If you’re planning to buy your first home in 2026, you’re probably asking:
- Do I still need a 20% deposit?
- What government help is available?
- Are interest rates coming down in 2026?
- Can I actually afford to buy in Perth right now?
The good news? There are more pathways into property than most people realise, but lending rules, government schemes and property prices are always shifting.
Here’s what first home buyers need to know.
What’s Changed for First Home Buyers in 2026?
While interest rates remain influenced by the policy decisions of the Reserve Bank of Australia, lenders are becoming more competitive again, especially for owner-occupiers.
In 2026 we’re seeing:
- Greater competition between major banks and non-bank lenders
- More flexible genuine savings policies
- Increased use of government guarantee schemes
- Strong demand in Perth keeping entry-level prices competitive
For those looking to buy their first home in 2026, this means strategy matters more than ever.
What Government Help Is Available?
There are two major national schemes and additional state-based benefits available.
- First Home Owner Grant (FHOG)
The First Home Owner Grant provides a one-off payment when buying or building a new home (amount varies by state).
In WA, this can significantly reduce your upfront costs when purchasing new or building.
2. First Home Guarantee Scheme
The First Home Guarantee allows eligible buyers to purchase with as little as 5% deposit without paying Lenders Mortgage Insurance (LMI).
This is a major opportunity if you’re buying your first home in 2026, especially as property prices rise faster than savings rates.
Key points:
- Income caps apply
- Property price caps apply
- Limited places available each financial year
Do You Really Need a 20% Deposit?
Short answer: No.
Many buyers in 2026 are entering the market with:
- 5%–10% deposit using government schemes
- 10%–15% deposit with LMI
- Guarantor support
The real question isn’t “Do I have 20%?” — it’s:
> “Is buying now smarter than waiting another 2–3 years to save more?”
In a rising market like Perth, waiting can sometimes cost more than paying LMI.
What Are the Hidden Costs First Home Buyers Miss?
Beyond your deposit, budget for:
- Stamp duty (unless exempt/concessional)
- Conveyancing fees
- Building & pest inspections
- Loan establishment fees
- Moving costs
- Emergency buffer
Many buyers underestimate these by $10,000–$20,000.
How Much Can You Borrow in 2026?
Borrowing capacity depends on:
- Income
- Existing debts
- Living expenses
- Credit score
- Deposit size
With servicing buffers still in place, borrowing capacity is slightly tighter than pre-2022 levels, but strong income and low debt can significantly improve outcomes.
This is where working with a broker makes a difference: different lenders assess income differently.
Is Perth Still Affordable for First Home Buyers?
Compared to Sydney and Melbourne, Perth remains one of the most accessible capital city markets.
Strong population growth and limited housing supply are driving demand, particularly in:
- Entry-level house-and-land packages
- Established homes under median price
- Townhouses near transport corridors
The key is securing finance approval before you shop.
Frequently Asked Questions
The Smart First Step
Before attending home opens, your smartest move is:
- Confirm borrowing capacity
- Check eligibility for grants
- Structure deposit strategy
- Understand repayment comfort levels
At Base Home Loans, we create a clear, step-by-step plan so you know exactly where you stand, before you start searching.
Ready to See What’s Possible?
Book a free First Home Strategy Session and get:
- Personalised borrowing estimate
- Grant eligibility review
- Deposit strategy roadmap
- Repayment breakdown
Get in touch with us today to book your first home loan appointment.
