Big News for First Home Buyers: Buying Property in Perth

Big news is on the horizon for first home buyers in Western Australia. Starting 1 October 2025, the Home Guarantee Scheme (also known as the First Home Guarantee) is set to become significantly more accessible.

Two key changes are driving this transformation:

• Unlimited Places: No annual caps - every eligible first home buyer will have access to government-backed support.

• Higher Property Price Caps: The maximum property values eligible for assistance are being raised to better reflect current market realities in Perth and throughout WA.

Enter the Market with Just 5% Deposit

One of the most impactful changes is that first home buyers can now enter the market with just a 5% deposit, all while avoiding the hefty cost of Lenders Mortgage Insurance (LMI).

Through the Home Guarantee Scheme, the Australian Government acts as a guarantor, covering up to 15% of the property’s value, enabling you to borrow up to 95% of the property's value.

These expanded terms include:

• No income caps: that restriction is removed.

• Applicable across WA capital city and regional areas, with property price caps rising from $600,000 to $850,000 in capital cities, and from $450,000 to $600,000 in other areas.

Why It Matters for WA Buyers

WA property prices have grown rapidly in recent years, pushing first home buyers out of reach of traditional support limits. With higher caps and a lower deposit threshold, the expanded scheme opens the door to more buyers, faster access to ownership, and significant upfront savings, especially on LMI.

However, economic experts warn of potential market pressure. The scheme could boost near-term demand, which may drive up prices, particularly for properties most sought after by first home buyers. Some forecasts project property values in the most competitive segments could increase by 3.5% - 6.6% in the short term.

What This Means for You:

• For Sellers: Expect heightened demand for affordable homes, potentially leading to faster sales and more competitive offers.

• For Buyers: The opportunity is clear, but so is the need for preparation. Have your deposit ready, get finance pre-approval, and be prepared to act quickly.

• For Investors and Market Watchers: This policy highlights the importance of supply-side solutions to ensure housing remains accessible and prices stable.

Smart Steps for First Home Buyers:

1. Know Your Caps: Use Housing Australia’s tools or speak with your advisor to determine the new price limits for your area.

2. Prepare Your Finances: A 5% deposit may be enough, but you'll also need funds to cover legal fees, stamp duty, and other costs.

3. Apply Through a Participating Lender: You must go through a lender authorised under Housing Australia’s scheme, which includes a mix of customer-owned banks, regional banks, and major financial institutions.

4. Stay Informed: Keep an eye on property trends, market competition, and rate movements to time your purchase well.

How Adaptive Settlements Can Help

Buying your first home is both thrilling and daunting. At Adaptive Settlements, we specialise in guiding first home buyers, especially those leveraging the Home Guarantee Scheme, through the settlement process.

With our support, you'll be ready to act from 1 October 2025, equipped to navigate the market and seamless in your transaction.