Home Loans Perth

Helping you secure your dream home on Australia’s western coast with a great home loan.

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, updated on August 8th, 2023       

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Wondering how you can manage to finance that Perth property you’ve had your eye on? Finding the right home loan is the next step in your journey towards making your dream a reality. Read more about the top home loans in Perth here.

How do I find the best home loan for me in Perth?

The best way to find the perfect home loan for you is to research and compare the options on offer yourself. You have the best idea of your needs, preferences and budget when entering the home loan application process so, in many ways, you’re the most reliable resource when home loan hunting. Savvy is a great place to start for anyone, as our comparison tools make it easy to assess how lenders rank in the areas you find the most important. Consider areas like the type of lender you’re looking to work with in Perth and have in mind home loan rates that you don’t wish to go above, as well as must-have conditions or features.

It’s always important to bear in mind that thoroughness is the name of the game when it comes to choosing a home loan; there’s no worse feeling than signing up for a long-term financial commitment and finding out you missed out on a great deal because you didn’t dig deep enough. Alternatively, if you’d rather leave the hard work in the hands of an expert, you might consider seeking out a Perth mortgage broker to handle your home loan search. They’ll take your preferences and situation into account when compiling a list of suitable home loans for you for a fee or commission.

What choice of lenders do I have in Perth?

Like just about anywhere else in Australia, you won’t be short on home loan options in Perth. From big banks to small online lenders, you’ll be able to find a financier that suits you.

Banks

Australia’s Big Four (ANZ, Commonwealth Bank, NAB and Westpac) continue to be the most popular banks in the country and provide services across the home loan market. In Perth, local bank BankWest rival the titans of Australian banking when it comes to popularity, so they serve as an alternative closer to home. Generally, big banks like these won’t be offering you the best interest rates or conditions on the market but will excel when it comes to their accessibility (both online and in person) and variety of services.

Credit unions

If you’re looking for options outside of banks, credit unions function in a similar way but do contain distinct differences. The fact that they’re owned by members, rather than shareholders, mean that any profits made are plunged back into the union to facilitate rate drops and bonuses for members. Some of the most popular credit unions operating in Western Australia include Goldfields Money Limited, Collie Miners Credit Union and United Credit Union.

Online lenders

Online lenders will offer borrowers a different experience compared to financial institutions with physical locations. An advantage that online lenders might be able to provide is a more personalised service, catering to your specific needs and shaping your loan to suit you. Interest rates and fees also tend to be lower than those of banks. However, what you may find is that the service or scope of the loans on offer is more limited than larger providers.

How to compare the best home loans in Perth

How to maximise your approval chances for your home loan

Check your credit history

Lenders will look to this first and foremost as an indicator of whether you’re a reliable borrower. Check your credit score before applying and try to increase it as much as you can by doing things like paying off your existing debts, cutting out unnecessary expenses and lowering limits on any credit cards you might have.

Build your savings

If a lender can see that you’re a disciplined and effective saver, it’ll boost their confidence in you that you’re a responsible candidate for a loan. The other bonus is that the more savings you have, the greater the deposit you can put down and, in turn, the less you’ll have to borrow.

Stick to your current job and industry

One of the key areas to stick to is to maintain stable employment and income for a long period prior to applying, generally six to 12 months. Entering a new job will likely bring you back into a probationary period, which lenders won’t like, while uprooting yourself and moving into a different industry altogether will also reduce confidence in your short-term prospects.

Establish a “safety net”

It’ll always help your application if you can show your lender that you’ll have funds to fall back on if all else fails. This typically comes in the form of a buffer, meaning that you’re not exhausting all of your savings when applying for your home loan.

Common questions you might have about home loans in Perth

Which mortgage fees can I avoid in Perth?

Fees for additional repayments, redrawing, early exit and breaking the loan are the most common fees that lenders will be willing to waive. Additional repayment and break fees are most often enforced in fixed rate home loans, so a variable rate loan will most likely help you avoid them. Always check with lenders to find out their policy on these fees.

Can I apply for a low- or no-deposit home loan in Perth?

Yes – some lenders can approve a loan with as high a loan-to-value ratio (LVR) as 95%, meaning you’ll only have to provide a 5% deposit on your property. Alternatively, you can potentially avoid a deposit entirely if you find someone (usually a family member or close friend) to go guarantor on your property, which brings them in as added security for the loan.

Should I be concerned about my new home in Perth flooding?

In coastal areas, maybe – you’ll be able to access local flood maps which can help you gauge the overall risk to the house you’re looking at. Also, you might be able to have a flood search conducted by certain conveyancers who offer the service.

Is a Perth package home loan right for me?

Package home loans can be a great way to add bonuses onto your deal and save money. This type of home loan can bundle discounted interest rates and an offset account, as well as other useful features. The trade-off for these benefits is an annual fee that’ll set you back hundreds of dollars.

Can I get a discount on my home loan if I decide to go with my current bank or credit union?

Yes – you’ll bring a lot of bargaining power to the table if you’ve been a long-time customer of your chosen lender. They’ll want to keep you on as a customer across the board and not lose your business to a competitor, so they’ll usually be willing to negotiate. You don’t have to have been a long-time customer to negotiate a better deal, though; lenders know that they’re in a cutthroat industry and will usually be very keen to accommodate you.

Is Perth a good city to buy investment property?

Potentially – Perth’s median house price had gradually fallen over the course of several years dating back to 2014 but has begun to increase, according to CoreLogic. The Perth housing market held firm throughout the pandemic and is predicted to continue growing, so it could be the right time for you to buy in.

What does “buying property off the plan” mean?

This means that you’re committing to the purchase of a new property which hasn’t been built yet, hence the idea of being sold on the property “off the plan”. 

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