The Western Australian property market continues to move at a rapid pace, and for first-time buyers trying to get a foot on the ladder, keeping up with changing regulations is half the battle. At Holdsworth Real Estate, we are seeing a massive wave of interest from young buyers looking to transition out of the rental market and into their own homes.
If you are a first-time buyer in WA, we have some fantastic news that could significantly boost your purchasing power. Following recent policy adjustments, the property value caps for the First Home Owner Grant (FHOG) have officially increased, making it easier than ever to secure a brand-new home in the Greater Perth area.
Here is a comprehensive breakdown of how the current FHOG works, what has changed, and how you can leverage it alongside other government incentives to break into the WA market.
What is the First Home Owner Grant (FHOG)?
Unlike the Australian Government’s 5% Deposit Scheme—which acts as a loan guarantee—the FHOG is a genuine, one-off cash payment of up to $10,000 provided by the WA Government to help you buy or build a brand-new residential property.
It is important to understand that this grant applies specifically to new construction. This includes:
- Off-the-plan apartments or townhouses
- Newly built, never-before-occupied homes
- Packages where you contract a builder to build on a block of land
- Certain substantially renovated properties
The core rule to remember is that established homes do not qualify for the FHOG. Furthermore, the grant applies per transaction, not per person. If you are buying a home with a partner or a friend, you will receive one $10,000 grant together, rather than $10,000 each.
Breaking Down the New Property Value Caps
The biggest and most relevant update for today’s market involves the maximum property values allowed under the grant. To account for shifts in Perth’s median house prices, the government implemented new caps for transactions commencing on or after 7 May 2026.
The value of your transaction must fall within these boundaries:
| Property Location | Maximum Value Cap |
| South of the 26th Parallel (Includes all of Greater Perth, Peel, and the South West) | $800,000 |
| North of the 26th Parallel (From Shark Bay upwards, including the Pilbara and Kimberley) | $1,000,000 |
How is the total value calculated?
- If you are buying off-the-plan or a newly built home: The calculation is generally based on the greater of the purchase price or the market value of the home at the time the contract was signed.
- If you are building your home: The total value is calculated by adding the value of your land to the total cost of your building contract (including any variations made along the way).
Who is Eligible for the $10,000?
While the FHOG is incredibly accessible—notably, it is not income or assets tested, meaning your personal salary won’t disqualify you—there are several strict criteria you must meet to access the funds:
- Age: You must be 18 years or older at the time of application.
- Residency: At least one applicant must be an Australian citizen or permanent resident.
- Prior Ownership: Neither you nor your spouse/de facto partner can have previously owned residential property anywhere in Australia that would make you ineligible, nor can you have previously received an FHOG or a first home owner rate of duty.
- Residency Requirement: You must move into the home within 12 months of completing the transaction (settlement or handover) and live there as your primary residence for a continuous period of at least six months.
Buying Established? You Haven’t Been Left Behind
If your heart is set on a charming, character-filled established home in one of Perth’s mature suburbs, don’t worry. While you won’t get the $10,000 cash grant, you may still qualify for the First Home Owner Rate of Duty.
This concession significantly reduces or entirely eliminates the transfer duty (formerly known as stamp duty) you have to pay when buying your property. In a competitive market, saving thousands of dollars on upfront transfer fees can easily free up the extra cash you need for your deposit.
Timing and Application: What Next?
The FHOG is an incredible tool, but it does not replace the fundamental need for a home loan approval or a solid deposit. Lenders will still look closely at your borrowing capacity, employment history, and genuine savings to ensure you can comfortably service the mortgage.
You can apply for the grant as soon as your contract to buy or build has been signed and dated by all parties, and you have up to 12 months from the completion date (usually settlement for a purchase, or when the occupancy permit is issued for a build) to lodge your paperwork. Applications can be processed seamlessly through RevenueWA or via an approved agent, which includes most major financial institutions and mortgage brokers.
The Holdsworth Advantage
Navigating your very first property purchase can feel overwhelming, but you don’t have to do it alone. The team at Holdsworth Real Estate is here to help you maximize your benefits, from finding the perfect off-the-plan opportunity to connecting you with specialized brokers who understand how to package the FHOG into your lending strategy.
Are you ready to take the first step toward homeownership? Reach out to our office today to chat about the latest listings matching the new WA caps!
