As the Federal Government readies to bring down its October budget, an expansion of the first-home buyer loan scheme could be on the cards, following a rush of demand.
National Housing Finance and Investment Corporation figures show that over 40 per cent of the 10,000 available slots have been filled in less than a month. In comparison, the first 10,000 places were filled over a period of six months, between January and June this year.
Housing Minister Michael Sukkar told The Australian the government is “doing all we can to help Australians get into a home of their own sooner”, calling the scheme “critical in driving first-home buyer confidence” during this economic downturn.
“By delivering our loan guarantees, we are helping Australians cut years off the time it takes to save, as first-time buyers can now purchase a home with a deposit of as little as 5 per cent,” Mr Sukkar said.
“The data shows buyer confidence is being maintained with the recently released tranche of guarantees being eagerly secured.”
REA Group Director of Economic Research, Cameron Kusher, cited the success of the scheme as being partially responsible for the first quarterly fall in rental prices in almost 50 years, by “encouraging purchasing from first home buyers who otherwise may have been renters.”
What is the First Home Owners Grant?
The First Home Owners Grant (FHOG) in Australia is designed to encourage and assist homeownership across the country, and for eligible borrowers, it can be a helpful bridge towards life as a property owner.
Western Australia
In the west, eligible first home buyers can receive a First Home Owner Grant of up to $10,000 for buying or building a new home. Homes south of the 26th parallel (including all of the Perth metropolitan area) can have a total value of up to $750,000, whereas homes located north of the 26th parallel can be valued at up to $1 million.
Eligible first home buyers can also apply for the Home Buyers Assistance Account, which is a grant of up to $2,000 to cover the incidental expenses of purchasing an established or partially built home through a licensed real estate agent in WA. It is available for properties with a purchase price of up to $400,000.
The comparison table below displays some of the variable rate home loans on our database with links to lenders’ websites that are available for first home buyers in Western Australia. Products shown are principal and interest home loans available for a loan amount of $500K with an LVR of 80% of the property value. Please note this table has been sorted by current rate (lowest to highest), followed by provider name (A-Z).
Before committing to a particular home loan product, check upfront with your lender, and read the applicable loan documentation to confirm whether the terms of the loan meet your needs and repayment capacity.
