Buying your first home is an exciting milestone, but understanding where to start can sometimes feel like the hardest part.
How much deposit do you need? What government assistance is available? Will you need to pay transfer duty? And how much will a lender let you borrow?
The good news is that several initiatives are available to help eligible first home buyers in Western Australia enter the property market sooner.
Here are some of the key things to understand before you start looking.
How much deposit do first home buyers need in WA?
While a 20% deposit has traditionally been considered the benchmark when buying property, it isn’t always necessary.
Depending on your circumstances, lender and eligibility for government schemes, you may be able to purchase your first home with a considerably smaller deposit.
For example, on a $700,000 property:
- 20% deposit: $140,000
- 10% deposit: $70,000
- 5% deposit: $35,000
For first home buyers trying to save while paying rent and everyday living expenses, that is a significant difference.
Can you buy your first home with a 5% deposit?
The Australian Government 5% Deposit Scheme allows eligible first home buyers to purchase a home with a minimum 5% deposit without paying Lenders Mortgage Insurance (LMI).
The expanded scheme includes:
- No income caps
- No waitlists
- Unlimited places
- Higher property price caps
For eligible buyers in Western Australia, the current property price cap is $850,000 for Perth and $600,000 for other eligible areas.
It is important to understand that the Government does not contribute the remaining 15% of your deposit. Instead, it provides a guarantee to the participating lender for part of your home loan.
You will still need to meet the lender’s normal eligibility, credit assessment and borrowing requirements.
Do first home buyers pay transfer duty in WA?
Changes introduced from 7 May 2026 increased the transfer duty concessions available to eligible WA first home buyers.
For eligible transactions entered into on or after that date:
- No transfer duty is payable on new or established homes valued up to $600,000.
- A concessional rate applies to homes valued between $600,001 and $800,000.
- No transfer duty is payable on vacant land valued up to $450,000.
- A concessional rate applies to vacant land valued between $450,001 and $550,000.
These concessions can make a significant difference to the upfront cost of buying your first home.
Eligibility requirements apply, and the relevant thresholds are based on the date the transaction is entered into.
What is the WA First Home Owner Grant?
Eligible first home buyers purchasing or building a new home may qualify for the WA First Home Owner Grant of up to $10,000.
The grant generally applies to new homes, substantially renovated homes and eligible home-building arrangements. It does not ordinarily apply when purchasing an established home.
Depending on your circumstances, it may be possible to combine the WA grant and duty concessions with the Australian Government 5% Deposit Scheme.
Each program has different eligibility requirements, so understanding which schemes may apply before committing to a property can be valuable.
How much can you borrow for your first home?
Having enough deposit is only one part of the equation.
Your borrowing capacity will depend on factors such as your:
- Income and employment
- Existing loans
- Credit card limits
- HECS or HELP debt
- Living expenses
- Dependants
- Credit history
Different lenders can assess the same applicant differently.
This means the lender offering the lowest advertised interest rate is not necessarily the lender that will provide the borrowing capacity or loan features suited to your circumstances.
Being eligible for the 5% Deposit Scheme also does not automatically mean you will qualify to borrow up to the maximum property price permitted under the scheme.
Should you get home loan pre-approval?
Getting home loan pre-approval before seriously looking at properties can give you a clearer understanding of your potential budget.
It can also help identify opportunities to improve your borrowing position before you make an offer.
For example, reducing a credit card limit, paying out an existing debt or building additional savings could potentially affect your borrowing capacity.
Pre-approval remains conditional and does not guarantee that every property will be acceptable to the lender. However, it can provide a much clearer starting point for your property search.
Ready to buy your first home in WA?
Buying your first home involves more than simply finding the lowest interest rate.
Understanding your borrowing capacity, the government assistance potentially available to you and how different lenders may assess your circumstances can make the process considerably easier.
At FI Collective, we help first home buyers understand their options, assess their borrowing capacity, identify potentially applicable first home buyer initiatives and compare suitable home loan options across our lender panel.
Whether you are ready to buy now or still working out how much you need to save, getting a clear picture of your position is a great place to start.
Ready to find out what may be possible? Speak with the FI Collective team about your first home loan options.
This information is general in nature and does not constitute financial, taxation or legal advice. Government schemes, eligibility requirements, property price caps and lender policies can change. Eligibility remains subject to the applicable scheme and lender requirements. Information current as at September 2026.