The Big Break for First Home Buyers in WA: What the New 2025 First Home Guarantee Means for You

Prash Nayar
Sep 23, 2025
3 min read

Buying your first home in Western Australia has never been easy. Between saving for a deposit, covering stamp duty, and watching property prices climb, many first-home buyers have struggled to get into the market. But from 1 October 2025, major changes to the First Home Guarantee Scheme could turn the tide.

If you’re planning on buying your first home in WA, here’s everything you need to know—and how to make sure you don’t miss out.

What’s Changing with the First Home Guarantee in 2025?

The Federal Government has announced the biggest shake-up to the scheme since its launch. From October 1, 2025:

Unlimited places: No more waiting lists or capped allocations. Every eligible first-home buyer can now access the guarantee.
Income caps removed: Whether you earn $60,000 or $160,000, you can still apply. This opens the door for thousands of young professionals and couples in WA who were previously excluded.
Higher property price caps:
- Perth & WA metro: Up to $850,000.
- Regional WA: Up to $600,000.
5% deposit requirement remains: You can buy with just a 5% deposit without needing to pay costly Lenders’ Mortgage Insurance (LMI), which often adds tens of thousands to a loan.

In short, if you’re looking at homes under these new thresholds, you could finally buy much sooner—without waiting years to scrape together a 20% deposit.

First Home Buyers in Perth: What It Means for You

In Perth, the median house price has surged past $750,000 in some suburbs. Under the old caps, many buyers were locked out. With the new $850,000 Perth cap, properties in more desirable suburbs now fall within reach for first-timers.

For example:

An $800,000 home in Morley or Joondanna would now qualify.
A $650,000 townhouse in Canning Vale fits comfortably under the cap.
A $590,000 regional property in Bunbury or Geraldton could be eligible too.

This flexibility gives first-home buyers more choice—not just in location, but in property type.

How WA’s Own Incentives Stack Up

Alongside the federal guarantee, WA offers some of the most generous state-level support in the country:

First Home Owner Grant (FHOG WA): $10,000 towards building or buying a new home.
Stamp duty exemptions and concessions:
- Full exemption up to $500,000.
- Discounted rate for homes up to $700,000 in Perth metro.
- Regional WA concessions extend to $750,000.

This means a Perth first-home buyer purchasing a $650,000 home could save thousands in upfront costs by combining the guarantee, FHOG, and stamp duty relief.

Why It’s a Game-Changer

The numbers tell the story. Let’s say you’re eyeing a $700,000 home in Perth:

Old rules: You’d need a $140,000 deposit to avoid LMI. For most buyers, that’s years of saving.
New rules: Just $35,000 gets you through the door—and you avoid LMI altogether thanks to the guarantee.

Add in a potential stamp duty exemption and the $10,000 FHOG if you’re building new, and suddenly your upfront costs could be slashed by $40,000 or more.

The Catch: What You Still Need to Know

While the scheme sounds like a golden ticket, buyers need to be realistic:

It’s not free money: You’re still taking on a mortgage that must be serviced month after month. Lenders will carefully check your income, spending, and credit history.
Property limits apply: If your dream home is $900,000 in Perth, it won’t qualify.
Extra costs remain: Legal fees, inspections, settlement, moving costs—budget for at least another 5–7% of the purchase price.
Competition could heat up: With more buyers eligible, demand for sub-$850k homes in Perth may rise, adding pressure to already tight markets.

Tips to Get Ahead of the Competition

If you want to take advantage of the First Home Buyers WA 2025 changes, preparation is key:

Check your suburb cap: Use the Housing Australia postcode tool (updated in October) to see which properties are eligible.
Get pre-approval early: This shows sellers you’re serious and ready to move.
Save beyond 5%: Covering fees and having a buffer strengthens your application.
Talk to a mortgage broker: They can match you with participating lenders offering the scheme.
Stack your benefits: Use FHOG + stamp duty exemption + guarantee for maximum savings.

Final Word: A Window of Opportunity

The October 2025 First Home Guarantee expansion could be the lifeline Western Australian buyers have been waiting for. Lower deposits, no income caps, higher price thresholds, and WA’s generous state support all add up to a rare chance to step onto the property ladder.

But with opportunity comes urgency. Competition for properties under $850,000 in Perth is likely to surge. The smartest move? Get pre-approved, know your numbers, and be ready to strike the moment the right home comes up.