Home Loans and Pre-Approvals - where do you start?

That is a question that this homebuyer is wondering for the last two weeks since the announcement was made that the first home buyer grant has been tripled in some cases.

I dont want
1. Pushy mortgage brokers
2. Biased opinions of what's best for me when it's what is best for the mortgage broker
3. Recommendations from a friend who gets a movie voucher for baiting me to their broker
4. Bank that doesn't care about me
5. Asking for advice and in return being tricked into signing on the dotted line.

Is there a mortgage broker out there like that?

WA Government Wants a Smaller Piece of your House

The WA Government has revised the "shared equity" program in which it helps low income earners buy a house during the housing affordability crisis. With interest falling and house prices down 10% from last year, there are new changes to this program to make it harder for people to apply.

Now, the government is only willing to buy 25% of your house, rather than 40%. The maximum price for the house is now $355,000 and single people seeking to access the scheme must now earn less than $50,000 a year to be eligible. The threshold for couples has been capped at $60,000 and at $70,000 for families.

So this scheme doesn't help this homebuyer.. anyone out there benefitting?

$426,000 is your average Perth Home now..

Nine months later... the Perth housing market has dropped 10% since December last year. The average house is now only $426k. Properties greater than $500k dropped 3% in the last quarter and it looks like the bleeding continues for the WA housing market.

Some factors that may show a change in fortunes in this current quarter:

• Increased first home buyer grants by the Federal government yesterday. $14k for those looking for an existing home and $21k kickstart for those buying a new place.
  
• No stamp duty for first home buyers up to $500k house in WA
• Drop in RBA interest rate by 1% only one week ago.
• Continuing healthy WA jobs market

These factors may affect the demand for housing in the coming month. If you have come across this blog in your search for a home in Perth, leave a comment. Whether you are a first homebuyer or UK tourist, or a Singaporean taking advantage of our low dollar... we'd like to hear from you.

$21,000 Incentive not good enough for First Home buyer Grant

The Rudd government has offered an extra $7000 for first homebuyers buying an established home and an extra $14,000 for those interested in buying a new home. Some articles have already slammed this idea as being inflationary to the housing industry, creating a bubble that will burst on the 30th of June 2009.

For a first home buyer in the Perth market, it will be interesting to see how the market reacts to this incentive. This weekend, either people will be rushing out to buy a house or maybe there will be no real effect. Personally, I am considering talking to a home loan broker or asking about a mortgage - not sure where to start. Perhaps a smart home loan broker will advertise on Facebook sometime soon... i would.