Top 10 Ways First Home Buyer Support Can Get You In Sooner

First home buyer support in Australia has expanded significantly, with federal and state programs now covering deposits as low as 5%, stamp duty exemptions and grants that can add tens of thousands to your deposit.

The Australian Government 5% Deposit Scheme removes the need for lenders mortgage insurance when you purchase with a 5% deposit, while Western Australia offers stamp duty relief on homes valued up to $800,000 and a $10,000 grant for new builds. These programs work alongside each other, reducing both your upfront cash requirement and the amount you need to borrow.

The Australian Government 5% Deposit Scheme Removes LMI

The scheme covers the difference between your 5% deposit and the 20% deposit lenders typically require. Housing Australia guarantees that gap, which means lenders mortgage insurance does not apply. In Western Australia, the property price cap is $850,000 for Perth and applicable metropolitan postcodes, and $600,000 for the rest of the state. South Perth falls under the $850,000 cap.

You apply through a participating lender, not directly through Housing Australia. Status Home Loans works with the full panel of participating lenders and can confirm which loan features are available under the scheme, including offset accounts and whether fixed or variable rates apply. No income caps apply under the current scheme rules, and there are no annual place limits.

How Western Australian Stamp Duty Relief Works

From 7 May 2026, eligible first home buyers in Western Australia pay no stamp duty on homes valued up to $600,000, regardless of whether the property is in Perth, the Peel region or elsewhere in the state. A concessional rate applies on homes valued between $600,001 and $800,000, calculated at $16.15 for every $100 or part thereof above $600,000.

Consider a buyer purchasing a property valued at $750,000. The concessional duty calculation applies to the $150,000 above the $600,000 threshold. That works out to roughly $24,000 in duty instead of the standard rate, which would be closer to $27,000. The saving is modest at that price point but becomes more material on properties closer to the $600,000 threshold, where duty is eliminated entirely.

The concession applies to both new and established homes, as long as you meet the eligibility criteria. You must occupy the property as your principal place of residence for at least six continuous months, commencing within 12 months of settlement. The First Home Owner Rate of duty is separate from the First Home Owner Grant, and you can access the duty concession even if your property exceeds the $800,000 grant cap.

Western Australian First Home Owner Grant for New Builds

The grant is $10,000 for eligible buyers purchasing or building a new home. It does not apply to established properties. For homes south of the 26th parallel, which includes all Perth metropolitan areas and South Perth, the property value cap is $800,000. For homes north of the 26th parallel, the cap is $1,000,000.

At least one applicant must be an Australian citizen or permanent resident, and you must occupy the home as your principal place of residence for a continuous period of at least six months commencing within 12 months of completion. The grant is paid at settlement and can be used as part of your deposit or to cover other settlement costs.

When combined with the 5% deposit scheme, the grant reduces the cash you need to bring to settlement. If you are purchasing a new house and land package valued at $750,000 with a 5% deposit, the $10,000 grant covers more than a quarter of the $37,500 deposit required, leaving you to find $27,500 in genuine savings. Settlement costs including conveyancing, building inspections and connection fees would still apply.

What Counts as Genuine Savings

Lenders assess your deposit to confirm it has been saved over time rather than borrowed or given as a one-off payment. Genuine savings are funds held in your name for at least three months in a standard savings account, term deposit or offset account. Some lenders accept shares or managed funds if they have been held for the required period.

Gifts from immediate family members are generally accepted by most lenders, but the amount that can be gifted varies depending on the lender and your overall deposit size. If you are relying on a gifted deposit, the lender will require a signed statutory declaration from the person providing the funds, confirming the money is a gift and does not need to be repaid.

The First Home Super Saver Scheme allows you to make voluntary contributions into your superannuation fund and release up to $50,000 toward your deposit. Concessional contributions are taxed at 15% rather than at your marginal income tax rate, which can accelerate how quickly you build your deposit. You need to obtain a determination from the Australian Taxation Office before signing a purchase contract, and the released amount is added to your taxable income in the year it is withdrawn, although an offset applies to reduce the effective tax rate.

Income and Deposit Requirements Under the 5% Deposit Scheme

No income caps apply under the Australian Government 5% Deposit Scheme, but lenders still assess your income, expenses and existing debt to determine how much you can borrow. Serviceability is calculated using the lender's assessment rate, which is typically higher than the actual interest rate you will pay. This means the amount you can borrow may be lower than the property price cap under the scheme.

In our experience, buyers often assume that because the scheme allows a 5% deposit, they will automatically be approved for a loan up to the price cap. That is not the case. A buyer earning $90,000 a year with minimal expenses and no debt may be able to service a loan of $600,000 to $650,000, depending on the lender. That same buyer would struggle to service a loan of $800,000, even if the property price cap under the scheme permits it.

Your borrowing capacity depends on your income, the number of dependents, existing debts including credit cards and personal loans, and regular living expenses. Reducing discretionary spending, paying down credit card balances and closing unused credit accounts can all improve your serviceability. Status Home Loans can run a borrowing capacity assessment before you start searching for properties, so you know what price range to focus on.

How Pre-Approval Supports Your Property Search

Pre-approval confirms how much a lender is willing to lend you, subject to property valuation and final checks. It is not a formal offer, but it allows you to make an offer on a property with confidence that finance is likely to be approved. Pre-approvals are typically valid for three to six months, depending on the lender.

Having pre-approval in place can make your offer more attractive to vendors, particularly in areas like South Perth where stock is limited and competition can be strong. Real estate agents and vendors are more likely to take your offer seriously if they know you have already been assessed by a lender.

Pre-approval does not lock you into a specific lender or loan product. If a different lender offers more suitable loan features or a lower interest rate by the time you find a property, you can switch before formal application. The pre-approval process involves a credit check, so you should avoid applying with multiple lenders within a short period, as multiple enquiries can affect your credit score.

Fixed or Variable Rates for First Home Buyers

Fixed rates provide certainty over your repayments for a set period, typically one to five years. Variable rates move up or down depending on market conditions and lender pricing decisions. Most lenders allow you to split your loan between fixed and variable portions, which gives you some certainty while retaining flexibility to make extra repayments on the variable portion.

Fixed rates generally do not allow offset accounts or unlimited extra repayments. If you plan to make additional payments to reduce your loan faster, a variable rate or a split loan structure may be more suitable. Variable rate loans typically include offset accounts, which reduce the interest charged on your loan by offsetting your savings balance against the loan balance.

If you are purchasing under the Australian Government 5% Deposit Scheme, the loan features available depend on the participating lender you choose. Not all lenders offer offset accounts or split loan structures under the scheme, so you should confirm the available features before deciding which lender to apply with. For more detail on how these loan structures work, refer to our home loans page.

Combining Help to Buy with State Grants

Help to Buy is a federal shared equity scheme where the Australian Government contributes up to 40% of the purchase price for a new home and up to 30% for an existing home in exchange for a proportional equity stake. You need a minimum 2% deposit. Income limits apply: $100,000 for individuals and $160,000 for joint applicants or single parents. Property price caps vary by location and are lower than the caps under the 5% Deposit Scheme.

Western Australia joined the scheme in early 2026. Help to Buy cannot be combined with the Australian Government 5% Deposit Scheme, but it can generally be used alongside state grants and stamp duty concessions. If you are purchasing a new home valued at $650,000 and the government contributes 40%, your loan would be for $390,000 rather than $617,500 under a 5% deposit structure. The government's equity share increases or decreases in line with the property's value when you sell or buy out the government's share.

The scheme is suitable for buyers who meet the income caps and prefer a smaller loan over outright ownership. It reduces your borrowing requirement and monthly repayments, but you will need to buy out the government's share or sell the property when you no longer occupy it as your principal place of residence. We regularly see this scheme work well for single income buyers or those with dependents where serviceability is tight.

What Happens After You Make an Offer

Once your offer is accepted, you move to formal loan application. The lender will require payslips, tax returns, bank statements, identification and a copy of the signed contract of sale. If you are receiving a gifted deposit or using funds released under the First Home Super Saver Scheme, you will need to provide supporting documentation.

The lender will order a valuation to confirm the property's market value meets or exceeds the purchase price. If the valuation comes in lower than the purchase price, the lender will base the loan amount on the lower figure, and you will need to make up the difference with additional deposit funds. This is uncommon in an active market but can occur if the purchase price is above recent comparable sales.

Settlement typically occurs 30 to 60 days after the contract is signed, depending on the terms negotiated. You should arrange building and pest inspections during the cooling-off period if applicable, and confirm that all conditions in the contract are satisfied before the due date. Your conveyancer or solicitor will handle the legal side of the transaction, including title searches and lodgement of documents.

Call one of our team or book an appointment at a time that works for you. Status Home Loans can guide you through the application process, confirm your eligibility for federal and state programs, and connect you with lenders that offer the loan features that suit your circumstances.

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