Buying land, choosing a home design and figuring out finance may seem a little overwhelming, especially for first home builders. On top of that, you’ll probably get plenty of advice from family and friends about how much deposit you’ll need and how to deal with staged payments during construction – it’s a lot to take in.
The good news is, in WA there’s plenty of support for first-time home builders. There’s the First Home Owner Grant, which applies to building a new home you’ll live in. Then there’s low-deposit options and construction-specific lending for progress payments. A construction-focused broker, like InReach Finance, can line everything up so your loan fits the build from slab to handover.
To help you understand the best way to finance your first home, keep reading.
Where First Home Builders in WA Can Start
If you’re looking at land and a new build, you’re not alone. With the established market so hard to break into, Perth’s first homeowners are looking at building new as the best option to enter the housing market.
There are a range of state initiatives that offer low deposit lending and support when building your first home. It’s worth talking to a construction finance specialist to find out what fits your situation best.
FHOG in Plain English
The First Home Owner Grant is a one-off payment that helps eligible buyers who choose to build (rather than buy) a new home to live in. The WA Department of Treasury and Finance runs it, and there are rules around:
- Who is eligible
- How to apply for the FHOG
- The value of the home
- Residence requirement
- Duty concession
As the property market keeps changing, the State and Federal Government keeps introducing new ways to save money and finance your new home, click here to find out the latest government initiatives.
Low Deposit and No-savings Loans
Saving while renting is tough. That’s why many first home buyers look at low deposit options, including Keystart Home Loans. Keystart is a WA Government initiative designed to help eligible buyers who may not meet typical deposit requirements. It offers loan products with different criteria to the major banks.
When you talk to a specialised construction broker, like InReach Finance, they can explore options like no-savings loans with specialist lenders, plus standard loans that suit staged payments. Their role is to match your budget, land and build contract with a loan structure that aligns with your home’s construction.
Construction Loans, Explained Simply
When you choose to build, you’ll usually opt for a construction loan. Funds are released in stages, and the lender checks progress before each drawdown. During the build you often pay interest only on the amount drawn, then the loan converts to standard repayments when you get the keys.
If you’re looking at house and land, remember you’ll have a land contract and a separate build contract. Your broker will look at valuations, deposits and timing so rent and build costs don’t clash more than needed. Ask your broker to map your cash flow against the slab, frame and lock-up stages.
Your Next Steps to Owning a Home
Check your eligibility for the FHOG first, then line up a quick chat with a construction-focused broker. Your broker will help you work out a realistic budget before you fall in love with a design.
Ready to look at plans and finance together? Talk to the team at Blueprint Homes today. Blueprint Home’s in-house finance team, InReach Finance, are experts in construction finance and will help guide you on the right financial structure for your new build.
