Western Australia's push to improve housing affordability has gathered pace in recent months. But mortgage brokers argue the support on offer has failed to keep up with the realities of Perth's property market.
"The Perth stamp duty and the Perth first homebuyer grant are out of sync with the market. A lot of the schemes and the grants in WA are out of touch from where the market is now," Matthew Posselt, owner and senior broker at Perth-based Elite Finance Australia, told Australian Broker.
State and federal governments have rolled out a range of measures aimed at boosting housing supply and improving affordability. At the national level, the Home Guarantee Scheme, also referred to as the 5% deposit scheme, expanded eligibility to all first-time homebuyers last October, removing income caps. Property price thresholds were also increased to better reflect market conditions. Eligible buyers can also avoid paying Lenders Mortgage Insurance (LMI), potentially saving tens of thousands of dollars in upfront costs.
But brokers say the measures still fall short in Perth, where the median home price is around $1 million while the scheme's property price threshold tops out at $850,000.
As of June, Perth buyers needed an extra $16,500 of annual income to get a mortgage, compared with January 2026, according to research firm Cotality. That same month, the median home value in Perth was $1,046,551, an increase of 23.9%, annually.
For many first-home buyers, affordability pressures do not end there. Under the Home Guarantee Scheme, stamp duty still applies to properties priced above $600,000, with concessional rates available only for homes valued between $600,000 and $800,000.
"This is where a lot of clients get confused," Claire Viskovich, founder, director and broker at Perth-based Beez Neez Finance, told Australian Broker. "They think it's a 5% deposit. But it's the 5% deposit, plus the cost of stamp duty. So most first-time homebuyers are still paying, if they want to purchase up to 850k. They've got to pay full stamp duty on that. So that ends up being quite a lot. The only way they can get out of stamp duty is if they build, because it's not on the land."
For a home that's worth $800,000 that's roughly $32,000 in stamp duty, according Viskovich.
The shortage of available housing only adds to the challenge. With supply remaining constrained and more properties pushing beyond the $1 million mark, many buyers are finding themselves priced outside the limits of existing government support.
"First-time homebuyers need to be on a decent income and pretty much need to be a couple to get anything. Otherwise it's just about impossible," Viskovich said.
At the state level, the Western Australian First Home Owner Grant (FHOG), offers a one-time payment of $10,000 from the WA Government. The grant is available to those purchasing or building a new home, but it does not apply to established properties. As of May 2026, homes in the Perth metropolitan area must be valued at no more than $800,000 to qualify.
But brokers say the grant’s eligibility limits have become increasingly disconnected from Perth’s housing market conditions.
"The medium house price was $500,000, probably five or six years ago. And now it's over a million dollars. But the government scheme is still only set to $850,000 in WA," Posselt said. "It's getting a lot harder for first-time homebuyers to get into the market as a result.
"I've definitely seen a lot more clients coming in with security guarantors, parents who are trying to assist the kids to get into the market," he continued. "There's a shortage of good house and land packages. There's still properties available. But it's getting harder."
The issue highlights the challenge facing policymakers as they seek to balance immediate affordability measures with longer-term supply solutions.
Posselt said managing client expectations has become an increasingly important part of helping would-be buyers navigate the current market.
"Maybe they don't get the dream home straight away. But just get into the market so that later when there is a dream home, they can be in that position," he explained. "Otherwise, it's thinking about doing a house and land package and buying some untitled land. At least trying to lock in the land price and in the market so that when it's ready, they're ready to go."
For Viskovich, finding opportunities often means looking beyond publicly-listed properties and tapping into her industry connections to uncover new options.
"I know heaps of real estate agents," she said. "If clients are looking for a home, I normally reach out. I've got about five agents. And I just ask them if they've got anything coming up in this price range, to try to get them something potentially off market."
