For many families in Perth, owning a home is one of their biggest life goals. However, with the median house price being $1,319,750, it’s not something many can easily afford. At least not straightaway.
While the chance to put down roots in a community you love is a great objective, it can also feel like nothing more than a pipe dream when you’re juggling family expenses, childcare, and everyday bills.
That said, it is not impossible. Indeed, with the right strategy and a bit of discipline, you can eventually turn your wish into a reality. We’re not going to lie, it can be tough going. You’ll also need to understand aspects such as deposits, grants, borrowing power, and budgeting.
With that in mind, here’s our guide to how families in Perth can financially prepare to buy their own home.
Why is it important to prepare financially?
Buying a property is one of the biggest financial decisions most people ever make. But what many don’t realise is that this process starts long before they put in an offer.
To buy a property, owners need a deposit, which can take years to save up for. They must also be able to service the cost of mortgage repayments while simultaneously managing their general living expenses. They could include:
- Rates
- Utility
- Groceries
- Petrol
- Insurances
- School fees and supplies
- Car maintenance
Preparing yourself financially means making sure you have enough money to comfortably cover the above, and expenses for hobbies, recreation and holidays. Ideally, it also enables you to save money for a rainy day, which you’ll inevitably need when you own your home.
How much deposit do Families need to buy a home in Perth?
As a general rule, lenders require you to have a 20% deposit of the purchase price if you want to buy a home in Australia. They see this amount as representing less risk for them and, therefore, reduces the need for Lender’s Mortgage Insurance.
To put this into context, if you want to buy a home worth $800,000, you will need a deposit of $160,000 when applying for a loan. That said, recent government initiatives, such as their 5% Deposit Scheme, now allow first-time buyers to purchase a property with a deposit equivalent to that amount. The figure is 2% if you are a single parent or legal guardian.
This isn’t a grant. Rather, a scheme that is backed by the government. So, you will need to apply for a loan with a lender. Companies like AFMS Group can be an excellent resource for those wanting to benefit from them.
What other Government Grants and support are available for first-home buyers in WA?
Aside from this federal government initiative, the Western Australian state government also offers programs designed to help first-time buyers enter the property market. These schemes can help reduce the upfront costs of purchasing a home.
The First Home Owner Grant WA provides financial assistance to eligible buyers purchasing or building a new home. The $10,000 grant is valid for new homes being built under $750,000.
Another helpful benefit for many buyers is the stamp duty concessions that have recently been introduced. As of March 2026, WA first-home buyers can now access significant stamp duty (transfer duty) concessions. For instance, they do not have to pay duty on established homes or new builds up to $500,000. Additionally, significant concessional rates apply to homes up to $700,000 ($750,000 in regional WA). Vacant land up to $350,000 is also exempt, with a sliding scale in place for concessions up to $450,000.
These programs can make a meaningful difference for families saving their first deposit because grants and concessions reduce the upfront total required. For this reason, it is worth checking eligibility rules and current thresholds before beginning the buying process.
The hidden costs of buying your first home
When families think about buying property, saving for a deposit is often the first expense that comes to mind. However, there are several other costs involved in purchasing a home that buyers should plan for.
It is vital to understand the costs of buying a house in Western Australia, as this will help families budget more accurately. These expenses can include:
- Conveyancing or legal fees
- Building and pest inspections
- Loan establishment fees
- Property insurance
- Moving costs
- Utility connection fees
Building and pest inspections are especially important because they help identify whether the property you want to buy has any structural problems or damage. Don’t be tempted to skip these searches. They can save families from potentially costly repairs down the line.
Another thing to consider is that when you buy a property, there are plenty of costs involved in moving into your new home. Removalists, packing materials, and setting up utilities can all add up quickly. So, it is important to factor these costs into the equation.
How can Perth families improve their borrowing power
If you are serious about buying a property, it’s only natural that you will want to do all you can to improve your buying power. One of the first things you should do is establish your borrowing capacity. This is the maximum amount of money lenders would be prepared to give you.
Several factors will influence your borrowing power. They include your household income, savings history, and existing debts and spending habits.
Families may strengthen their borrowing position by taking these steps:
- Reducing personal debts, such as credit cards
- Paying bills on time to maintain a healthy credit history
- Saving each month consistently
- Avoiding unnecessary large purchases before applying for a loan
Essentially, lenders want to see that borrowers can comfortably manage their loan repayments. If you can demonstrate, over a prolonged period of time, that you practice strong financial habits, you’ll significantly improve the chances of securing a home loan on favourable terms.
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