The Pros and Cons of Buying Your First Home in Aveley

Buying your first home in Aveley means choosing between several schemes, and each one has benefits and limits. This article sets out what is available to Western Australian buyers as at November, and what each option costs you in return.

What Grants and Duty Relief Can a First Home Buyer Claim in Western Australia?

Western Australian first home buyers can claim a $10,000 first home owner grant on a new home, plus a reduced stamp duty rate on new or established homes and vacant land. The grant does not apply to established homes.

The pros are clear. There is no income or assets test for the grant. For homes south of the 26th parallel, which includes all of Perth, the value cap is $800,000. The trade-off is the occupancy rule. You must live in the home continuously for at least six months, starting within 12 months of completion. Applications must be made within 12 months of completion. If you are building, a construction loan may be part of the plan.

The buyer and their spouse also must not have previously received the grant or the first home owner rate of duty in any state or territory. Prior property ownership conditions apply as well.

First Home Owner Rate of Duty: How the Stamp Duty Concession Works

From 7 May 2026, no stamp duty is payable on a Western Australian home up to $600,000. Between $600,001 and $800,000, duty is $16.15 for every $100 or part of $100 above $600,000.

For vacant land, no duty is payable up to $450,000. Duty then applies at $20.14 per $100 or part of $100 between $450,001 and $550,000. Eligibility follows the grant criteria, even where no grant is payable. This means a buyer can use the concession on an established home or on a purchase above the grant's value cap.

As an example, consider a couple buying an established home with a dutiable value $100,000 above the $600,000 threshold. The duty is 1,000 lots of $100 at $16.15, which is $16,150. They qualify for the concession but still need to budget that amount alongside legal fees, inspections and mortgage registration costs. They add it to their savings target before making an offer. The outcome is a settlement budget with no surprise at the end. The concession reduces duty, but it does not remove the cost once the price passes $600,000.

Low Deposit Options: Which Scheme Suits You and What Does It Cost?

The main low deposit options are the 5% Deposit Scheme, Help to Buy, Keystart and the First Home Super Saver scheme. Each reduces the savings you need, but each carries conditions.

The Australian Government 5% Deposit Scheme lets eligible first home buyers purchase with a 5% deposit. Housing Australia backs part of the loan, so no lenders mortgage insurance is payable. There are no income caps. The trade-offs are a price cap and an occupancy rule. In Western Australia, the cap is $850,000 for the capital city and regional centres category and $600,000 for other areas. The cap for your suburb depends on its postcode in Housing Australia's search tool. You must move in within six months of settlement and stay while the backing is active, or the lender may require you to pay the insurance. The backing protects the lender, not you. Applications go through a participating lender, and a mortgage broker can help you compare first home buyer loan options.

Help to Buy is a shared equity scheme. The Australian Government contributes between 5% and 30% of an existing home's price, and up to 40% for a new home. You do not make repayments on that share. The trade-off is that the Government owns part of your home. Its share rises and falls with the property's value. Your income is also reviewed at least every five years, and income thresholds apply, which are $103,000 for a single applicant and $165,000 for joint applicants. Help to Buy cannot be combined with the 5% Deposit Scheme or state shared equity schemes.

Keystart is a Western Australian Government lender that offers low deposit loans from a 2% deposit. Income and property price limits apply, so check them before applying.

The First Home Super Saver scheme lets you use voluntary super contributions towards a deposit. Up to $15,000 a year and $50,000 in total count towards release. The trade-offs are that tax is withheld on release, and the process takes time. In most cases, it takes 15 to 20 business days to receive the money. You must also sign a contract or recontribute within the set time limits, or extra tax applies. Speak to your accountant before you contribute.

Does Pre-Approval Help Set a Realistic First Home Buyer Budget?

Pre-approval gives you an indication of how much a lender may let you borrow, so you can set a price range before you inspect homes. It is not a final loan offer. The lender still assesses the property and your circumstances at application.

Consider a buyer who is pre-approved to borrow $500,000. At the illustrative rate of 6.75% p.a. over 30 years, the repayment is about $3,243 a month. Your actual rate depends on your deposit and lender. The buyer compares this figure with current rent and other expenses. They find the repayment is manageable but leaves little room for rises, so they aim for a lower purchase price and a loan under $500,000. The result is a search focused on homes they can afford comfortably, instead of the maximum the lender will allow.

You can test your own numbers with the mortgage repayment calculator and check your borrowing capacity before you start. The trade-off with pre-approval is that it is time limited, and a change in your income, debts or savings can affect the outcome.

If you are buying in the northern suburbs of Perth, our mortgage broker in Aveley page explains how we work with local buyers. Call one of our team or book an appointment at a time that works for you, and we will help you choose the schemes that suit your deposit, your income and your plans.

Frequently Asked Questions