Proven tips to save for your first home in WA

Saving a deposit takes longer than most first home buyers expect.

WA public sector employees have access to salary structures and savings options that can shorten that timeline, but knowing which accounts to use and how much you actually need changes depending on whether you qualify for the Australian Government 5% Deposit Scheme, the Western Australian FHOG, or the FHOR concession.

How much deposit you need depends on the scheme you qualify for

Under the Australian Government 5% Deposit Scheme, you need a 5% deposit. Housing Australia guarantees the difference between your deposit and 20% of the property value, so LMI does not apply. In Western Australia, the property price cap is $850,000 for Perth and applicable metropolitan postcodes, and $600,000 for the rest of the state. If you are purchasing in regional Western Australia, confirm the applicable cap using Housing Australia's postcode search tool before you commit to a price range.

If you are purchasing outside the scheme but qualify for an [LMI waiver as a WA public sector employee](/lmi-waivers-for-public-servants/, you may be able to borrow with a deposit as low as 5% to 10% depending on your lender's policy. Some lenders waive LMI for WA Government employees on loans with a loan-to-value ratio up to 95%, which means a 5% deposit. Others require at least 10%. The waiver does not increase your borrowing capacity, but it removes a cost that would otherwise add thousands to your upfront or ongoing expense.

For buyers purchasing an established home using a standard loan structure without a government guarantee or LMI waiver, a 20% deposit avoids LMI and gives access to more loan products. That means $100,000 on a purchase at the Perth median.

The FHOR removes stamp duty on many WA purchases

From 7 May 2026, a single statewide threshold applies to the FHOR regardless of whether the property is in Perth, Peel, or regional Western Australia. No duty is payable on homes valued up to $600,000. A concessional rate applies on homes valued between $600,001 and $800,000.

For vacant land, no duty is payable on land valued up to $450,000, with a concessional rate on land valued between $450,001 and $550,000.

This concession applies to both new and established homes. From 7 May 2026, the link between the FHOG value cap and eligibility for the FHOR was removed. You can access a duty concession on transactions that exceed the grant value cap, which is $800,000 south of the 26th parallel and $1,000,000 north of it.

Using the FHSS Scheme to build a deposit through super

The FHSS Scheme allows you to make voluntary concessional and non-concessional contributions into your super fund and apply to release eligible amounts toward your deposit. You can release up to $15,000 of personal contributions from any one financial year, with a total cap of $50,000. Concessional contributions are taxed at 15% rather than at your marginal income tax rate.

Consider a WA public sector employee earning $90,000 who salary sacrifices $10,000 per year into super for three years. That $30,000 in contributions is taxed at 15%, not the marginal rate of 30% or 32.5%. When released, the amount is taxed at your marginal rate less a 30% offset. The tax saving on the way in is the primary advantage.

You need to obtain a determination from the ATO before signing a purchase contract. The determination confirms the amount you are eligible to release. If you sign a contract before receiving the determination, you may not be able to access the funds in time for settlement.

For public sector employees with stable income and a multi-year savings timeline, salary sacrifice through the FHSS Scheme can be more tax-efficient than a standard savings account, particularly if you are already maximising offset or high-interest savings accounts elsewhere.

Where to hold your savings while you build the deposit

High-interest savings accounts and offset accounts attached to existing loans are the two most common places to park savings. High-interest accounts often require monthly deposits and no withdrawals to maintain the bonus rate. Offset accounts reduce the interest payable on an existing loan, which can be useful if you already own an investment property or are paying down a car loan, but they do not provide a direct return if no loan is attached.

For WA public sector employees using salary sacrifice through the FHSS Scheme, the concessional tax treatment inside super provides a return that is difficult to match outside super during the accumulation phase. The trade-off is reduced liquidity. Once you commit funds to super under the FHSS Scheme, they can only be released under specific conditions, including for a first home purchase or if you become ineligible and apply for a release on other grounds.

If you are saving for a purchase within 12 months, a high-interest savings account gives immediate access and predictable growth. If your timeline is two to four years and your income is stable, salary sacrifice through super offers a higher after-tax return.

Planning for settlement costs beyond the deposit

Buyers often focus on the deposit and overlook settlement costs. In Western Australia, those costs include conveyancing, building and pest inspections, loan establishment fees, and valuation fees. Even if the FHOR removes transfer duty, settlement costs still apply.

Conveyancing for a standard residential purchase in Perth typically falls between $1,200 and $1,800. Building and pest inspections combined range from $500 to $800. Lender valuation fees vary but are often between $200 and $400. Loan establishment fees depend on the lender and loan structure, but can reach $600 or more.

A buyer using the Australian Government 5% Deposit Scheme on a property at the $850,000 cap would need $42,500 for the deposit, plus approximately $3,500 to $4,500 in settlement costs. That means holding at least $46,000 to $47,000 in accessible savings by settlement.

Genuine savings and non-genuine savings

Lenders distinguish between genuine savings and non-genuine savings. Genuine savings are funds you have held and accumulated over a period, typically at least three months. Non-genuine savings include recent gifts, tax refunds, bonuses, or windfalls that have not been held for the required period.

Most lenders require at least 5% of the purchase price in genuine savings if you are borrowing above 90% of the property value. Some lenders accept gifted deposits as part of the total deposit, but they still expect a portion to be genuine savings. The gift must usually come from an immediate family member, and the lender may require a signed declaration that the gift does not need to be repaid.

If you are a WA public sector employee using an LMI waiver to borrow at 95%, the lender will still assess your savings history. A pattern of consistent savings over six to twelve months strengthens your application more than a sudden deposit of gifted funds two weeks before you apply.

Combining state and federal schemes

You can use the Western Australian FHOG and FHOR alongside the Australian Government 5% Deposit Scheme. The schemes are not mutually exclusive. If you qualify for all three, you can enter the property market with a 5% deposit, no LMI, no transfer duty on a property valued up to $600,000, and a $10,000 grant if you are purchasing or building a new home south of the 26th parallel.

The FHOG in Western Australia is $10,000 for new homes valued up to $800,000 south of the 26th parallel, or $1,000,000 north of it. The grant does not apply to established homes. At least one applicant must be an Australian citizen or permanent resident, and each applicant must occupy the home as their principal place of residence for a continuous period of at least six months commencing within 12 months of completion.

For buyers targeting new homes in regional Western Australia, the combination of the FHOG, the FHOR, and the 5% Deposit Scheme can reduce upfront costs to the point where the deposit and settlement costs total less than $35,000 on a $550,000 purchase.

When to apply for pre-approval

Pre-approval confirms how much you can borrow and locks in an indicative rate for a set period, usually 90 days. It does not guarantee final approval, but it allows you to make an offer with confidence that finance is available.

Apply for pre-approval once you have a deposit that meets the lender's genuine savings requirement and a clear view of where you want to purchase. Getting loan pre-approval before you attend auctions or make offers gives you certainty on your price range and strengthens your position with vendors.

If you are using the Australian Government 5% Deposit Scheme, apply through a participating lender. Not all lenders participate, and the loan features available under the scheme vary by lender. Fixed rate, variable rate, and split loan structures may be available depending on your chosen lender. Confirm available loan features directly with your lender before submitting your application.

Call one of our team or book an appointment at a time that works for you. We work with WA Government employees who are buying their first home and can walk you through each stage of the deposit and application process.

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