Buying Your First Home

Buying your first home is exciting, but…

…the process (and the paperwork) can feel overwhelming.

So we've put together this guide to walk you through the essentials, broken into sections so it's easy to follow.

FIRST STEP: Watch this video of Tamara Virgo to learn more about Deposits.

First Home Buyer Guide

How do banks decide how much you can borrow?

1

When you apply for a home loan, lenders assess you against three key factors:

  • Capacity to repay – based on your current income, how much a bank is willing to lend you.

  • Deposit/equity – your loan-to-value ratio (LVR), and whether you have "genuine savings."

  • Character – how the bank views you as a borrower (account conduct, credit history, savings history, employment history, age, etc.)

Deposit - how much do I actually need?

2

ITEM

Saving a deposit is often the biggest hurdle for first home buyers, which is why both the state and federal governments offer grants and schemes to help.

Here's what's currently available.

Genuine savings

Lenders use "genuine savings" as a key measure of your financial discipline. It's usually required when your deposit is under 20% of the property value (though some lenders will waive this depending on your situation).

Counts as genuine savings:

  • Regular deposits into a savings account over 3+ months

  • Term deposits held for 3+ months

  • Shares or managed funds held for 3+ months

  • Equity in an existing property

Doesn't count as genuine savings (can be used just treated differently)

  • Gifts from family (can be used but not what we call genuine savings)

  • Tax refunds

  • Bonuses or lump sum payments

  • Inheritance (unless held in savings for 3+ months)

  • First Home Owner Grant

What grants and schemes can I access in WA?

3

First Home Owner Grant (FHOG) – new builds only

A one-off payment of $10,000 for first home buyers building or purchasing a newly constructed home to live in as their principal place of residence.

  • Property value cap: $800,000 south of the 26th parallel (Perth metro and most of the state), or $1,000,000 north of the 26th parallel.

Reference Website: https://www.wa.gov.au/organisation/department-of-treasury-and-finance/first-home-owner-grant-fhog

Stamp duty (transfer duty) concessions

  • Full exemption: no duty payable on homes valued up to $600,000, or vacant land up to $450,000.

  • Concessional rate: applies to homes valued $600,000–$800,000, and vacant land valued $450,000–$550,000.

Home Buyers Assistance Account (HBAA) wa.homebuyers.com.au

A grant of up to $2,000 to help cover incidental costs (like settlement agent fees and inspections) when purchasing an established home through a licensed real estate agent, generally for properties up to $500,000. Caps can vary, so we'll confirm based on your purchase.

Australian Government 5% Deposit Scheme (formerly the First Home Guarantee) housingaustralia.gov.au

This scheme lets eligible first home buyers purchase with a deposit as low as 5%, without paying Lenders Mortgage Insurance (LMI). As of October 2025, there are no income caps and no limit on the number of places available, so it's open to everyone who's eligible.

  • Property price cap: $850,000 for Perth and regional centres, or $600,000 for other WA areas.

What does this mean in real numbers?

4

Purchase price

Stamp duty

Settlement costs (approx.)

Lenders Mortgage Insurance

Total costs

Loan amount (95% LVR)

Deposit required

Here's an example breakdown for a purchase price of $600,000 using the 5% Deposit Scheme:

AMOUNT

$ 600,000

$ 0 (would be $XX without first home buyer concessions)

$ 4,500.00 (Estimate Only)

$ 0 (not applicable – government guarantee)

$ 604,500

$ 570,000

$ 34,500

Please note all figures are indicative only and are subject to change/confirmation.

As you can see, this is often the most cost-effective path, because it avoids LMI altogether. LMI protects the lender if you're unable to repay your loan and the sale of the property doesn't cover the shortfall - normally required once you're borrowing over 80% of the property's value. Under the 5% Deposit Scheme, the government guarantees that shortfall instead, so LMI isn't charged.

One important note: We can't apply for a place on the 5% Deposit Scheme until you have loan approval with a lender, so it's worth having a backup plan for your deposit in case there's a delay.

Just because you can borrow it doesn’t mean you should…

WATCH: First Home Buyer Mistakes to Avoid

Want to see the full picture for your situation?

GRAB OUR FREE EBOOK FOR FIRST TIME HOME BUYERS
MFAA_2021_National-Winner_REV_RGB_reg-fin-broker.png
MFAA_2021_State-Winner_REV_RGB_reg-fin-broker.png
accredited-behavioral-finance-professional-abfp.png
chartered-retirement-planning-counselor-crpc+(2).png
mfaa-non-full-member-colour.png
15-Year-Circle.png
TV Financial Services - BBA26 - Finalist - WA - Best Regional Broker.png

Hear what our clients say

  • "Re financing my home, after divorce, was made a lot less stressful with the help of the entire team. They helped me understand every step of the process. I wouldn't hesitate to recommend TV Financial Services to anyone making major financial decisions. Very special thanks to Tamara and James - LEGENDS!"

    TVFS Client

  • "TV financials helped us so much to buy our first home! Even though COVID-19 put a spanner in the works they made it work and I am so thankful they are so professional and helpful. "

    TVFS Client

  • "Just so grateful to have James help us with guidance on what best options were for us. And how supportive he has been with every step of the way."

    TVFS Client

  • "Thanks so much for all the work you guys put in! Would not of happened if it wasnt for your team."

    Keith Finley

  • "We can't thank TV financial enough for their exceptional customer service and help in achieving our financial goals. The team always go above and beyond and we will definitely be using them in the future."

    TVFS Client

  • "Tamara and company offered and delivered perfect service when it came to securing our first Mortgage. We certainly wouldn't hesitate to recommend their services."

    TVFS Client

  • "James and the team at TV Financial went above & beyond to assist through the whole purchasing journey. They provided expert advice to all queries that we had and made the process completely stress free. Thank you again."

    TVFS Client

  • "My husband and myself would like to thank ALL of the TV financial team, you have helped our dream turn into a reality, something we both put into the too hard pile. We having been working with Tamara and her team for about 18months, they have been so diligent in assisting us every step of the way. From just being married with no savings and in debt to being debt free and helping us get our first home... which we have just moved into!!!"

    TVFS Client

  • "Can't fault your service, James is so professional, extremely efficient and relatable! We had a fantastic experience with James and the whole team at TV financial, highly recommend you guys!"

    TVFS Client

  • "We can't thank TV financial enough for their exceptional customer service and help in achieving our financial goals. The team always go above and beyond and we will definitely be using them in the future."

    TVFS Client

  • "Tam, James and the crew provide friendly country service and were extremely efficient and knowledgeable in their field, providing sound and timely advice. I can highly recommend."

    TVFS Client

  • “Outstanding team providing exceptional financial services, including mortgages. Nothing is ever too much trouble. I would strongly recommend.”

    Sally Grandy

  • “On behalf of the Ravensthorpe Community Resource Centre, I would just like to say a very big thank you to yourself and Jesse for being a part of our Wellness Weekender event. Over the course of the weekend we hosted up to 40 people each day which was great to see! We appreciated your time and dedication in putting together your presentation, Wealth for Wellness. This was a perfect addition and helped us create an event that had something for everyone. We also had a great feedback from our participants who have encouraged us to host this again next year which we hope to do so. ”

    Ravensthorpe Community Resource Centre

If you believe you’re ready , contact us for a discussion.

BOOK A CALL