First Home Buyer Guide Perth 2026 | Grants & Concessions

First Home Buyer Guide Perth 2026: Grants, Concessions & What You Need to Know

Buying your first home in Perth is one of the most significant financial decisions you’ll make. This comprehensive guide covers everything you need to know about grants, concessions, and the buying process in 2026.

First Home Owner Grant (FHOG) in Western Australia

The First Home Owner Grant is a one-off payment to help first home buyers get into their first property. We find that many clients still confuse this state grant with federal schemes, so clarity is key for 2026.

FHOG Eligibility Requirements

To qualify for the WA First Home Owner Grant, you must:

Be a natural person (not a company or trust)
Be an Australian citizen or permanent resident
Be at least 18 years old
Not have previously owned residential property in Australia
Live in the property as your principal place of residence for at least 6 continuous months within 12 months of settlement

FHOG Amounts and Property Types

The current FHOG in Western Australia provides:

$10,000 for new homes (house and land packages, newly built homes, or substantially renovated properties)
$0 for established homes (the FHOG doesn’t apply to existing properties in WA)

This means if you’re buying an established property, the FHOG won’t apply - but you may still benefit from stamp duty concessions. You must also ensure the value of the home and land does not exceed $750,000 if located south of the 26th parallel (which includes all of the Perth metropolitan area).

Stamp Duty Concessions for First Home Buyers

Stamp duty (transfer duty) is a significant cost when buying property. Fortunately, WA offers concessions for first home buyers.

First Home Owner Rate of Duty

Recent changes effective from March 2025 have significantly increased the price thresholds, allowing more buyers to enter the market duty-free. Our team has seen these new limits save buyers up to $18,000 compared to previous years.

Property Value	Concession
Up to $500,000	100% Exemption (Pay $0 stamp duty)
$500,001 - $700,000	Partial Concession (Duty reduces on a sliding scale)
Above $700,000	Standard duty rates apply

How Much Can You Save?

For a $480,000 property, a first home buyer now pays zero stamp duty, whereas a standard investor would pay approximately $16,700. If you are buying vacant land, the exemption threshold sits at $350,000, with concessions tapering out at $450,000. These savings can be directly added to your deposit or renovation budget.

Smart Financing: Beyond the Big Four

Securing finance is about more than just your interest rate. We often advise clients to look at specific government-backed lending options that can accelerate their timeline.

Keystart and Low Deposit Options

Keystart remains a vital option for WA buyers who have the income to service a loan but struggle with the deposit. Their 2026 limits allow for property purchases up to $800,000 in the metro area with as little as a 2% deposit and no Lenders Mortgage Insurance (LMI). Income limits have also risen, now capping at $148,000 for singles and $218,000 for couples.

The Federal Home Guarantee Scheme

Another powerful tool is the Federal First Home Guarantee. This scheme allows eligible buyers to purchase a home with a 5% deposit without paying LMI, as the government guarantees the remaining 15%. In Perth, the price cap for this scheme is $850,000. Using this scheme can save you between $15,000 and $30,000 in avoided insurance fees.

Step-by-Step Guide to Buying Your First Home

Step 1: Assess Your Financial Position

Before looking at properties:

Calculate your deposit (aim for 20% to avoid Lenders Mortgage Insurance)
Get finance pre-approval from a lender
Understand your borrowing capacity
Factor in all costs: stamp duty, conveyancing, inspections, and moving

Step 2: Research Suburbs and Set Your Brief

Perth offers diverse suburbs at various price points. Consider:

Proximity to work
Public transport access
Future development plans
School catchments (even if you don’t have kids yet)
Lifestyle amenities

Step 3: Start Your Property Search

Options for finding properties:

Online portals (realestate.com.au, domain.com.au)
Attending open homes
Working with a buyers agent for off-market access

Step 4: Conduct Due Diligence

Never skip these crucial checks. We recommend budgeting approximately $660 for a combined structural and timber pest inspection in Perth.

Building and pest inspection - Non-negotiable, even for new builds
Strata report (for units) - Reveals financial health and planned works
Title search - Confirms ownership and identifies easements/covenants
Council checks - Zoning and any development approvals nearby

Step 5: Make an Offer and Negotiate

When you find the right property:

Understand the market value through comparable sales
Make a realistic offer based on data
Include appropriate conditions (finance, inspection)
Be prepared to negotiate

Step 6: Exchange and Settlement

Once your offer is accepted:

Pay the deposit (usually 5-10%)
Satisfy conditions within the specified timeframe
Arrange insurance from exchange
Settlement occurs (usually 30-90 days)
Receive keys to your new home!

Common First Home Buyer Mistakes to Avoid

Based on our experience helping hundreds of first home buyers, here are the most common mistakes:

Not getting pre-approval first - Leads to disappointment when finance falls through
Skipping building inspections - Can result in expensive surprises
Overextending financially - Leave a buffer for unexpected costs
Ignoring strata reports - Hidden levies can blow your budget
Buying emotionally - Stay objective about market value
Not factoring in all costs - Budget for stamp duty, conveyancing, moving, and immediate repairs

Best Suburbs for First Home Buyers in Perth 2026

For buyers with budgets under $600,000, we recommend targeting specific pockets that offer either land value or high-amenity density.

Top Value for Houses (Land Component)

Camillo & Armadale: Median prices range from $570,000 to $600,000 with strong transport links.
Balga: Still offers development potential and proximity to the CBD at an accessible price point.
Medina: Offers large blocks and character homes for roughly $540,000.

Top Lifestyle Choices (Units & Villas)

Maylands: Excellent café culture and river access (Units typically $400k-$550k).
Victoria Park: Inner-city lifestyle at accessible prices for apartments.
Inglewood: While houses here average $1.4M+, older character units can still be found under $600k.
Bayswater/Bedford: Emerging areas with train access.

Getting Professional Help

The first home buying journey is complex. Many first-timers benefit from working with a buyers agent who can:

Navigate grant and concession eligibility
Access off-market properties before competition
Provide objective property assessments
Negotiate professionally on your behalf
Guide you through the entire process

At Buyers Agent Perth, we offer First Home Buyer Services designed specifically for first-timers - no jargon, patient guidance, and expert support at every step.

Ready to Start Your First Home Journey?

If you’re ready to take the first step toward home ownership in Perth, book a free strategy call to discuss your situation. We’ll help you understand your options and create a plan to get into your first home.