First Home Buyer Guide: Navigating the Perth Housing Market in 2026
Buying your first home in Perth is an exciting milestone, but it can also be a daunting experience, especially as we look ahead to 2026. With the dynamic housing market and evolving lending policies, first home buyers need to be well-informed and prepared. This comprehensive guide will walk you through everything you need to know about purchasing your first home in Perth, from understanding the market trends to securing the best mortgage options available.
In This Article
Understanding the Perth Housing Market in 2026
As we project into 2026, Perth's housing market is expected to continue its growth trajectory. Factors such as population increases, infrastructure developments, and economic stability will play pivotal roles. First home buyers should keep a close eye on suburbs undergoing revitalisation, as these areas often offer more affordable options with potential for future value appreciation.
Navigating Government Incentives
First home buyers in Perth can benefit from various government incentives. The First Home Owner Grant (FHOG) is a one-time grant for eligible buyers, which can assist in easing the financial burden. Additionally, stamp duty concessions for first-time purchasers can significantly reduce upfront costs. It's crucial to stay updated with the latest criteria and application processes to maximise these benefits.
Securing a Mortgage: Tips and Advice
Know Your Borrowing Power
Understanding your borrowing capacity is crucial. Lenders typically assess your income, expenses, and existing debts when determining how much you can borrow. Use online calculators as a starting point, but consult with a mortgage broker for a more accurate assessment.
The Importance of a Good Credit Score
Your credit score plays a significant role in securing a favourable home loan. Aim to maintain a good credit history by paying bills on time and managing debts responsibly. Regularly check your credit report to ensure accuracy before applying for a mortgage.
Fixed vs Variable Rates
First home buyers often face the dilemma of choosing between fixed and variable interest rates. Fixed rates offer stability, protecting you from market fluctuations, while variable rates can be more flexible and potentially cheaper during periods of rate cuts. Assess your financial situation and risk tolerance when making this decision.
Practical Tips for First Home Buyers
- Save for a Deposit: Aim to save at least 20% of the property's value to avoid lenders mortgage insurance (LMI) and secure better interest rates.
- Research Suburbs Thoroughly: Look for suburbs with good amenities, schools, and transport links. Consider future growth potential.
- Get Pre-Approval: Before house hunting, secure a pre-approval from your lender. This gives you a clear budget and shows sellers you're serious.
Common Mistakes to Avoid
- Overextending Financially: It's easy to get carried away when buying your first home. Stick to your budget to avoid financial strain.
- Skipping Building Inspections: Always conduct a thorough building inspection to avoid costly surprises down the line.
- Ignoring Additional Costs: Factor in costs like conveyancing fees, insurance, and moving expenses when budgeting.
How Esteb and Co Can Help
At Esteb and Co, we understand the unique challenges faced by first home buyers. Our experienced mortgage brokers are here to guide you through every step of the process. From finding the right loan product to navigating government incentives, we provide personalised advice tailored to your circumstances. Contact us today to start your journey towards homeownership in Perth.
Frequently Asked Questions
Q: What is the First Home Owner Grant in WA?
A: The First Home Owner Grant in Western Australia is a one-time grant for eligible first home buyers purchasing or building a new home. As of 2026, it's essential to check the current grant amount and eligibility requirements.
Q: How much deposit do I need for a house in Perth?
A: Ideally, aim for a 20% deposit to avoid lenders mortgage insurance and secure better rates. However, some lenders may accept as little as 5% with conditions.
Q: What are the current interest rates for first home buyers?
A: Interest rates fluctuate based on economic conditions. It's important to consult with a mortgage broker or lender to get the latest rates available.
Q: Can I use my superannuation to buy my first home?
A: Through the First Home Super Saver Scheme, you can use voluntary super contributions to save for a home deposit. Check the latest scheme details for contribution limits and withdrawal conditions.
Q: What is pre-approval, and why is it important?
A: Pre-approval is a lender's conditional agreement to lend you a certain amount. It clarifies your budget and strengthens your position when making offers on properties.
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With direct experience helping Australians secure home loans, car finance, and business funding, Ricky founded Esteb and Co to bring transparency and technology to mortgage broking.