When to Start Preparing for Your First Home Purchase

Understanding Your Financial Situation

Buying your first home as a FIFO worker in Western Australia requires careful preparation well before you start looking at properties. Your unique employment situation means you'll need to take extra steps to demonstrate your financial stability to lenders.

Start by gathering at least 12 months of bank statements that clearly show your FIFO income pattern. This helps lenders understand your earning capacity and proves your income consistency. Your financial situation will be assessed differently than traditional 9-to-5 workers, so having comprehensive documentation is crucial.

Calculate your borrowing capacity by considering your regular FIFO income, existing debts, and living expenses. Remember that lenders will assess your ability to service the loan amount even during periods when you might not be working.

Exploring First Time Home Buyer Programs

As a first-time buyer, you have access to several government schemes that can significantly reduce your upfront costs:

• First Home Owner Grants (FHOG): Available for new builds and can provide thousands of dollars toward your purchase
• Home Guarantee Scheme: Allows you to buy with as little as 5% deposit while avoiding lenders mortgage insurance (LMI)
• First time home buyer schemes: Various state-based programs offering stamp duty concessions

These first time home buyer programs can make a substantial difference to your initial outlay when buying a home. Research which schemes apply to your situation and the specific property type you're considering.

Building Your Deposit and Managing LVR

Your loan to value ratio (LVR) determines how much you can borrow and whether you'll pay LMI. While traditional buyers might need 20% deposit to avoid LMI, FIFO workers often have access to LMI waivers or no LMI loans due to their higher earning potential.

Even with these benefits, having a larger deposit provides more loan options and potentially lower interest rates. Consider using an offset account once you have your loan to reduce interest payments over time.

Choosing Between Interest Rate Options

When applying for a home loan, you'll need to decide between variable interest rate and fixed interest rate options, or a combination of both. Each has distinct advantages:

Variable rates typically offer:
• Interest rate discounts and ongoing benefits
• Flexibility to make extra payments
• Access to features like offset accounts

Fixed rates provide:
• Certainty over repayment amounts
• Protection against rate rises
• Budgeting confidence during your loan term

Many FIFO workers choose a split loan combining both options to balance stability with flexibility.

Getting Pre-Approved Before House Hunting

Before you start seriously looking at properties, get pre-approved for your first Home Loan. This process involves a thorough assessment of your financial situation and gives you a clear understanding of your budget.

Pre-approval offers several advantages:
• Shows sellers you're a serious buyer
• Speeds up the purchase process when you find the right property
• Helps you focus on properties within your price range
• Gives you confidence when making offers

Getting loan pre-approval as a FIFO worker requires specific documentation, so start this process early.

Understanding the Application Process

The home loan application process for FIFO workers involves additional steps compared to traditional employment. You'll need to provide evidence of your employment contract, roster patterns, and consistent income history.

Work with a broker who understands FIFO employment and has access to banks and lenders nationwide. This ensures you can access Home Loan options from banks and lenders across Australia, not just those familiar with WA's mining industry.

Some lenders offer a streamlined application process for FIFO workers, recognising the unique nature of your employment and income patterns.

Timing Your Purchase with Market Conditions

The property market in Western Australia can be cyclical, often influenced by the mining sector's performance. While you shouldn't try to time the market perfectly, understanding current conditions can help inform your decision.

Consider factors like:
• Current interest rate environment
• Property supply in your target areas
• Your job security and contract length
• Personal readiness and deposit size

Starting your preparation 6-12 months before you plan to buy gives you time to improve your position and take advantage of opportunities as they arise.

Remember, buying your first home is a significant milestone. Taking time to prepare properly sets you up for success and can save you thousands of dollars in the long run. Whether you're looking at buying your first home or considering your first investment property, thorough preparation is key.

Call one of our team or book an appointment at a time that works for you to discuss your specific situation and loan options.