The First Home Guarantee Scheme, explained for WA buyers
The First Home Guarantee Scheme is designed to help more first home buyers enter the property market sooner. We can help you understand how it applies to your budget, your borrowing options and your pathway into your first home.
What the scheme gives you
The First Home Guarantee Scheme allows eligible WA first home buyers to buy a home with just a 5% deposit, with no income limit. Lenders Mortgage Insurance also isn’t required under the scheme, saving thousands in upfront costs.
| First Home Guarantee, in WA | |
|---|---|
| Deposit required | 5% |
| Income limit | No income limit |
| Lenders Mortgage Insurance | Not required under the scheme |
| WA property price cap | $850,000 |
| Places available | Unlimited, from 1 October 2025 |
Before you rely on a number
These figures change. Confirm current eligibility, income limits and property price caps with Housing Australia before you rely on them, or ask us and we will check it with you.
What is Lenders Mortgage Insurance, and why is it a big deal?
Lenders mortgage insurance (LMI) is a policy homebuyers have to take out if their deposit is less than 20% of the property’s value, meaning a loan-to-value ratio (LVR) of more than 80%.
Although it’s the borrower who pays the premium, LMI actually protects the lender. It’s of zero financial benefit to the borrower and can run into the thousands, so not having to pay it is a big saving.
What is the Family Home Guarantee?
The Family Home Guarantee (FHG) is part of the Home Guarantee and is aimed at helping eligible single parents or single legal guardians with dependent children buy a home sooner.
Like the broader Home Guarantee, the FHG means you don’t need to pay for LMI. But it allows applicants to buy a house with a deposit as low as two percent of the property’s value. The FHG is available to people who have previously owned a home, provided taxable income is $125,000 or lower and they plan to live in the property they buy.
Eligibility checklist
Eligible first home buyers need to have the following status:
- First home buyer (or returning to the market after ten years with no property to your name)
- Australian citizen or Permanent Resident
- 18 or over
- Planning to live in the home as an owner occupier
- Property, house and land package or vacant land with a value of up to $850,000
Recent First Home Guarantee Scheme updates
From 1 October 2025, there are unlimited scheme places and property price caps have increased from $450,000 to $850,000 in WA. These changes expand eligibility and give first home buyers greater access to Perth’s property market.
Expanded eligibility
Removing income caps and limits on applicant numbers opens the scheme up to more buyers. This helps thousands of Australians enter the property market sooner.
Increased price caps
WA property price caps nearly doubled, allowing first home buyers to access more homes in Perth’s surging market.
How much could you borrow?
The scheme lowers the deposit you need. This works out the other half of the question: what a lender is likely to let you borrow, based on your income and commitments.
Borrowing Capacity
Calculated the same way your lender will assess you — 9% APRA serviceability buffer, 30-year term, 80% surplus ratio. Indicative only.
Your borrowing snapshot
Enter your income and expenses to see how much you could borrow today.
Estimated borrowing capacity
$0
Based on a 9% serviceability assessment.
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It's landing in your inbox right now. Meanwhile, here's the full breakdown:
Here's what your finances support.
Built from a 9% APRA-style serviceability assessment over a 30-year term. We've also sent a copy to your inbox.
What this enables
Total budget (with deposit)
$0
Max monthly repayment
$0
How we got there
- Net monthly income (after tax)
- $0
- Surplus available for repayments
- $0
Before you rely on a number
An estimate based on what you enter, not a loan approval or financial advice. Your lender will assess your situation on its own criteria.
How does it compare to the Help to Buy scheme?
Both schemes aim to help first-time buyers into property, but they work in fundamentally different ways. The Home Guarantee Scheme reduces the deposit you need; Help to Buy is a shared equity scheme.
| First Home Guarantee | Help to Buy | |
|---|---|---|
| What the government does | Guarantees up to 15% of your home to cover the deposit shortfall | Contributes up to 40% of the price as a shared equity stake, repaid over an agreed period |
| Minimum deposit | 5% | 2% |
| Income caps | No income limit | Income caps apply |
| Who owns the home | You do, in full | Shared with the government in proportion to its contribution |
| Lenders Mortgage Insurance | Not payable under the scheme | Not payable under the scheme |
First Home Guarantee Scheme FAQs
How is this scheme expected to affect the property market?
The scheme will help more people into the property market, but it’s also expected to fuel demand, which could lead to higher prices for property in Australia, particularly in areas with limited supply. The scheme may go some way to levelling the playing field by extending opportunities to single parents and those regionally based.
Why is this scheme a big deal for first home buyers?
It puts buying your first home within reach. Removing LMI and reducing the deposit substantially reduces the upfront costs of buying, which means you can put more of your money into creating the home you really want.
Do the higher price caps actually help in Perth?
Increasing property price caps reflects Perth house prices continuing to rise. More buyers can now use the scheme to find a forever home with real choice, rather than being confined to a small section of homes towards the lower end of the market.
How much lender choice do I get?
The scheme broadens the pool of potential lenders. There are over 30 participating lenders, from big banks like NAB and CBA to smaller regional and customer-owned banks, so there’s something for everyone. An effective broker should be able to offer you a number of different lending choices.
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