Prospective West Australian-based first home buyers have been given a reason to celebrate 2017, with the state government increasing the First Home Owners' Grant.
On 1 January 2017, the West Australian state government announced it would no longer offer a $10,000 grant to the first home buyers who build a new home or buy a brand new property. Instead, the government will now offer those first home buyers $15,000.
This newly boosted first home owners' grant is expected to help even more prospective buyers onto the property ladder in 2017.
In a nutshell, the boosted grant will help first home buyers who have been looking at buying a brand new property or building their own home save an extra $5,000.
But the state government's decision to increase the first home owners grant isn't the only good news West-Australian based first home buyers have received in recent weeks.
At the beginning of the year, Keystart Home Loans announced it would increase its ‘maximum income limit' by $20,000.
Established in 1989, Keystart Home Loans provides low-deposit home loans to certain West Australians who are unable to meet the deposit requirements imposed by mainstream lenders.
In the past, to qualify for a Keystart home loan, first time buyers had to be earning under a certain amount. Singles had to be earning $70,000 a year or less. Couples had to have a joint annual income of $95,000 a year or less, while families had to be earning less than $115,000 a year.
However, at the beginning of the year, Keystart increased its income thresholds by $20,000. In other words, singles can now earn up to $90,000 a year and still qualify for a Keystart home loan.
In addition, couples earning up to $115,000 a year and families earning up to $135,000 a year can also qualify for this type of product.
As a result of these changes, many first home buyers may find that they are able to get their foot on the property ladder sooner rather than later – even if they are buying an established property.
With this said, if you are a first home buyers who has been thinking about purchasing property in 2017, it might be worth putting your plans into practice sooner rather than later.
Property prices have fallen over the last 12 months, making West Australian housing more affordable than it has been in a long time.
Furthermore, interest rates continue to sit at historical lows, making the cost of borrowing more affordable. The current market conditions combined with the aforementioned changes make now the perfect time to be a first home buyer.
For more information, contact your local Mortgage Choice broker on 13 77 62 to discuss your financial options.