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Buying your first home can feel like you need a huge deposit before you can even start. In reality, the deposit is only one part of the finance picture.
When people search for first home buyer mortgage broker Perth, they are usually looking for more than a generic explanation. They want to know what the finance process could look like, what might affect their options and what they should do before committing to a property or changing an existing loan.
Start with borrowing capacity, not the property
Your maximum borrowing amount is not necessarily the amount you should spend. A lender will look at income, existing commitments, living expenses, credit limits and the proposed loan structure.
For a first home buyer, this step can prevent a common problem: falling in love with a property before knowing whether the finance works. A broker can assess the scenario across suitable lenders and give you a clearer starting range.
It is also important to allow for purchase costs. Your deposit is only one part of the cash you may need, and the amount required varies with the property, state rules, concessions and scheme eligibility.
What can affect a first home buyer application?
Existing debts such as personal loans, car finance and credit cards can affect borrowing capacity. Even a credit card that is rarely used may be relevant because lenders can assess the available limit.
Employment type also matters. PAYG applicants are generally straightforward to document, while casual, self-employed, contractor and other income types can require different evidence.
The property itself matters as well. A lender still needs to accept the security and the purchase needs to fit its lending policy.
Where a mortgage broker can help
A broker can compare lending options based on your circumstances rather than simply comparing advertised rates. This can be particularly useful when you have a smaller deposit, variable income, existing debts or a specific property strategy.
The process can also include working out a realistic price range, preparing documents, discussing pre-approval and helping you understand what happens once you have found a property.
The goal is to have a finance plan before you make an offer, rather than discovering a problem after you have committed to a purchase.
Pre-approval and making an offer
Pre-approval can give you a clearer indication of your borrowing position before you start negotiating on a property. It is important to understand that pre-approval is not the same as unconditional approval and may have an expiry period or conditions.
Once you find a property, the lender still needs to assess the property and the final application before finance is formally approved.
For that reason, buyers should make sure their contract and finance timing are discussed with their broker and conveyancer before signing.
How LJ Mortgages & Finance can help
At LJ Mortgages & Finance, the starting point is understanding your circumstances and what you are trying to achieve. From there, we can compare lending options across our panel and help you work through the application process.
Whether you are a first home buyer, an existing homeowner looking to refinance, an investor considering your next property or a homeowner reviewing multiple debts, the right starting point is a clear assessment of your position.
If you are ready to understand your options, get in touch with LJ Mortgages & Finance and arrange a conversation about your home loan or finance needs.
Frequently asked questions
How much deposit do I need to buy my first home in Perth?
It depends on the loan and any government scheme or lender criteria that may apply. Eligible buyers may be able to purchase with a smaller deposit, but purchase costs and lending requirements still need to be considered.
Can a first home buyer get a 5% deposit home loan?
Eligible buyers may be able to use the Australian Government’s 5% Deposit Scheme through a participating lender, subject to current eligibility and property requirements.
Should I get pre-approval before looking at homes?
Pre-approval can help you understand your borrowing position before making offers. It is not the same as final unconditional approval.
