First Home Guarantee Scheme in Perth, The 2026 Guide

In 2026, Perth first home buyers have access to one of the most powerful government schemes available anywhere in Australia. With the First Home Guarantee Perth metro price cap now at $850,000 and no income or place limits, the scheme opens doors that would otherwise require years of additional saving.

The scheme lets eligible buyers purchase with just 5% deposit and no lenders mortgage insurance (LMI), saving tens of thousands on their first purchase. Whether you're looking in Baldivis - Ellenbrook or Canning Vale , the scheme creates genuine affordability for buyers who qualify.

Launch Finance helps first home buyers across Perth navigate the First Home Guarantee application process and compare lenders who participate in the scheme, completely free of charge.

Here's what you need to know about using the First Home Guarantee to buy your first home in Perth.

Can I use the First Home Guarantee in Perth with a 5% deposit?

Yes - the First Home Guarantee lets eligible buyers purchase with just 5% deposit and no LMI up to $850,000 in Perth. The government guarantees up to 15% of your loan, which means lenders treat your 5% deposit as if you had 20%, eliminating the LMI requirement that would otherwise cost you tens of thousands.

Your exact eligibility depends on your ownership history and the property you're purchasing, which is what we confirm for you in a free consultation before you apply.

How the First Home Guarantee works for Perth buyers

The scheme is designed to bridge the gap between what most first home buyers can save and what banks traditionally require. Instead of waiting years to save a 20% deposit, eligible buyers can act with 5% and government backing.

The guarantee covers the difference between your deposit and 20% of the purchase price. On a $700,000 Perth home, that's a $105,000 government guarantee - money you don't need to save upfront. Without the scheme, you'd pay approximately $21,000 in LMI on that same purchase.

First Home Guarantee eligibility and benefits in 2026

• First Home Guarantee : 5% deposit, no LMI, up to $850,000 in Perth metro (increased from $600,000 in October 2025).
• No income caps: removed October 2025, making the scheme accessible to all eligible buyers regardless of earning capacity.
• No place limits: unlimited positions available, removing the previous lottery-style allocation system.
• Ownership test: must not have owned property in Australia in the past 10 years (increased from previous 6-year requirement).
• Property types: houses, apartments, and townhouses - new or established - within the Perth metro area.
• Stacking benefits: can combine with WA stamp duty exemption (up to $500,000) or concession ($500,001-$700,000), and WA First Home Owner Grant ($10,000 for new builds).

• Launch Finance Like to find out if you qualify for the First Home Guarantee? The scheme criteria changed significantly in October 2025, and lender participation varies. A free chat with a Perth mortgage broker gives you a clear picture of your eligibility - no commitment, no pressure. 5-star review Local experts No obligations Book a free chat today →

How do mortgage brokers help Perth first home buyers access the scheme?

Not every lender participates in the First Home Guarantee, and those that do have different processing times, credit criteria, and interest rates. Using a mortgage broker means you get matched with the participating lender that gives you the strongest outcome, not just the first one you approach.

Step 1: Talk to us

Get in touch and we'll confirm your First Home Guarantee eligibility and identify which participating lenders offer the most competitive rates for your situation.

Step 2: Property search with pre-approval

We arrange pre-approval through a participating lender, so you can search for properties up to $850,000 knowing exactly what you can afford and that your finance is secure.

Step 3: Lodge your application

Once you've found a property, we coordinate the full application with your chosen lender, ensuring all First Home Guarantee documentation is complete and processed efficiently.

Step 4: Government guarantee approval

Your lender submits the guarantee application to the government on your behalf. This typically adds 5-10 business days to standard approval timeframes.

Step 5: Settlement preparation

We coordinate with your solicitor to ensure the guarantee documentation is ready for settlement, and that any additional schemes (stamp duty exemption, FHOG) are claimed correctly.

Step 6: Keys and ownership

At settlement, you receive your keys with just 5% deposit paid and no LMI charged. The government guarantee operates in the background - you make standard loan repayments to your lender.

Common First Home Guarantee mistakes to avoid

The biggest mistake Perth first home buyers make is assuming all lenders handle the scheme the same way. Participating lenders have different interest rates, credit criteria, and processing speeds - the variation can affect your borrowing capacity and settlement timeline significantly.

Never apply directly with just one lender without comparing your options. The scheme is valuable enough that it's worth getting the lender selection right, especially since you can only use it once. The wrong lender choice can cost you thousands in higher rates or delay your settlement unnecessarily.

Perth suburbs where the scheme works best

With the $850,000 Perth metro price cap, the First Home Guarantee now covers most Perth suburbs comfortably. Growth corridors like Baldivis and Ellenbrook offer strong value within the cap, while inner suburbs like Maylands and Bayswater provide connectivity and lifestyle benefits.

• Growth corridor value: suburbs like Harrisdale , Piara Waters , and Aveley sit comfortably under the cap with strong infrastructure and new housing stock.
• METRONET advantages: rail connectivity through Morley , Mount Lawley , and Midland creates long-term capital growth potential within the scheme limits.
• Apartment opportunities: unit markets in West Perth , East Perth , and Maylands offer entry-level ownership in established locations.
• Stacking opportunities: properties under $700,000 can combine the scheme with WA stamp duty savings - suburbs like Thornlie , Cannington , and Belmont offer this dual benefit.

• Launch Finance Ready to find out which lenders give you the best First Home Guarantee outcome? We compare loans from a wide panel of lenders across Perth. Free service, no cost to you. 5-star review Local experts No obligations Book a free chat today →

Frequently Asked Questions

Can I use the First Home Guarantee if I've owned property before?

No - you must not have owned property anywhere in Australia in the past 10 years. This includes investment property, overseas property that was your main residence, or any property owned jointly with a partner.

What's the maximum I can borrow under the scheme in Perth?

The Perth metro price cap is $850,000, but your actual borrowing capacity depends on your income, expenses, and the lender's assessment. Most buyers can borrow 5-6 times their gross income, depending on their financial position.

Do I still pay mortgage insurance if I use the scheme?

No - the government guarantee eliminates the LMI requirement entirely. On a $700,000 purchase, this saves you approximately $21,000 that would otherwise be added to your loan or paid upfront.

Can I combine the scheme with other government assistance?

Yes - the First Home Guarantee stacks with the WA stamp duty exemption (up to $500,000) or concession ($500,001-$700,000), and the WA First Home Owner Grant ($10,000 for new builds). These savings can total over $30,000 on eligible purchases.

How long does First Home Guarantee approval take?

The guarantee application typically adds 5-10 business days to standard loan approval timeframes. Most applications are approved within 2-3 weeks total, assuming all documentation is complete.

Should I use a broker or go to my bank for the scheme?

A mortgage broker, every time. Not every lender participates in the scheme, and those that do offer different rates, criteria, and processing speeds. Broker comparison ensures you get the participating lender that gives you the strongest outcome, not just the first one you approach.

What happens to the government guarantee when I sell?

The guarantee automatically ends when you sell the property. You repay your loan balance as normal, and any capital gain belongs to you entirely - the government doesn't share in the property's appreciation.

Your Next Steps

Using the First Home Guarantee effectively in Perth is about more than just qualifying for the scheme. The lender you choose affects your interest rate, borrowing capacity, and settlement timeline - differences that can save or cost you thousands over the life of your loan.

Ready to find out which participating lenders give you the strongest First Home Guarantee result? Contact the Launch Finance team for a free consultation or call 08 9367 4222. We'll assess your eligibility across our wide panel of participating lenders and identify the best fit for your deposit, income, and property goals.

Launch Finance Pty Ltd · ABN 17 163 528 701 · Launch Finance Pty Ltd is a Corporate Credit Representative (CCR No. 454041) of BLSSA Pty Ltd ABN 69 117 651 760 (Australian Credit Licence No. 391237) · General information only — this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.