Tips for first homebuyers

Buying your first home can feel like a big financial hurdle, especially when it comes to saving a deposit. For first home buyers in Western Australia, the good news is that with a clear plan and an understanding of the support available, getting into the market may be more achievable than you think.

Saving for your deposit

The first step is understanding how much you need. While a 20% deposit is often ideal (to avoid Lenders Mortgage Insurance), many lenders accept smaller deposits, sometimes as low as 5-10%.

While in today’s property market this can seem like a lot, building consistent savings habits is key to helping you achieve your goal.

Start by setting a clear savings goal and timeframe. Breaking a large deposit target into monthly or weekly amounts makes it more manageable and keeps you accountable. Automating transfers into a dedicated savings account can also help remove the temptation to spend.

Reducing expenses, even temporarily, can make a meaningful difference. Reviewing subscriptions, limiting discretionary spending, and redirecting bonuses or tax refunds into savings can accelerate your progress. Some buyers also consider using a high-interest savings account or offset account to make their money work a little harder.

Another strategy is the “pay yourself first” approach, treating your savings like a non-negotiable bill. Even small, consistent contributions can build momentum over time.

For some, living at home longer or sharing accommodation can significantly boost savings capacity. While not always ideal, short-term sacrifices can help you reach your goal faster.

Government grants and schemes in WA

First home buyers in WA may be eligible for a range of government incentives that can reduce the upfront cost of buying.

The main one is the First Home Owner Grant (FHOG). This is a one-off payment of up to $10,000 for eligible buyers purchasing or building a new home. It’s important to note that the grant generally applies to new or substantially renovated homes, not established properties, and there are property value caps to consider.

In addition to the FHOG, buyers may also benefit from stamp duty concessions through the First Home Owner Rate of Duty. Depending on the property value, this can significantly reduce or even eliminate stamp duty, which is often one of the largest upfront costs.

At a federal level, schemes such as the First Home Guarantee (sometimes referred to as the 5% deposit scheme) can help eligible buyers purchase with a smaller deposit without paying Lenders Mortgage Insurance. There are also shared equity-style programs and initiatives designed to support lower-deposit buyers entering the market.

Need some advice and support along the way?

Saving for a deposit requires discipline, planning, and sometimes a few lifestyle trade-offs, but you don’t have to do it alone. By combining consistent savings habits with the grants and schemes available, many first home buyers in WA are able to enter the market sooner than expected.

If you’re unsure where to start, speaking with a mortgage broker can help you map out a strategy tailored to your situation, and make the journey to your first home feel a lot more achievable.

Call our team today.