Everyone knows government home loan schemes WA support thousands of home buyers each year to buy or build homes.

But what are they, exactly?

Here’s a complete cheatsheet to understand the main schemes, eligibility, and how to make them work for you.

Some are grants that put cash in your hand to build or buy new homes.

Some are shared equity loans helping with low deposits.

Some involve reduced stamp duty or concessions to ease upfront costs.

Some are tailored specifically for first home buyers in growing suburbs like Baldivis and Rockingham.

Some schemes require navigating complex eligibility and income limits.

Let’s dive right in.

What is the First Home Owner Grant and How Does it Work in WA?

The First Home Owner Grant (FHOG) in Western Australia is a one-off payment designed to encourage  building their first new residential property.

To qualify, the home must be newly built or substantially renovated and intended for your principal place of residence. You can only claim the grant once per eligible transaction, so if two people buy together, only one grant is payable.

This scheme has spurred a surge of first-home buyers in WA, with suburbs like Baldivis, Piara Waters, and Brabham seeing high uptake numbers of grants approved in recent years, reflecting both affordability and growing communities. Source

How Do Keystart Loans Support Home Buyers in WA?

Keystart is a WA Government initiative which offers low-deposit home loans—sometimes with as little as 2% deposit—for eligible buyers who might otherwise struggle to secure a traditional mortgage.

Keystart loans target low to moderate income earners and prioritise first home buyers, with income limits and property price caps reflecting affordability concerns in WA’s housing market.

Keystart requires no lenders mortgage insurance, buyers can save thousands in upfront fees. However, interest rates tend to be higher than commercial lenders due to the increased risk and government funding model. It’s important to balance lower deposit benefits with potentially higher ongoing repayments. We can help you compare Keystart vs Traditional lender

Recent updates have raised the property price cap to $730,000, keeping pace with Perth’s median house prices and helping more buyers qualify.^Source

What Other Grants and Incentives Are Available for WA Home Buyers?

Beyond the FHOG and Keystart loans, additional WA Government incentives and federal grants can be combined to ease the financial burden of buying or building a home.

• First Home Guarantee: A federal scheme offering low deposit options without lenders mortgage insurance, accessible to eligible first homeowners.
• Stamp Duty Concessions: Significant relief or exemptions apply for eligible buyers on vacant land or newly constructed homes.Learn more about WA stamp duty waivers.

Combining these schemes demands a strategic approach — ideally with expert advice tailored to WA’s local property market and your personal circumstances.

Can I Use Government Home Loan Schemes in Baldivis, Rockingham, Port Kennedy, and Wellard?

Absolutely. These government schemes are designed with WA’s unique markets in mind, especially flourishing suburbs such as Baldivis and Rockingham.

For instance, Baldivis has emerged as a hotspot for first home buyers utilising FHOG and building grants to secure affordable homes close to Perth’s metropolitan fringe.

Rockingham and Port Kennedy also benefit from tailored home loan broker support helping buyers access Keystart loans, refinancing options, and investment home loans specific to the local dynamics. Explore mortgage broker Rockingham expertise.

If you’re buying or building in these suburbs, working with a local mortgage broker ensures you understand all the government assistance you can access.

Did you know? Keystart’s construction loan offerings have been adapted to ease borrower stress. For example, repayments during building construction can be capped at $400 per month, reflecting renter circumstances and reducing financial pressure during this stage.

How Do I Navigate Eligibility Criteria for WA Government Home Loan Schemes?

Eligibility varies across schemes. Here are the key factors you need to know:

• First Home Owner Grant: Must be Australian citizens or permanent residents, buying or building a new home to live in as a principal place of residence. The property price should be within stipulated limits.
• Keystart Loans: Income limits apply, currently around $148,000 for singles and $218,000 for couples , but these are adjusted to suit current market conditions. ^{More on eligibility}
• Stamp Duty Concessions: Often linked to property value and buyer status (first home, new home, etc.).

It’s essential to check the latest criteria direct with WA Treasury and Finance before applying to avoid surprises.

Why Should I Consider a Mortgage Broker for Government Home Loan Schemes WA?

Navigating government home loan schemes in WA can be tricky. A professional mortgage broker can:

• Explain all available schemes suited to your circumstances.
• Help match you with suitable lenders offering competitive rates and products.
• Ensure you meet eligibility criteria, helping prepare documentation.
• Assist in managing the loan application process smoothly.
• Provide insights specific to suburbs like Baldivis, Rockingham, and Port Kennedy, giving you a real edge in local markets. Mortgage Broker Baldivis advice here.

With lending policies and government criteria constantly evolving, your mortgage specialist is your best friend for keeping up to date.

How Do Government Shared Equity Loans Work in WA?

Shared equity schemes see the government co-owning a portion of your property, reducing your borrowing amount and deposit requirements.

WA’s Keystart program operates on this principle, making it easier for low-deposit buyers to enter the market without paying Lender’s Mortgage Insurance (LMI).

You pay a deposit, usually from 2%, and Keystart covers much of the rest. However, remember you will be paying interest on the entire loan amount at a competitive but often slightly higher rate.

This reduces your monthly repayments compared to a standard high-LVR loan, helping you manage finances in the early years of homeownership.

What Are Common Misconceptions About WA Government Home Loan Schemes?

Some home buyers think the schemes offer “cheap” or “best” home loans outright, but these products are designed to balance accessibility with financial sustainability for both buyer and government.

Others worry these schemes are too complex. While there are detailed eligibility criteria, local mortgage brokers can simplify the process dramatically.

Many assume you must be a first home buyer — but loans like Keystart can also help buyers re-entering the market after separation or financial hardship.

Wondering if you qualify for these schemes? The best time to find out is sooner rather than later. Early assessment avoids disappointment and helps you plan your property journey carefully. Contact us as we can let you know what is available to you.

How Can I Maximise Government Home Loan Schemes WA Benefits?

Maximising benefits requires a strategic approach. Here are some expert tips:

• Combine Grants: You could look to stack FHOG with the Stamp duty waiver and first home guarantee scheme.
• Choose the Right Loan Type: Some buyers may benefit more from conventional home loans with low deposit guarantees, while others find shared equity loans preferable.
• Understand Local Market: Working with a mortgage broker familiar with Baldivis, Rockingham, and Wellard can tailor loan products to suit the local property values and opportunities. Navigate first home buyer loans in Perth.
• Plan Your Budget Carefully: Factor in ongoing costs like rates, insurance, and potential shared ownership costs in shared equity loans.
• Keep Pre-approval Ready: Having a pre-approval can put you in the strongest position when you find your right home.

With these steps, government home loan schemes WA become a powerful tool on your homeownership path.

How Do I Apply for Government Home Loan Schemes WA and What Should I Prepare?

Starting your application involves gathering:

• Proof of identity and residency status.
• Evidence of income such as payslips and tax returns.
• Details of the property or building contract.
• Details of your savings and deposit sources.
• Bank statements
• Tax returns and Notice of assessment

Most grants applications are handled directly via the lender and via your mortgage broker. For Keystart, you can start your enquiry online or via a WA-based mortgage broker.

Getting expert advice early helps you avoid common pitfalls such as incomplete paperwork or misunderstanding income limits.

Ensure you verify up-to-date information from official sources like WA Treasury and Finance or speak with a qualified home loan broker based in WA.

Frequently Asked Questions About Government Home Loan Schemes WA

Can I get government grants if I buy an established home?

Most grants, including FHOG, apply only to new builds. However, some stamp duty concessions and Keystart loans can help with established homes — check specific scheme rules. A newly built home (off the plan ) can be eligible for FHOG.

Do I have to live in the property to keep the grant?

Yes. For most government grants, the property must be your principal place of residence for a minimum period, typically six months.

Can I apply for multiple grants at once?

Yes, subject to eligibility. For example, first home buyers can combine the FHOG with the Federal HomeBuilder and WA Building Bonus grants when building new homes.

Are these schemes available for investment properties?

No. These schemes generally apply only to owner-occupied properties for the purchaser’s principal residence.

What’s Your Next Step?

Tell us in the comments: How will you apply this to your home buying journey? For personalised advice tailored to Baldivis, Rockingham, Port Kennedy, and Wellard, contact us!