Finance - Mr Enthusiast

First Home Owners Grant

The First Home Owners Grant (FHOG) is a one-off payment that the State government introduced to help first home builders and buyers buy or build a new residential property. The $10,000 payment contributes to your deposit, it will not be transferred directly to you.

Please note that eligibility criteria applies - read our blog on the FHOG here.

First Home Loan Deposit Scheme

The First Home Loan Deposit Scheme (FHLDS) helps eligible first-time homebuyers by allowing them to purchase a property with as little as a 5% deposit, without needing to pay lenders mortgage insurance (LMI). Under the scheme, the National Housing Finance and Investment Corporation (NHFIC) guarantees part of the home loan from a participating lender. This enables first home buyers to secure their home sooner, with a reduced deposit requirement compared to the usual 20%.

Keystart Home Loans

Keystart offers WA residents an opportunity to access low-deposit home loans with no mortgage insurance. While the industry typically requires a 5% deposit, Keystart allows loans with just 2%, plus no mortgage insurance or account-keeping fees. Residents can also benefit from reduced loan repayments during the construction, easing the financial load for first-time buyers. In order to access a Keystart loan, you must meet certain criteria.

Construction Loans

Construction loans are tailored specifically for homebuilding, unlike regular home loans. Rather than providing the full loan amount upfront, construction loans release funds in stages as the building progresses. These loans also often have a variable interest rate during the construction period, and you only pay interest on the drawn amount. Once construction is complete, the loan converts into a regular home loan, with standard repayment terms.

FINANCE CHECK

Have you always written off the idea of building your own home, dismissing it as a dream beyond your reach? Well, we’re here to tell you that successful first-home builders aren’t geniuses that figured out the secret to success – they’ve simply assessed their situation and made informed choices based on a realistic budget and goals.

Knowing what questions to ask can be tricky, which is why we offer a Free Finance Check designed to help you understand your position and give you a clear view of your options, including:

Potential loan and repayment amounts
Affordable land locations and sizes
A build that aligns with your budget

Take the first step to achieving your goals – book a Free Finance Check now!

Deposit Options

0% Deposit

A bank may grant a loan with a 0% deposit if certain criteria are met. This could include having a family member with substantial equity in their own property willing to act as a guarantor, or using a monetary gift you’ve received to cover your deposit. If someone acts as a guarantor for your loan, you may be able to avoid paying Lenders Mortgage Insurance, which is usually required for deposits under 20%.

2% Deposit

In WA, Keystart offers eligible buyers loans with as little as a 2% deposit, without paying Lenders Mortgage Insurance. This makes it one of the most accessible pathways into homeownership. Nationally, the government’s Family Home Guarantee also supports single parents and guardians with a 2% deposit option, again without the need for Lenders Mortgage Insurance. In both cases, a monetary gift can be used to cover your deposit.

5% Deposit

You may be able to access a loan with a 5% deposit through Keystart or under the national First Home Buyer Guarantee, both of which allow you to avoid paying Lenders Mortgage Insurance. If you don’t qualify for either option, most banks will still consider a 5% deposit loan, though Lenders Mortgage Insurance will generally apply.

20% Deposit

If you have a 20% deposit saved, your bank will generally waive Lenders Mortgage Insurance and may offer you a better interest rate, as you are considered a lower-risk borrower.

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