Buying your first home is an exciting milestone, and as a WA Government employee, you have access to unique benefits that can make purchasing an off-the-plan property more affordable. Off-the-plan properties offer first-time buyers the opportunity to secure a home before it's built, often at today's prices for tomorrow's property.
Understanding Off-the-Plan Purchases
When you buy off-the-plan, you're purchasing a property based on architectural plans and specifications before construction is complete. This approach can offer several advantages for first home buyers, particularly when combined with the various first time home buyer schemes available to government employees.
The property market has seen increased interest in off-the-plan purchases, as buyers can secure their dream home while it's still being developed. Your financial situation may benefit from the extended settlement period, giving you time to improve your borrowing capacity or save for additional costs.
First Home Owner Grants and Government Support
As a WA Government employee, you may be eligible for the first home owner grants (FHOG), which can significantly reduce your upfront costs. The Home Guarantee Scheme is another valuable program that allows eligible first-time buyers to purchase with a deposit as low as 5%, without paying lenders mortgage insurance (LMI).
These first time home buyer programs are designed to help public service workers enter the property market sooner. When combined with off-the-plan purchases, you can maximise these benefits while securing a new home.
Calculating Your Loan Amount and Deposit
When applying for a home loan for an off-the-plan purchase, lenders will assess your borrowing capacity based on your current income and expenses. The loan to value ratio (LVR) is particularly important, as it determines whether you'll need to pay LMI.
For off-the-plan purchases, you typically pay:
- 10% deposit on exchange of contracts
- Stamp duty (which may be reduced for first home buyers)
- Balance on settlement (usually 12-24 months later)
This timeline allows you to continue saving and potentially increase your deposit, improving your LVR and reducing your loan amount.
Ready to get started?
Book a chat with a Finance and Mortgage Brokers at Public Home Loans today.
Interest Rate Options and Loan Packages
When you access Home Loan options from banks and lenders across Australia, you'll find various interest rate structures available. Variable interest rate loans offer flexibility, while fixed interest rate options provide certainty for budgeting.
Many lenders offer special packages for government employees, which may include:
- Interest rate discounts
- Reduced fees
- Offset account options
- Professional packages with additional benefits
Having access to banks and lenders nationwide means you can compare options and find the most suitable loan for your circumstances.
The Application Process for Off-the-Plan Purchases
The application process for off-the-plan properties involves several steps. First, get pre-approved to understand your borrowing capacity. You'll need to provide:
- Recent pay slips and employment verification
- Bank statements from recent months
- Details of any existing debts or commitments
- Proof of your deposit savings
The streamlined application process available through mortgage brokers who specialise in public service lending can help ensure all documentation is correct and submitted efficiently.
Investment Loan Options and Future Planning
Some first-time buyers consider whether their off-the-plan purchase might serve as their first investment property if circumstances change. Investment loan options are available, though these typically require higher deposits and have different lending criteria.
If you're considering investment loan application processes, discuss this with your broker early, as it may affect your loan structure and interest rate.
Timing and Settlement Considerations
Off-the-plan purchases offer unique timing advantages. The extended period between contract signing and settlement allows you to:
- Continue building your savings
- Potentially benefit from property value growth
- Arrange your finances without the pressure of immediate settlement
- Take advantage of any new first time home buyer schemes that may become available
This extended timeline can be particularly beneficial for government employees who may receive salary increases or promotions during the construction period.
Making Your Off-the-Plan Purchase Work
To maximise the benefits of buying off-the-plan as a first-time buyer, consider working with a mortgage broker who understands government employee benefits and can access multiple lenders. They can help you understand which combination of grants, schemes, and loan products will work for your situation.
Remember that your first Home Loan sets the foundation for your property ownership journey. Taking time to understand your options and accessing professional guidance can help ensure you make informed decisions about your financial future.
As a WA Government employee, you have access to various support programs and loan options that can make buying your first home more achievable. Off-the-plan purchases, combined with these benefits, can provide an excellent pathway to homeownership.
Call one of our team or book an appointment at a time that works for you to discuss your off-the-plan purchase options and discover which first home buyer benefits you're eligible to access.
