First Home Buyers and Units: The Ins and Outs

For Western Australian Police officers entering the property market, purchasing a unit can be an excellent pathway to homeownership. Units often represent a more affordable entry point compared to standalone houses, particularly in metropolitan areas where property prices continue to climb.

Understanding the specific considerations when buying your first home as a unit purchase will help you make informed decisions throughout your property journey.

Understanding Your First Home Buyer Eligibility

As a first home buyer in Western Australia, you may qualify for several government incentives designed to assist you into the property market. First home buyer eligibility typically requires that you haven't previously owned property in Australia and intend to occupy the property as your primary residence.

Western Australian Police officers should investigate:

• First home owner grants (FHOG) available for eligible new properties
• First home buyer stamp duty concessions that can save thousands on purchase costs
• The Regional First Home Buyer Guarantee for properties outside metropolitan areas
• The First Home Loan Deposit Scheme that allows you to purchase with as little as a 5% deposit

Home Loan Options for Unit Purchases

When purchasing a unit, your home loan options remain similar to those available for houses, though lenders may have specific criteria for strata properties. Most lenders will assess the building's condition, strata management, and any pending major works before approving your home loan application.

You'll need to choose between:

Fixed Interest Rate: Locks in your interest rate for a set period (typically 1-5 years), providing certainty with your repayments. This protects you from interest rate increases during the fixed period.

Variable Interest Rate: Fluctuates with market conditions and often comes with features like an offset account or redraw facility that can help you save on interest over time.

Split Loan: Combines both fixed and variable portions, offering a balance of security and flexibility.

Western Australian Police officers may also be eligible for interest rate discounts through specific lender programs, making it worthwhile to explore your options thoroughly.

Low Deposit Options for Police Officers

One of the biggest hurdles for first home buyers is saving a substantial deposit. Traditionally, lenders prefer a 20% deposit to avoid Lenders Mortgage Insurance (LMI), but several low deposit options exist:

5% Deposit: Available through the First Home Loan Deposit Scheme, which allows eligible first home buyers to purchase with just a 5% deposit without paying LMI.

10% Deposit: Many lenders accept a 10% deposit, though this typically attracts LMI unless you qualify for an LMI waiver.

Gift Deposit: Some lenders accept gifted funds from family members as part or all of your deposit, though this must be genuinely gifted rather than a loan.

As a Western Australian Police officer, you may have access to no LMI loans or LMI waivers through certain lenders, potentially saving you thousands of dollars.

Special Considerations When Buying a Unit

Purchasing a unit involves additional factors that don't apply to freestanding houses:

1. Strata Fees: Regular contributions covering building insurance, maintenance of common areas, and sinking fund contributions
2. Strata Reports: Review these carefully to identify any planned major works or building issues
3. Building Age and Condition: Lenders may be cautious about older buildings or those with maintenance issues
4. Owner-Occupier Ratio: Some lenders prefer buildings with higher owner-occupier percentages
5. Council Approval: Ensure all building works have proper approval

These factors can affect both your ability to secure finance and the ongoing costs of unit ownership.

Preparing Your First Home Buyer Budget

Creating a realistic first home buyer budget extends beyond the purchase price. Factor in:

• Stamp duty (or reduced amounts with first home buyer stamp duty concessions)
• Building and pest inspections
• Conveyancing fees
• Strata reports
• Ongoing strata levies
• Council rates and water charges
• Building insurance (usually covered by strata)
• Contents insurance

Don't forget to maintain an emergency fund for unexpected expenses, as unit living can occasionally involve special levies for major building repairs.

The First Home Loan Application Process

Applying for a home loan involves several steps:

1. Assessment: Review your financial position and determine your borrowing capacity
2. Pre-approval: Obtain pre-approval to understand your budget before property hunting
3. Property Search: Find a suitable unit within your approved price range
4. Formal Application: Submit your first home loan application with property details
5. Valuation: Lender arranges property valuation
6. Approval: Receive formal loan approval
7. Settlement: Complete the purchase and receive keys

Getting pre-approval strengthens your position when making offers, as sellers know you have finance arranged.

Your First Home Buyer Checklist

Before you apply for a home loan, ensure you have:

• Recent payslips (typically last three months)
• Tax returns (last two years if applicable)
• Bank statements showing savings history
• Identification documents
• Details of any existing debts or commitments
• Proof of rental payment history
• Employment confirmation letter

Western Australian Police officers on probation should discuss their employment status with their broker, as some lenders have specific policies regarding probationary periods.

Additional Schemes and Support

Beyond the standard first home buyer grants, explore:

First Home Super Saver Scheme: Allows you to save money for your deposit inside your superannuation, potentially benefiting from tax advantages.

Help to Buy Scheme: A government equity scheme where the government takes an equity share in your property, reducing the amount you need to borrow.

These programs have specific eligibility requirements and income caps, so review whether they suit your circumstances.

Making Your Unit Purchase a Reality

Purchasing your first unit as a Western Australian Police officer is an achievable goal with proper planning and the right support. Understanding your home loan options, taking advantage of available concessions, and working with specialists who understand police-specific lending benefits can make a significant difference to your outcome.

Blue Loans specialises in helping Western Australian Police navigate the property purchase process, with knowledge of lender policies, available discounts, and low deposit options specifically available to law enforcement professionals.

Call one of our team or book an appointment at a time that works for you to discuss your first home loan and start your journey toward unit ownership.