Everything you need to know about buying a townhouse

Working out what you can borrow before you start looking

Your borrowing capacity determines which townhouses are within reach. Lenders assess your income, living expenses, existing debts and credit history to calculate how much they'll lend. This figure sets the upper limit of your budget, and knowing it before you attend inspections saves time and disappointment.

In our experience, buyers who skip this step often fall for properties they can't actually afford. Consider a buyer earning $75,000 annually with a car loan of $350 per month and no other debts. Depending on their regular expenses, they might borrow around $400,000 to $450,000. If they're putting down a 10% deposit, that places their total budget in the $440,000 to $500,000 range. Wellard's established townhouses typically sit within this band, though newer strata developments closer to the train station can push higher.

A mortgage broker can run your borrowing capacity calculation within a day or two. You'll need recent payslips, bank statements and details of any existing credit commitments. Once you have a clear number, you can focus on properties that match both your budget and your deposit.

Low deposit options that suit first home buyers

You don't need a 20% deposit to buy a townhouse in Wellard. The Australian Government 5% Deposit Scheme lets eligible first home buyers purchase with just 5% down, and the government guarantees the difference up to 20% of the property value. No lenders mortgage insurance is payable under this scheme, which removes a cost that would otherwise add several thousand dollars to your upfront expenses.

In Western Australia, the property price cap under the 5% Deposit Scheme is $850,000 for Perth and applicable metropolitan postcodes. Wellard falls within this cap, so most townhouses in the suburb are eligible. Applications go through participating lenders, not directly through Housing Australia, and your broker can confirm which lenders are on the panel and what loan features they offer.

If you have a 10% deposit saved, you can access a wider range of lenders and potentially negotiate better rate discounts. Lenders mortgage insurance will still apply on a 10% deposit loan, but the premium is lower than it would be on a 5% deposit. Either way, low deposit home loans open up ownership sooner than waiting years to save a full 20%.

Stamp duty concessions and grants available in Western Australia

Western Australia offers a first home owner grant of $10,000 for new homes valued up to $800,000 south of the 26th parallel, which includes Wellard. The grant does not apply to established townhouses, only to new builds. If you're buying a newly completed townhouse or arranging a land and build contract for a strata lot, you may be eligible.

The first home owner rate of duty provides a more significant saving. From 7 May 2026, a single statewide threshold applies regardless of location. No duty is payable on homes valued up to $600,000. A concessional rate applies on homes valued between $600,001 and $800,000, calculated at $16.15 for every $100 above $600,000. For a townhouse purchased at $650,000, the duty saving compared to standard rates can be several thousand dollars.

These concessions apply to both new and established homes, so even if you're buying an older townhouse that doesn't qualify for the grant, you still benefit from reduced or eliminated stamp duty. You must occupy the property as your principal place of residence for at least six continuous months commencing within 12 months of settlement. Your broker or conveyancer can confirm your eligibility and calculate the exact saving based on the purchase price.

Fixed or variable rate for your first home loan

Choosing between a fixed rate and a variable rate comes down to certainty versus flexibility. A fixed rate locks in your repayment amount for a set period, typically one to five years. You know exactly what you'll pay each month, which makes budgeting predictable. The trade-off is that you usually give up features like an offset account and face restrictions on extra repayments.

A variable rate moves with the market. If rates fall, your repayments drop. If rates rise, they increase. Variable loans generally come with an offset account, unlimited extra repayments and no break costs if you refinance or sell. For first home buyers who expect their income to grow or who want the option to pay down the loan faster, variable rates offer more control.

Many buyers split their loan, fixing part for stability and keeping part variable for flexibility. As an example, you might fix 60% of a $450,000 loan and leave 40% variable. You get some protection from rate rises while still being able to make extra payments and use an offset account on the variable portion. There's no single answer that works for everyone, but understanding the differences helps you match the loan structure to how you plan to manage your money over the next few years.

What to expect during the home loan application

The home loan application process involves several stages. Pre-approval comes first. You provide your broker with income verification, bank statements, identification and details of the property you want to buy. The lender assesses your financial position and issues conditional approval, usually within a few days. Pre-approval gives you confidence to make an offer and shows sellers you're a serious buyer.

Once your offer is accepted and you've signed the contract, you move to formal approval. The lender orders a property valuation to confirm the townhouse is worth what you're paying. If the valuation comes in at or above the purchase price, and you've met all the lender's conditions, formal approval is issued. Settlement usually occurs four to eight weeks after contracts are signed, depending on what's negotiated with the seller.

You'll need to arrange building and contents insurance before settlement, and your conveyancer or settlement agent will handle the legal transfer of title. First home buyers using the 5% Deposit Scheme or claiming stamp duty concessions need to ensure their application is lodged correctly and on time. Your broker coordinates with the lender, and your settlement agent coordinates with RevenueWA to apply the relevant concessions.

Wellard's townhouse market and what suits first home buyers

Wellard sits roughly 50 kilometres south of Perth's CBD and is part of the City of Kwinana. The suburb has grown significantly over the past decade, supported by the Wellard train station on the Mandurah line, which provides direct access to the city. Established townhouse developments are concentrated around Wellard Village and the streets within walking distance of the station. Newer estates toward the eastern edge of the suburb include a mix of house and land packages and smaller strata lots.

First home buyers are drawn to Wellard for affordability and transport links. Families appreciate proximity to schools including Wellard Primary School and several childcare centres, while young professionals value the commute time to the city or Rockingham employment hubs. The suburb's demographic skews younger than many nearby areas, and townhouses offer a lower-maintenance entry point compared to larger family homes on separate titles.

Property values in Wellard are influenced by the condition and age of the townhouse, strata fees, and distance to the train station. Older two-bedroom townhouses in smaller complexes generally sit at the lower end of the price range, while three-bedroom townhouses in newer developments with modern finishes and lower strata levies attract a premium. Buyers should factor ongoing strata fees into their budget, as these can range from $300 to over $600 per quarter depending on the complex and included services.

Offset accounts and how they reduce interest over time

An offset account is a transaction account linked to your home loan. The balance in the offset account reduces the amount of interest you're charged. If you have a $450,000 loan and $10,000 sitting in a 100% offset account, you only pay interest on $440,000. The more you keep in the offset, the less interest you pay and the faster you reduce your loan balance.

Offset accounts work particularly well if you receive your salary into the account and pay all your bills and expenses from it. Your money sits in the offset for as long as possible each month before being spent, reducing your interest charges daily. Over the life of a loan, this can shorten your repayment term or reduce the total interest paid by a meaningful amount.

Not all loan products offer offset accounts. Fixed rate loans rarely include them, and some budget variable loans charge a higher rate or an annual fee for offset access. When comparing home loan options, check whether the offset is 100% or partial, whether there's a fee, and how many offset accounts you can link to the loan. For buyers who actively manage their finances, an offset is one of the more useful features you can have.

Preparing for settlement and your first months as an owner

Settlement is the legal process where ownership transfers from the seller to you. Your settlement agent coordinates with the seller's representative, the lender and RevenueWA to finalise all payments and lodge the transfer of title. On settlement day, the lender disburses the loan funds, the seller receives payment, and you receive the keys.

Before settlement, arrange building and contents insurance, set up your loan account and offset account if applicable, and confirm your first repayment date with the lender. Most lenders deduct repayments monthly from a nominated account. If your loan includes an offset, setting up your salary to be paid into that account from day one ensures you start saving on interest immediately.

In the first few months, review your strata statements, understand what's covered under your building insurance versus the strata's master policy, and set aside a buffer for any unexpected repairs or levy increases. Townhouse ownership involves shared responsibility for common property, and staying informed about strata decisions helps you avoid surprises. Your broker remains available after settlement if you have questions about your loan or want to discuss refinancing down the track.

If you're ready to move forward or want to talk through your specific situation, call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions