What are First Home Buyer Statistics in Australia?

First home buyer activity in Australia shifts with interest rates, government policy changes and regional market conditions. The 5% Deposit Scheme has had no income caps and no place limits since October 2025, while Help to Buy provides up to 10,000 places each year through shared equity. For buyers in Noranda, these changes sit alongside Western Australian concessions that now apply statewide rather than by region.

What Proportion of Buyers Are First Home Buyers?

First home buyer participation varies by state and property type. Where established homes attract stamp duty concessions in most jurisdictions, new homes typically qualify for both grants and reduced or nil duty. Western Australia removed the distinction between the Perth Metropolitan and Peel regions and the rest of the State from 7 May 2026, creating a single statewide threshold. In Noranda, this means a first home buyer purchasing an established home pays no duty up to $600,000 and a concessional rate between $600,001 and $800,000. A buyer purchasing a new home in the suburb now qualifies for the $10,000 grant where the property value sits below $800,000.

Consider a buyer who finds an established home in Noranda valued at $650,000. Under the current First Home Owner Rate, they pay no transfer duty. A second buyer purchasing a new home at $750,000 receives the $10,000 grant and pays $3,230 in duty using the concessional rate. Both buyers occupy the property as their principal place of residence for at least six continuous months within 12 months of completion, meeting the residence requirement attached to these concessions.

How Many First Home Buyers Use a Deposit Under 10%?

Eligible first home buyers can purchase with a 5% deposit under the 5% Deposit Scheme, and eligible single parents or legal guardians with a 2% deposit. Housing Australia backs the lender for the part of the loan between the deposit and 20% of the property value, so no LMI is payable. The scheme applies to purchases where both the contract price and the lender's valuation sit at or below the price cap. Western Australia has price caps of $850,000 for capital city and regional centres and $600,000 for other areas. Noranda falls within the Perth metropolitan area, so the $850,000 cap applies.

A buyer purchasing in Noranda at $820,000 would provide a 5% deposit of $41,000. Without the scheme, a 20% deposit of $164,000 would typically be required to avoid paying lenders mortgage insurance. The scheme removes that gap, allowing the buyer to proceed with the lower deposit while Housing Australia provides the guarantee to the lender. Applications are made through a participating lender rather than directly with Housing Australia.

What Share of First Home Buyers Access Stamp Duty Concessions?

Most first home buyers in Western Australia access some form of stamp duty relief. The link between the FHOG value cap and FHOR eligibility has been removed, so a buyer can access the FHOR where the transaction exceeds the FHOG cap. This change, effective from May 2026, means a buyer purchasing at $850,000 still qualifies for the concessional duty rate even though the property exceeds the $800,000 grant threshold. In Noranda, where median values for established homes sit below the $850,000 scheme cap, most first home buyers will pay reduced duty or none at all.

Eligibility for the First Home Owner Rate follows the same criteria as the grant. At least one applicant must be an Australian citizen or permanent resident, and each applicant must occupy the home as principal place of residence for a continuous period of at least six months commencing within 12 months of completion. The buyer and their spouse must not have previously received the grant or the concession in any jurisdiction and must meet the property ownership conditions set out in the legislation. The concession applies to new homes, established homes and vacant land, giving Noranda buyers flexibility across property types.

How Does Help to Buy Affect Market Access?

Help to Buy is a shared equity scheme under which the Australian Government contributes up to 30% of the purchase price of an existing home or up to 40% of a newly built home, with 10,000 places each year. The minimum deposit is 2%, and the buyer owns the home and the Australian Government's share is repaid through voluntary payments, a buyback or sale, always based on the property value at the time of payment. Taxable income on the ATO notice of assessment for the previous financial year must be at or below $103,000 for individuals or $165,000 for single parents and joint applicants.

Participants cannot receive help from other schemes, which the criteria describe as including shared equity schemes and loan support provided by states or territories. This means a buyer using Help to Buy cannot also access the 5% Deposit Scheme. However, participants can still receive stamp duty concessions, grants and other exemptions. A Noranda buyer purchasing an established home at $700,000 through Help to Buy with a 30% government contribution would provide a 2% deposit of $14,000, with the government contributing $210,000 and the buyer borrowing $476,000. The buyer would pay no stamp duty under the First Home Owner Rate and would retain full ownership while the government's equity share is repaid over time.

What Percentage of First Home Buyers Purchase New Versus Established Homes?

Grant structures influence whether buyers target new or established stock. The FHOG is $10,000 for eligible buyers purchasing or building a new home and is not available for established homes. The grant applies where the property value sits below the relevant cap, which in Western Australia is now $800,000 for homes south of the 26th parallel. Noranda sits well within this area, so a buyer purchasing a new home or building on vacant land qualifies for the grant provided the value remains below the threshold.

Established homes do not attract the grant but still qualify for the First Home Owner Rate of duty. A buyer purchasing an established property in Noranda at $580,000 pays no transfer duty. A buyer purchasing a new home at the same price receives the $10,000 grant and also pays no duty. The financial difference between the two scenarios sits at $10,000, assuming identical purchase prices. Where a buyer has the choice between a new home at $750,000 and an established home at $740,000, the new home costs $10,000 more but delivers the grant, while the established home attracts $3,230 in duty. The net position narrows depending on the specific values and the buyer's preference for property age and condition.

How Do First Home Buyer Numbers Change With Interest Rate Movements?

First home buyer activity contracts when variable rates rise and expands when fixed or variable rates fall. Rate movements do not alter eligibility for grants or concessions, but they affect borrowing capacity and the size of the loan a buyer can service. In our experience, buyers who were pre-approved during a period of lower rates sometimes find their borrowing capacity reduced when rates rise before settlement, requiring them to adjust their target price range or increase their deposit.

A Noranda buyer approved for a loan at current variable rates will have their serviceability tested at the lender's assessment rate, which typically sits several percentage points above the actual rate. This buffer accounts for potential future rate rises. Where a buyer's income supports a loan of $500,000 at one assessment rate, a subsequent rate increase may reduce that figure to $480,000, requiring the buyer to either contribute a larger deposit or purchase at a lower price. First home buyers working with a broker can model these scenarios before committing to a purchase price, ensuring their application remains within serviceability limits even if rates move between pre-approval and settlement.

What Role Do Parental Guarantees and Gifted Deposits Play?

Family support remains common among first home buyers who lack the deposit or serviceability to proceed independently. A parental guarantee allows a buyer to borrow more than 80% of the property value without paying lenders mortgage insurance, by using the equity in a parent's property as additional security. This differs from the 5% Deposit Scheme, which removes the need for LMI through a government guarantee rather than family security.

A gifted deposit must meet lender requirements around genuine savings. Most lenders accept gifted funds from immediate family members, provided the buyer can demonstrate they have saved a portion of the deposit independently. The required savings percentage varies by lender and loan type, but commonly sits at 5% of the purchase price. Borrowing capacity calculations account for both the buyer's own savings and the gifted amount, with lenders assessing whether the buyer can service the loan without relying on ongoing financial support from family. A Noranda buyer receiving a $40,000 gift from parents and contributing $20,000 in genuine savings would meet the deposit requirement for a $600,000 purchase under most lender policies, provided their income supports the loan repayments.

Call one of our team or book an appointment at a time that works for you to discuss how current first home buyer concessions apply to your situation in Noranda.

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