Unlocking Your First Home Loan When Your Income Is Too Low

Trent standing in front of a house sold sign after getting somebody their first home loan

How To Get Your First Perth Mortgage

If the banks are saying that your income is too low for your first Perth home loan, then there is a great way around this that not only gets you your property but also lays the foundations for a strong financial future. Discover the tip in our ‘Short Cuts’ video, or read on to learn more about this strategy.

Are you eager to enter the property market but finding that your income isn’t quite enough to secure the loan you need for your dream home? Don’t despair—there’s a strategic approach that could tip the scales in your favour. Consider purchasing your first house as an investment property, leveraging the potential rental income to bolster your financial standing and increase your buying power.

The concept is simple yet powerful: rather than purchasing a home to live in immediately, opt for an investment property that you can rent out while you continue living with family or in a more affordable rental. By doing so, you can utilise the projected rental income from the property to enhance your overall income and improve your loan serviceability.

This approach can make all the difference, particularly if your current income alone doesn’t meet the requirements for the loan amount you desire. The additional rental income adds a crucial boost to your financial profile, potentially bridging the gap between your existing income and the necessary threshold for loan approval.

Moreover, starting your homeownership journey with an investment property offers several distinct advantages. Not only does it provide a practical solution to affordability challenges, but it also sets you on the path towards building wealth through property investment.

By investing in real estate early on, you’re laying the foundation for future financial growth and stability. The rental income generated from your investment property can serve multiple purposes, from supplementing your existing income to covering mortgage repayments and other expenses associated with homeownership.

Furthermore, purchasing an investment property now, with the intention of eventually residing in it yourself, offers flexibility and long-term benefits. You have the option to capitalise on potential capital appreciation while enjoying the tax advantages and wealth-building opportunities afforded by property ownership.

Benefits Of Buying An Investment Property As Your First Property

  • Increased Buying Power: Leverage rental income to boost borrowing capacity.
  • Supplemental Income: Rental revenue aids in meeting loan requirements and covering mortgage payments.
  • Wealth Accumulation: Start building long-term financial stability and potential capital appreciation.
  • Flexibility: Maintain living arrangements while building equity in an investment property.
  • Tax Advantages: Access deductions for mortgage interest and property taxes.
  • Diversification: Spread risk and potentially increase returns with a diverse investment portfolio.
  • Path to Homeownership: Enter the property market sooner with the option to transition to owner-occupancy later.
Benefits of an investment property as your first property

Of course, embarking on this journey requires careful planning and consideration. It’s essential to conduct thorough research, assess your financial situation, and seek expert guidance from a reputable mortgage broker in Perth.

A knowledgeable mortgage broker can help you navigate the complexities of financing an investment property, including evaluating rental income potential, selecting the right loan products, and maximising your borrowing capacity. With their guidance, you can make informed decisions that align with your financial goals and set you on the path towards homeownership success.

In conclusion, purchasing your first home as an investment property offers a strategic solution for overcoming income limitations and realising your homeownership aspirations. By leveraging potential rental income, you can enhance your buying power, accelerate your entry into the property market, and pave the way for long-term financial prosperity. Take the first step towards unlocking your dream home by exploring the benefits of investment property ownership today.

Chat to our Perth mortgage brokers to discuss how you can get your first home sooner.

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Trent Fleskens, Director of Strategic Mortgages Perth
Managing Director
Managing Director
Strategic Mortgages Perth
About the author
Trent is one of Perth’s foremost property authorities, regularly featured across WA media outlets like The West Australian, Triple M Albany and API Magazine. He brings invaluable insights about the Perth property market, steering clients towards optimal mortgage solutions for their circumstances.