Those hoping to get their foot on the property ladder may have felt disheartened by strong increases in property prices last year, but the good news is there are several State Government incentives on offer to help first home buyers get into their own home sooner.
Most first-time buyers know about the First Home Buyers Grant (FHOG), a one-off $10,000 payment for eligible home buyers who buy or build a new residential property.
But you might be surprised to hear that you could also be eligible for the FHOG if you buy a home that has undergone substantial renovations. There are several factors the government considers when determining if a home has been substantially renovated.
To be eligible, the purchased property must be used as your principal place of residence.
You could also be eligible for a grant of up to $2,000 from the First Home Buyers Assistance Account to help with some of the associated costs of buying a home such as mortgage registration, settlement fees, valuation fees and inspection fees.
A more recent incentive is the increase to stamp duty thresholds, which will apply to transactions entered into from 21 March 2025.
The changes mean that a first home buyer purchasing a property for under $500,000 will pay no stamp duty (a saving of up to $18,000). A concessional rate will apply for properties valued up to $700,000 in Perth or up to $750,000 in regional areas.
If you are struggling to save the 20 per cent deposit typically required for a home loan, or you can't get approval for a loan from a traditional lender, you might benefit from speaking to Keystart. This government initiative provides home loans that are ideal for first home buyers. The loans have a lower entry cost, low deposit requirements (as little as 2 per cent) and you won't need to take out lender's mortgage insurance.
The income limit to be eligible for a low deposit loan is $148,000 if you are single, or $218,000 if you are a couple or a family.*
Keystart periodically reviews the property price limits to align with REIWA's annualised median house price data and in December 2024 the limit increased from $650,000 to $730,000.*
If you want to reduce the size of your mortgage to make loan repayments more affordable, Keystart also offer Shared Ownership loans - however the property price limit and income limits are less for these loans.
The Federal Government offers similar low deposit and shared equity initiatives for first home buyers.
Under the Home Guarantee Scheme, eligible home buyers can apply for a loan through a Participating Lender. Housing Australia will provide a guarantee of up to 15 per cent of the value of a home loan under the First Home Guarantee or the Regional First Home Buyer Guarantee; and up to 18 per cent under the Family Home Guarantee. This enables the home buyer to buy a home without paying lenders mortgage insurance.
In March 2025 the Federal Government announced increases to the income and property price caps for the Help to Buy Program. Compared to Keystart, the property price limit in the metro Perth area is higher, but lower for regional WA. Income caps for the Federal Government's scheme are also lower for individual and joint applicants.
A start date for the initiative hasn't been announced.
