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What Is The Minimum Deposit Required To Buy A $450,000 Home In Western Australia?
In this article, I will look at the minimum deposit you need to purchase a $450,000 property in Western Australia, both as a first home buyer, and non first home buyer (buying your second, third home, etc.). We will look at the approx fees and charges too, to give you a guide to how much deposit you need to purchase your first or next home.
We will look at the minimum deposit required, which with most banks or lenders is 5% to 8% of the purchase price, plus the associated fees, like possible transfer stamp duty, a settlement agent and other fees that maybe applicable.
Of course the more deposit you have the better, a fee like mortgage insurance would be cheaper, and generally speaking a minimum of 5% of your deposit, has to be saved over at least 3 months in a bank account (this is called genuine savings). The deposit can also come the sale of shares, sale of a previous home etc.
The fees like mortgage insurance, settlement agent fees, and the balance of shire and water rates are an estimate, as this is just an approximate guide, please contact your mortgage broker if you would like a better estimate of what you need to buy a home before you enter into any contract to purchase a property.
At the moment (in the 2022 / 2023 financial year), the federal government is offering the first home guarantee scheme where an eligible first home buyer maybe able to borrow up to 95% of the property value, and not pay a mortgage insurance fee. There is also the family home guarantee scheme, where an eligible single parent maybe able to borrow up to 98% of the property value, and not pay a mortgage insurance fee too. You don't need to be a first home buyer with the family home guarantee scheme. With these options, the deposit required maybe less, so please contact your mortgage broker to check your eligibility as places are limited.
Please note too, if you are eligible for the first home buyers grant, and you buy a brand new property, or construct your first home, you may also be eligible for the first home owners grant of $10,000, which can be used towards your deposit, reducing the deposit you need to save by $10,000, as shown in the deposit required below.
Ok, lets look at fees, and the minimum deposit you will need to purchase a $450,000 property in Western Australia, which includes the fees, charges and repayments (unless you have a guarantor for your home loan, which you may not need a deposit at all or look at lower deposit lenders like Keystart) -
As An Eligible First Home Buyer -
| Property Purchase Price - | $450,000 |
| Transfer Stamp Duty- | $3,838 ( No stamp duty on a property costing up to $430,000, and slightly discounted up to $530,000) |
| Settlement Agent Fee - | $2,000(Approx) |
| Balance Of Water / Shire Rates - | $2,000 (Approx) |
| Mortgage Registration / Legal Fees - | $452.14(approx) |
| Bank Settlement Fee - | $250 |
| Bank Mortgage Insurance Fee - | $12,118 |
| Total Cost To Purchase - | $470,658.14 (Including The Fees) |
| Bank Loan Needed - |
$427,118.00 (including the Mortgage Fee added to the loan) |
| Approx. Deposit Required | $43,540.14 |
To purchase your first home in Western Australia for $450,000, as an eligible first home buyer you would need a minimum deposit of $43,540.14. Your home loan, including the mortgage insurance fee added to the loan would be $427,118.
Your approx. home loan repayments on a $427,118 home loan over 30 year loan term at various mortgage interest rates –
At 3% - $1,800.75 per month
At 4% - $2,039.13 per month
At 5% - $2,292.86 per month
At 6% - $2,560.79 per month
At 7% - $2,841.63 per month
Buying Your Next Home In Western Australia, If You Have Previously Owned An Owner Occupied Home
If you have already purchased a home, or you are buying an investment property, you may not qualify for the first home owners grant. You may still purchase a home with as little as 5% to 8% deposit, plus the associated fees, and you will still require 5% genuine savings (this can come from the proceeds of a sale of property, savings in the bank, sale of shares). The biggest difference is you will have to have the funds to also pay for the transfer stamp duty.
Also too, please note that if you have equity in your current home, and you are buying another property, you may not need a deposit at all, as the equity in your current home, may be able to be used as deposit to fund your new property. You also may not need a deposit either, when buying your next home, if you have a guarantor for your home loan. If using a guarantor for your home loan, you also may be able to borrow the associated fees, so you may require no deposit at all.
Lets look at how much deposit you will need to purchase a $450,000 property, if you are buying your next home or have already owned an owner occupied property in Western Australia, which includes the fees, charges and repayments -
| Property Purchase Price - | $450,000 |
| Transfer Stamp Duty- | $15,390 |
| Settlement Agent Fee - | $2,000(Approx) |
| Balance Of Water / Shire Rates - | $2,000 (Approx) |
| Mortgage Registration / Legal Fees - | $452.14(approx) |
| Bank Settlement Fee - | $250 |
| Bank Mortgage Insurance Fee - | $12,118 |
| Total Cost To Purchase - | $482,210.14 (Including The Fees) |
| Bank Loan Needed - |
$427,118 (including the Mortgage Fee added to the loan) |
| Approx. Deposit Required | $55,092.14 |
To purchase your next home in Western Australia for $450,000, as a previous owner occupier home owner you would need a minimum deposit of $52,642.14. Your home loan, including the mortgage insurance fee added to the loan would be $427,188.
Your approx. home loan repayments on a $427,118 home loan over 30 year loan term at various mortgage interest rates –
At 3% - $1,800.75 per month
At 4% - $2,039.13 per month
At 5% - $2,292.86 per month
At 6% - $2,560.79 per month
At 7% - $2,841.63 per month
This is an approximate guide of the minimum deposit you will need to purchase a property costing $450,000 in Western Australia. Before you make any decisions, please speak to your mortgage broker to find out the exact cost, and what deposit you may require before purchasing a property.
There maybe more information required depending on your personal circumstances, and If you would like some more information about what is needed to purchase your home, please contact Perth Mortgage Broker Group , or call Troy on 0411 229 602, 7 days a week
