When to Start Planning Your First Home Purchase in WA

Buying your first home as a WA Government employee comes with unique advantages that many people don't realise exist. From specialised loan packages to government schemes designed specifically for public service workers, there are numerous resources available to help you step into homeownership.

Understanding Your Home Loan Options

As a WA Government employee, you can access home loan options from banks and lenders across Australia, often with preferential terms. Many financial institutions recognise the job security that comes with public service employment, which can translate into:

• More favourable interest rate considerations
• Reduced documentation requirements
• Flexible borrowing capacity assessments
• Potential interest rate discounts

When applying for a home loan, lenders will assess your financial situation, including your income stability, expenses, and existing debts. Your employment with the WA Government typically works in your favour during this assessment process.

First Time Home Buyer Programs Available

Several first time home buyer schemes can significantly reduce the financial burden of purchasing your first property:

Home Guarantee Scheme
This federal government initiative allows eligible first-time buyers to purchase a home with as little as a 5% deposit, without paying lenders mortgage insurance (LMI). The government acts as guarantor for up to 15% of the property value.

First Home Owner Grants (FHOG)
WA offers grants for eligible first-time buyers, particularly for new constructions. These grants can provide thousands of dollars towards your deposit or other purchase costs.

Stamp Duty Concessions
WA provides stamp duty reductions or exemptions for first-time buyers within certain property price ranges, potentially saving you thousands of dollars.

Managing Your Loan to Value Ratio (LVR)

Your LVR represents how much you're borrowing compared to the property's value. A lower LVR typically means:

• Better interest rate options
• Avoiding LMI costs
• More loan product choices
• Stronger negotiating position

If you can't avoid LMI entirely, some lenders offer reduced rates for government employees or allow you to capitalise the LMI into your loan amount rather than paying upfront.

Choosing Between Variable and Fixed Interest Rates

When you apply for a home loan, you'll need to decide between variable interest rate and fixed interest rate options, or a combination of both:

Variable Interest Rate Benefits:
• Rate decreases when market rates fall
• More flexibility with repayments
• Access to offset account features
• Ability to make extra repayments without penalties

Fixed Interest Rate Benefits:
• Predictable repayments for budgeting
• Protection against rate rises
• Peace of mind during volatile periods

Many borrowers choose a split loan, combining both variable and fixed portions to balance flexibility with certainty.

Preparing Your Application Process

To streamline your application process, gather these documents early:

• Recent pay slips and employment contract
• Bank statements for all accounts
• Tax returns and group certificates
• Details of any existing debts or commitments
• Savings history demonstrating genuine savings

Having access to banks and lenders nationwide through a mortgage broker means you can compare multiple options without submitting separate applications to each institution.

Getting Pre-Approved for Your First Home Loan

Before you start house hunting, consider getting pre-approved. This process involves a lender assessing your borrowing capacity and providing conditional approval for a specific loan amount. Pre-approval offers several advantages:

• Clear budget parameters for property searching
• Stronger position when making offers
• Faster settlement process once you find a property
• Confidence in the current property market

Additional Features to Consider

When comparing home loans, look beyond just the interest rate. Consider features like:

• Offset account options to reduce interest charges
• Redraw facilities for accessing extra repayments
• No ongoing monthly fees
• Professional package benefits
• Future investment loan options if you plan to build a property portfolio

An offset account can be particularly valuable, as it reduces the interest charged on your home loan while keeping your savings accessible.

Planning for Your Financial Future

Buying a home often opens doors to other financial opportunities. Many WA Government employees eventually consider purchasing their first investment property. Understanding investment loan application requirements and investment loan options early can help you plan your property investment strategy.

Your first home purchase is just the beginning of your property journey. The equity you build in your first home can become the foundation for future property investments or upgrading to a larger family home.

Starting your homeownership journey as a WA Government employee puts you in an advantageous position. With job security, access to specialised loan products, and various government incentives, you have multiple pathways to achieving your property ownership goals. The key is understanding which options align with your financial situation and long-term objectives.

Call one of our team or book an appointment at a time that works for you to discuss your specific circumstances and explore the loan packages available to WA Government employees.