Working FIFO as a Fixed Plant Operator often means spending weeks away from family. When it comes time to buy a home, many FIFO workers want to move closer to their loved ones, whether that's parents getting older or wanting the kids to grow up near their grandparents.
Understanding Your Home Loan Options
As a FIFO Fixed Plant Operator, you have access to Home Loan options from banks and lenders across Australia. Your unique income structure doesn't limit your choices - it just means you need the right approach when applying for a home loan.
Most lenders offer two main interest rate types:
• Variable interest rate - fluctuates with market conditions
• Fixed interest rate - locked in for a set period, typically 1-5 years
Some FIFO workers prefer fixed interest rate home loan products for budget certainty, while others choose variable home loan rates for potential interest rate discounts and flexibility.
Calculating Your Borrowing Capacity
Your borrowing capacity depends on several factors that lenders assess during the application process:
• Your FIFO income (including allowances and overtime)
• Current financial situation and expenses
• Existing debts and credit commitments
• The loan amount you're seeking
• Your intended loan to value ratio (LVR)
Lenders typically require recent bank statements and PAYG summaries to verify your FIFO income patterns. The key is showing consistent earning capacity over time.
Managing Upfront Costs
Buying a home involves several upfront costs beyond the property price:
Stamp duty - varies by state and property value
Lenders mortgage insurance (LMI) - required when borrowing over 80% of property value
Legal and inspection fees
Moving and relocation expenses
If you're buying closer to family, factor in any interstate moving costs and temporary accommodation if needed.
Ready to get started?
Book a chat with a Finance & Mortgage Broker at FIFO Home Loans today.
The Application Process for FIFO Workers
The Home Loan application process for FIFO workers involves some specific considerations:
- Gather your documentation - Recent bank statements, PAYG summaries, employment contracts
- Get pre-approved - This gives you confidence when house hunting and shows sellers you're serious
- Property selection - Consider the local property market conditions in your target area
- Formal application - Submit your complete Home Loan application
- Settlement - Complete the purchase process
Home Loan pre-approval is particularly valuable when relocating, as it helps you understand your budget before viewing properties in a new area.
Maximising Your Home Loan Benefits
Once you secure your home loan, consider features that can help you save:
Offset account - Link your everyday banking to reduce interest charges
Extra repayments - Pay down your loan faster when you have surplus FIFO income
Home equity - Build wealth as your property value increases over time
Many FIFO workers use their roster periods strategically - saving during on-site rotations and making extra repayments during time off.
Calculating Home Loan Repayments
When calculating home loan repayments, consider:
• The home loan interest rate offered
• Your chosen loan term (typically 25-30 years)
• Whether you want principal and interest or interest-only payments initially
• Any additional features like offset accounts or redraw facilities
Your mortgage broker can help you compare Home Loan Rates across different lenders to find options that suit your FIFO lifestyle and family goals.
Making the Move Happen
Buying a home closer to family as a FIFO worker is absolutely achievable. The key is working with professionals who understand your unique income structure and can present your application effectively to lenders.
With the right preparation and support, you can access competitive home loan products that help you secure that property near your loved ones. Whether you're looking at a different state or just a few suburbs over, there are Home Loan options designed to work with your FIFO career.
Remember, the property market varies significantly across Australia, so research your target area thoroughly. What you can afford might surprise you, particularly if you're moving from a high-cost area to somewhere more affordable.
Ready to explore your options for buying closer to family? Our team understands the unique challenges FIFO workers face when applying for home loans. We work with lenders across Australia who recognise the value of FIFO income and can offer competitive rates and terms. Call one of our team or book an appointment at a time that works for you.
