First Home Buyer Guide Western Australia (WA) 2026 - Grants, Schemes & Loans

In Western Australia, the First Home Owner Grant (FHOG) is $10,000. This grant is available to first home buyers purchasing or building a new home in WA. Unlike some other states, WA does not impose a strict property value cap on the FHOG - however, the home must be a new residential property (not established). You must be an Australian citizen or permanent resident, at least 18 years old, and not have previously owned property in Australia. Applications are lodged through your lender at settlement or directly through the WA Office of State Revenue.

First home buyers in Western Australia receive generous transfer duty (stamp duty) exemptions. For homes valued up to $530,000, first home buyers pay no transfer duty at all. For homes between $530,001 and $400,000 above the threshold, a concessional rate applies on a sliding scale. WA's $530,000 full exemption threshold is one of the most generous in Australia. On a $530,000 property, the exemption saves approximately $19,665 compared to a non-first-home buyer. The concession applies to both new and existing homes - you do not need to be buying a new home to access the duty exemption.

Western Australia does not impose a strict property value cap on the First Home Owner Grant in the same way as NSW ($600K) or Victoria ($750K). The $10,000 FHOG is available for new homes without a specific property value threshold, making WA more accessible for buyers of higher-value new builds. However, the home must be a new residential property - established homes are not eligible. This policy makes WA unique among Australian states, as most others have explicit dollar caps that disqualify more expensive new homes.

No, the Western Australian First Home Owner Grant is not available for existing (established) homes. The $10,000 grant applies only to new homes, including newly built houses, off-the-plan apartments, substantially renovated properties, and owner-builder new constructions. However, if you are buying an existing home in WA, you can still access the transfer duty exemption (up to $530,000 fully exempt), Keystart low-deposit loans (2% deposit, no LMI), the First Home Buyer Guarantee (5% deposit, no LMI), Help to Buy (30% government equity for existing homes), and the First Home Super Saver Scheme.

The minimum deposit to buy a first home in Perth depends on which scheme you use. With Keystart - WA's government-backed lender - you need just 2% deposit with no LMI, making it the lowest deposit option available in any state. With the First Home Buyer Guarantee (FHBG), you need 5% - $22,500 on a $450,000 property - with no Lenders Mortgage Insurance. With Help to Buy, you need just 2%. Without any scheme, most lenders require at least 5% but you will pay LMI of approximately $6,000-$16,000 unless you have 20% ($90,000). Perth's significantly lower prices than Sydney and Melbourne make homeownership achievable with relatively modest savings.

Keystart is a Western Australian government-owned lender that provides low-deposit home loans exclusively to WA residents. Keystart requires just a 2% deposit with no Lenders Mortgage Insurance (LMI) - making it the most accessible home loan option in Australia. Income caps apply: $105,000 for singles, $130,000 for couples, and $155,000 for families with dependents. Property price caps vary by location. Keystart also offers SharedStart, a shared equity scheme where you buy 75% of the home initially and can purchase the remaining 25% later. Keystart loans are designed as a stepping stone - once you build sufficient equity, you can refinance to a mainstream lender for a lower rate.

Income caps for first home buyer schemes in Western Australia vary by program. Keystart has caps of $105,000 for singles, $130,000 for couples, and $155,000 for families. The First Home Buyer Guarantee (FHBG) has a cap of $125,000 for singles and $200,000 for couples. Help to Buy has a lower cap of $90,000 for singles and $120,000 for couples. The First Home Owner Grant (FHOG) in WA has no income test - eligibility is based on property type (new only). The First Home Super Saver Scheme (FHSS) also has no income cap. Transfer duty concessions in WA have no income test.

On a $90,000 salary with no other debts, most lenders will approve a first home loan of approximately $480,000-$560,000. Lenders apply APRA's 3% serviceability buffer, testing affordability at around 9.5%. A $30,000 HECS-HELP debt reduces borrowing capacity by approximately $30,000-$45,000. FIFO workers should note that lenders assess overtime and allowances differently - some count only 80% of variable income components. Perth's lower median prices mean $480,000-$560,000 covers a wide range of suburbs, unlike Sydney where similar borrowing power limits you to outer ring suburbs.

The most affordable suburbs for first home buyers in Perth in 2026 include areas in the south-east corridor such as Armadale ($320,000 median unit), Gosnells ($330,000 median unit), and Byford ($340,000 median unit). In the south, Rockingham and Baldivis offer units from $340,000 with coastal proximity. The north-east growth areas of Ellenbrook and The Vines have units from $350,000. Regional centres like Mandurah ($300,000 median unit) and Bunbury ($280,000 median unit) offer the lowest entry points with RFHBG eligibility.

FIFO (fly-in, fly-out) income is common in Western Australia due to the mining sector. Lenders assess FIFO income differently from standard employment. Base salary is counted in full, but overtime, allowances, and bonuses are typically assessed at 80% of the average over the last two years. Some lenders are more FIFO-friendly than others - Keystart and major banks with WA operations generally have the most experience. Living-away-from-home allowances are usually not counted as income. Having a consistent 2-year FIFO history strengthens your application. Keystart specifically caters to WA workers and understands FIFO income structures.

Keystart offers unique advantages: 2% deposit (vs 5% for FHBG), no LMI, and familiarity with WA conditions including FIFO income. However, Keystart rates are typically 0.3-0.5% higher than the best mainstream lenders. For a $450,000 loan, this means approximately $80-$120 more per month. The strategy many WA first home buyers use is to start with Keystart to enter the market with minimal savings, build equity over 2-3 years, then refinance to a mainstream lender at a lower rate once LVR drops below 80%. This avoids both LMI and the need for a large deposit.

Perth remains significantly more affordable than Sydney and Melbourne for first home buyers. Perth's median house price is approximately $650,000 - compared to Sydney's $1,150,000 and Melbourne's $850,000. Perth's median unit price of approximately $420,000 falls well within the transfer duty exemption threshold ($530,000), meaning most FHB unit purchases are duty-free. The mining sector supports strong employment and wages, while Perth's relative affordability has attracted increasing interstate migration. Infrastructure investment including Metronet rail extensions is improving connectivity to affordable growth corridors.