

05.How first home buyers can stick to a budget and
track saving progress

4 tips for sticking to your budget

1

Keep a record of every purchase

No matter how sizeable the purchase, writing every expense down in either a notebook or your budget planner will give insight into any expenses that could be cut-down or managed. Make it a daily habit and seek out a quiet time in the evening to sit down and track the day’s expenses. At the end of two weeks have a look back at your daily expenditures and use the information to create an allowance or to tighten the budget.

2

Only buy the essentials

Never deviate from your grocery list, and always make sure to buy only the essentials or bare necessities.Things like Uber Eats can actually hurt your ability to save for a home in the long run. Shop smarter by going to thrift stores for cheaper clothing and homewares or purchase groceries from an affordable grocer such as Aldi.

3

Make affordable swaps

The next time you’re eyeing-off a $100 shirt, think to yourself “Do I really need this?” Where you can, make more savvy swaps by finding a more affordable version online or think about making your own clothes, gifts, or homewares.

4

Use a budgeting app

Most of us live with our phones close to our chests, so take advantage of this easy access by downloading a budgeting app which will allow you to track your spending anytime, anywhere.

4 everyday spending habits that can ruin your budget

1

Eating out

It’s hard to say no to friends or family wanting to dine out during the week or deny ordering your favourite takeaway, but this extra spending can burn a hole in the wallet. Instead of buying lunch, prepare meals for the week on a Sunday evening and bring your own to work. Get creative in the kitchen and recreate favourite dishes at home.

2

Paying for services you don’t really need

If you have a gym membership or a subscription to Netflix that you hardly ever use then perhaps it’s wise to cancel in order to use the money toward your savings. On average, people spend $58 a month on gym memberships. This can be substituted for at-home workouts, going for walks or jogs, hiking in nature or setting up your own at-home gym.

3

Putting everything on credit

To avoid temptation and curb frivolous spending, keep a close eye on your statements and factor in any purchases on your daily budget planner. Learn to budget with a credit card and if possible, lose the card altogether.

4

Using ‘buy now, pay later’ schemes

In theory these options are great for those wanting to purchase something upfront without having to spend anything. However, with a lack of budgeting, these ‘buy now, pay later’ schemes can result in expensive fines or repayments if payment is late or delayed.

The psychology of sticking to a budget

A budget sounds great in theory but for it to work you must hold some accountability. Get into the habit of checking and updating your budget planner daily and learn to resist temptation if opportunities come up that may lead to mindless spending.

In order to make a budget worthwhile, think about your goal. If you hold your goal in your mind, each time you’re tempted to order another coffee or go out for dinner you’re less likely to deviate from your budget.

Make a visualisation board keep focused, note down your successes, and allow some indulgence occasionally. For extra motivation, share your goals with friends and family or on social media to maintain a sense of public accountability that can help motivate you to keep on track.

finance approved

06.Getting your finance approved

Getting your finance approved may sound scary at first, but the team at Gemmill Homes will be with
you every step of the way. Fill out the form below to find out if you qualify, and when we get in touch
we can help you with:

Free credit check

If you’re not sure of your credit rating and quality for finance to obtain your first home, we can run a free credit check for you

Government assisted finance

Obtain an obligation free chat with our in house finance team to see what finance options are available for you

$10,000 first home owner grant

Find out more information abut the WA First Home Owners Grant Owner grant

qualify

Do I Qualify?

Applicant 1

I Currently Have

Applicant 2 (optional)

I Currently Have

success stories

Goodlife by Gemmill Homes Customer
Success Stories

Building was a good, straight forward process

Our New Home Sales consultant was good and thorough, explaining every part of the process so I could understand fully. Prestart was awesome, our Prestart Consultant was so helpful, I really am thankful for her input into my home.This process was really good and quick to build my home, as I am a FIFO worker it seemed really quick to build with being away 2 weeks at a time, there was always a pleasant surprise coming back to see the progress after that time.

Our Prestart Consultant was very knowledgeable

Thanks Craig & the team from Deb & I it was an absolutely fantastic experience to build with Gemmill Homes and we love our new home.

Our home was completed with a high quality finish

We had a fantastic experience during the build and our Site Manager was excellent. Our new home Sales Consultant was excellent and knowledgable too, he made our decision to choose Gemmill easy. We would only use Gemmill if we decided to build again. Our home has been completed with a high quality finish.