Owning your own home is a luxury in itself. The homeowners who always had their own homes may underestimate this luxury. But we, Professionals Wanneroo, Real Estate Agency in Wanneroo, don’t. We understand the longing and deep desire of non-homeowners to have a beautiful home of their own.
This is why we have our Property Management Service in Wanneroo to assist you on your endeavor to find a beautiful home to nestle in. We will help you explore the key home financing options in Perth, Australia to help you make an informed decision and embark on your homeownership journey. So, let’s dig in:
1. Mortgage types:
Perth has a variety of mortgage types to accommodate the different financial situations of people. The common mortgage options include:
- Fixed-rate mortgages– A consistent interest rate throughout the loan term which stability which makes it easier to plan and budget.
- Adjustable-rate mortgages (ARMs)– ARMs involve fixed-rate period followed by adjustments on the basis of market conditions.
- Split rate mortgages– It involves the splitting of mortgage into fixed and variable portions which provides stability and flexibility both.
2. Down Payments:
When buying a new home in Perth, some upfront payment in the form of down payment is to made.
- The down payment is generally 20% of the property’s total value.
- Some flexible options like in the case of qualified buyers are available.
- Qualified buyers need to put down only 5% or 10% of the property value as down payment.
- Higher down payment means better mortgage terms, lower interest rates and avoiding the requirement of lender’s mortgage insurance (LMI).
3. Interest Rates:
The interest rates in Perth are affected by various factors which include:
- The Reserve Bank of Australia’s cash rate
- Market conditions
- Lender policies.
Consulting a mortgage broker or financial advisor can help in understanding the available interest rate options and choosing the one which suits your financial situation. You can choose between fixed or variable interest rates.
- Fixed Interest Rate- It is a consistent interest rate for a specific period which provides stability.
- Variable Interest Rate- It changes according to market fluctuations and is volatile.
4. Government Assisted Programs:
In Perth, various Government assistance programs are available to support the potential homebuyers. The First Home Owner Grant (FHOG) gives financial support to the first-time homebuyers. On the other hand, the Keystart Home Loans program offers option of low deposit home loan to help people access the property market with easy financing option.
Exploring the various home financing options in Perth, Australia means to be aware of the available mortgage types, requisite down payment and the prevailing interest rates. It involves rigorous research and comparison of offers from different lenders, consultation with professionals and the consideration of the various government assistance programs. All this will help in making better decisions.
Always assess your financial situation, set realistic budget and chose the financing option which aligns with your long-term goals. The choice of the right financing options can turn your home owning dream into a reality.