Compare Home loans in WA

Compare Home loans in WA and calculate mortgage repayments - Data last updated on

Compare Home loans in WA

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Home loans in WA

Due to external factors, the WA economy and property market tend to be less robust and productive than the states in southeast Australia. Similar to most states, the population in WA increases near the coast with most of the state’s inhabitants living in the southwest corner - close to the capital Perth - and the northwest corner. To attract buyers and developers, the WA government offer several incentives and grant schemes.   

What is the WA economy and property market like?

The largest state in Australia, Western Australia (WA) relies on the agricultural and mining industries to bolster the state’s economy. These industries are heavily influenced by uncontrollable factors, such as the weather and international economic changes, and can be volatile and unreliable. Its large area of unusable land and susceptibility to extreme weather events also affects the state’s economy. All these factors affect WA’s overall wealth, the property market and rates of home loan applications. In recent years the WA property market has been in a decline with prices reducing below the average levels in other states. 

How will these factors affect me getting a home loan?

WA has less demand for property than other states, such as, NSW and Victoria. Therefore, property prices may be lower than in other states and due to fewer potential buyers it may be easier for you to find and purchase a suitable property. These factors make it easier to successfully obtain a home loan in WA.

Are there any secret costs in getting a home loan in WA?

As the WA property market is governed by both state and council rules and regulations, you may have to pay fees to both the governing bodies. The council fees and rates will vary depending on the council region you are purchasing in and the type of property you are looking to buy. The state government charges taxes on the transfer of the property to your name. The amount you pay for the ‘transfer tax’, formerly ‘stamp duty’ will be determined by the value of your property.   

Does WA offer any incentives for purchasing a property or land?

Like most states in Australia, the WA government offers incentives for first home buyers looking to get into the market. The amount you could receive varies depending on whether you are purchasing a new or established home. Also, to be eligible for the grant there may be a cap on the value of the property with properties above a certain value not being eligible for the grant. The government currently also offers a Home Buyers Assistance Account (HBAA) that provides first time buyers with funds for incidental expenses. However, both this and other schemes are often subject to changes and you should always fully research the laws and regulations before applying for a home loan.   

FAQs

Bad credit home loans can be dangerous if the borrower signs up for a loan they’ll struggle to repay. This might occur if the borrower takes out a mortgage at the limit of their financial capacity, especially if they have some combination of a low income, an insecure job and poor savings habits.

Bad credit home loans can also be dangerous if the borrower buys a home in a stagnant or falling market – because if the home has to be sold, they might be left with ‘negative equity’ (where the home is worth less than the mortgage).

That said, bad credit home loans can work out well if the borrower is able to repay the mortgage – for example, if they borrow conservatively, have a decent income, a secure job and good savings habits. Another good sign is if the borrower buys a property in a market that is likely to rise over the long term.

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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.

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