Top tips to buy a home closer to family in WA

ADF members posted to Western Australia who want to buy closer to family face a specific challenge. You need a loan that works if you're transferred, offers features that suit deployment schedules, and comes from a lender who understands how Defence income is assessed.

The decision to move closer to family isn't just about finding the right property. It's about choosing home loan features that won't penalise you if circumstances change, and knowing which lenders offer the rate discounts and LMI waivers that make the move financially viable.

Why portability matters when you're buying near family

A portable loan lets you transfer your existing loan to a new property without reapplying or paying discharge fees. If you're buying in Perth to be near parents but expect a posting to Pearce or another base within a few years, portability means you can sell and repurchase without starting the loan process from scratch.

Consider a Navy member who buys in Rockingham to be near extended family while posted to HMAS Stirling. Two years later, a transfer to the East Coast comes through. With a portable loan, they can sell the Rockingham property, purchase in their new location, and retain their existing interest rate and loan terms. Without portability, they'd face discharge costs and a new application with current rates that may be higher.

Most major lenders offer portability, but the conditions vary. Some require the new property to be of similar value or require re-approval if your income has changed. ADF-specific home loan products often include portability as standard, which removes a significant barrier when postings interrupt your plans.

Offset accounts reduce interest while you're deployed

An offset account is a transaction account linked to your home loan. The balance in the offset reduces the amount of interest charged on your loan without affecting your ability to access the funds.

For ADF members who deploy regularly, an offset account makes sense. Deployment allowances, field pay, and other entitlements accumulate while you're away. Parking that income in an offset account reduces your loan interest in real time, while keeping the funds available for emergencies or planned expenses when you return.

In our experience, members who use offset accounts during deployments see meaningful interest savings without locking funds into the loan. If you're buying closer to family in Western Australia and expect periods of higher income during deployment, an offset account gives you flexibility without sacrificing the benefit of reducing your loan balance.

Fixed, variable, or split: matching your loan structure to posting cycles

Your loan structure should reflect how long you expect to stay in the property and whether you value repayment certainty or the ability to make extra repayments.

A fixed rate home loan locks your interest rate for a set period, typically one to five years. This suits members who want repayment certainty during a posting and aren't planning to sell before the fixed term ends. The downside is limited flexibility for extra repayments and potential break costs if you need to sell early.

A variable rate offers full flexibility for extra repayments and often comes with features like offset accounts and redraw. If you're uncertain how long you'll stay in Western Australia or want the ability to pay down your loan faster using deployment income, variable rates give you more control.

A split loan divides your loan between fixed and variable portions. You get partial rate certainty and partial flexibility. This works well when you want predictable repayments but don't want to sacrifice the ability to make lump sum payments during high-income periods.

The right structure depends on your posting timeline, not generic advice. If you're buying in Joondalup to be near family and expect to stay for three years, a three-year fixed rate gives you certainty. If you're unsure, a variable or split rate offers more options.

LMI waivers reduce upfront costs for ADF buyers

Lenders Mortgage Insurance is charged when your deposit is less than 20% of the property value. For ADF members, several lenders waive LMI up to specific loan amounts, which can save thousands of dollars in upfront costs.

No LMI loans for ADF members are available from select lenders who recognise the job security and income stability that comes with Defence employment. These waivers typically apply to loans with a loan to value ratio of up to 90% or 95%, depending on the lender.

If you're buying closer to family in Western Australia and your deposit is below 20%, an LMI waiver can make the purchase viable without delaying to save a larger deposit. This is particularly relevant for members who've been posted frequently and haven't had time to build a deposit in a single location.

Not all lenders offer the same LMI waiver terms. Some cap the waiver at a specific loan amount, others restrict it to owner-occupied properties. Comparing lenders based on LMI policy, not just interest rates, is necessary when you're working with a smaller deposit.

How Defence income is assessed by lenders

Lenders assess your borrowing capacity based on your base salary plus any ongoing allowances. For ADF members, this includes allowances like service allowance, but excludes one-off payments or deployment allowances that aren't guaranteed.

Understanding how your income is assessed changes how much you can borrow. Some lenders include a higher portion of allowances than others, which can increase your borrowing capacity by tens of thousands of dollars. This matters when you're buying in suburbs closer to family where property values may be higher than where you currently rent.

If you're considering a move closer to family in areas like Ellenbrook, Mandurah, or Butler, knowing your borrowing capacity before you start looking prevents disappointment. A broker who works with ADF members regularly can identify which lenders assess your income most favourably.

Pre-approval gives you certainty before making family commitments

Getting loan pre-approval before you commit to a property gives you a clear borrowing limit and shows sellers you're a genuine buyer. For ADF members coordinating a move closer to family, pre-approval removes uncertainty.

Pre-approval involves a lender assessing your income, expenses, and deposit, then confirming how much they'll lend you. This approval is typically valid for three to six months, which gives you time to find the right property without rushing.

If you're relocating to be near family and coordinating settlement around a posting or deployment schedule, pre-approval means you can move quickly when the right property appears. It also means you know whether you can afford suburbs closer to family or need to adjust your search area.

Call one of our team or book an appointment at a time that works for you. We'll assess your situation, compare lenders who offer the features and waivers that suit ADF members in Western Australia, and help you secure a loan that supports your move closer to family.

Frequently Asked Questions