Unravelling the first home buyer jargon
Buying your first home – it’s a really exciting time, but it can also be pretty confusing.
One thing is guaranteed, and that’s the barrage of jargon coming your way. You’ll be met with more acronyms and government speak than ever before.
So, here’s where we break it down into simple terms which actually make sense.
This is the rate of interest a bank or other financial institution charges for lending you money, normally in the form of a home loan.
There are two main types of interest rates to be aware of: variable and fixed. A variable interest rate is one that can move up or down, but, tends to be lower than the fixed rate.
A fixed interest rate is one that will remain the same over an agreed upon period of time. Unlike a variable interest rate loan, where minimum repayments vary according to the interest rate, the repayments for a fixed interest loan will always stay the same over the agreed period.
LMI – Lenders Mortgage Insurance
This is insurance to protect your lender if you have trouble with your repayments in the future.
Lenders Mortgage Insurance (LMI) can be an added expense when you’re buying your home, but, if you have a deposit of 20% or more, you can avoid paying LMI.
Our finance team can help to guide you through this process in greater detail.
This is a tax from the state government on new property purchases.
If you’re a first home buyer in WA and you’re purchasing a new home under $500,000, you may be exempt from this tax. The rules are always changing, so it’s best to see. Visit our page for all the latest information: First Home Buyer
Purchase type:Have you chosen an established home or a new home?
This is the name given to transferring a property from one owner to the next. You’ll need a settlement agent or licensed conveyancer to do this for you. They will also make sure outstanding bills are paid up on a property before you settle.
We know that saving a deposit for your home isn’t easy, with most banks requiring as much as $30,000 in genuine savings. With WA Housing Centre’s no deposit option, this isn’t a problem – we can offer you a home loan that requires absolutely no savings to qualify.
WA Housing Centre has a range of specialists to help you get into a new house and land package quickly and easily and to guide you through the process.