It is the question that every person who is thinking about building a new home wants answered…when is a good time to build? There never seems to be a perfect time, and answering that question is not easy. However, after a year or two of conditions in the housing and banking industry not being ideal, the tables have turned and the time is definitely right. The real estate market is on the up, and banks are relaxing when it comes to first home finance. Right now is a great time to start to build in WA.
These Are The Reason’s It’s A Great Time To Build In WA
The year ahead is shaping up to be a good time to get yourself on the property ladder, and one of the main reasons for this is the incentives that are currently being offered by the government:
Government incentives have definitely been the catalyst for more and more people deciding to finally take the plunge, and it is easy to see why. The First Home Loan Scheme which was launched last month is one such incentive, and it has been very popular. It is recommended that you get in early if you would like to take advantage of this incentive as there are limited loans available, and many have already been snapped up. The scheme basically helps out first homebuyers by making 95% loan-to-value mortgages available to those who are eligible, there are of course some requirements. A deposit needs to be paid, and this will be different between lenders. Income limits are set at $125,000 for singles and $200,000 for couples.
Another government initiative that is worth looking into, is Keystart. Keystart has been working with the WA government since 1989, and over that time they have helped over 100,000 people into their own homes. The loans offered by Keystart have significantly lower entry costs than other lenders offer, including no lender’s mortgage insurance and lower deposit requirements. Keystart increased their income limits last year, meaning more people could access their low deposit home loans. Although the increased limits were meant to finish on the 31st December 2019, they have now been extended until June 30th 2020. The government has also approved an increase to Keystart’s borrowing limit, which has boosted our lending capacity to $5.3 billion. The new limits are:
$125,000 for singles
$130,000 for couples
$155,000 for families
With such amazing incentives available, and the real estate market looking great, there is no better time for first home builders to get into your own home. Entering into a home loan is a big financial responsibility to take on, so any help you can receive is worth considering. Do your research, everybody’s circumstances are different and you want to make sure your loan suits you. Talk to your builder, chat to friends and family who have recently built a new home and make sure you understand exactly what you are signing up for. Here at DreamStart Homes we can help by putting you in touch with one of our in-house mortgage brokers who specialise in construction loans for first home buyers. Enquire now to find out more!