Home Ownership: Still Within Reach
For many young Australians, the dream of owning a home feels harder to grasp than ever. With living costs rising, strong property price growth, and wages struggling to keep pace, saving for a deposit can feel like an uphill climb.
According to Deloitte Access Economics, average home prices rose 67% in the decade to 2023 — from $548,000 to $915,000 — while average weekly incomes for 21–34-year-olds only grew 20%.
That gap has had a real impact. In 1981, about one-third of 20–24-year-olds lived with their parents. By 2021, that number had doubled to 63.8%. And for many, family support has become essential — 40% of young Australians aged 25–34 rely on family help to buy their first home.
But despite the challenges, home ownership is still possible — especially with the right guidance, planning, and access to today’s government initiatives.
The WA Perspective: Quarterly Relief, Annual Pain
Here in Western Australia, housing affordability has seen a mixed year.
According to the latest REIWA Housing Affordability Report (December 2025):
- Mortgage repayments now take up 40.5% of the average family income, down 0.5 percentage points quarterly, but still up 0.6 points over the year.
- The average Perth home loan is around $914,229 (CoreLogic Hedonic Value Index December 2025), increasing 2.4% over the last month and 13.1% year-on-year.
- Rental affordability continues to tighten, with rents consuming 24.2% of household income — worsening both quarterly and annually.
- Interest rate cuts provided short-term breathing space, but strong price growth continues to erode overall affordability.
In short, it’s been a story of quarterly relief but annual deterioration — a reminder that acting sooner, with a smart strategy, can make a real difference.
1. 🏡 Help to Buy Scheme
The Help to Buy program is a new shared equity initiative designed to make home ownership more accessible. Designed to allow Australians to be able to purchase with as little as a 2% deposit. The scheme bases loan servicing requirements only on the element you are borrowing allowing you to purchase (jointly with the government) a property of a much higher value than based on sole income.
The Australian Government can contribute up to:
- 30% of the purchase price for existing homes, or
- 40% for newly built homes.
That means you could buy your first home with as little as a 2% deposit.
Applications opened 5 December 2025, with 10,000 spots available each year.
Eligibility limits:
- $100,000 for individuals
- $160,000 for couples or single parents
2. 🏡 5% Deposit
Borrow up to 95% of the home’s value and proceed with the purchase.
What it is: The First Home Guarantee (also known as the 5% Deposit Scheme) allows eligible first-home buyers to purchase a home with just a 5% deposit, while the Australian Government guarantees the remaining 15% so they can avoid paying Lenders Mortgage Insurance (LMI). [firsthomeb…ers.gov.au], [addisons.net.au]
Who’s eligible: Must be a first‑home buyer (or single parent/guardian with a 2% deposit), an Australian citizen or permanent resident, over 18, using the property as their main residence, and meet any lender’s credit/serviceability checks. [firsthomeb…ers.gov.au], [russh.com]
Access: From 1 October 2025, the scheme removed previous income caps and quotas, introduced unlimited spots, and increased property price caps across regions (e.g., Sydney: $1.5M; Melbourne: $950K; Brisbane: $1M; Perth: $850K). [ministers….ury.gov.au], [zammitreal…ate.com.au], [homebuilding.com.au]
How it works:
Save at least a 5% deposit (2% for eligible single parents). Be mindful though that you still need to pay stamp duty and settlement costs in addition to the 5%.
Available through a limited number of lenders.
The Government guarantees 15% of the loan to avoid LMI.
3. First Home Super Saver Scheme (FHSSS)
The First Home Super Saver (FHSS) Scheme allows eligible first‑home buyers in Australia to save for a home deposit through voluntary contributions to their super fund, benefiting from tax efficiencies and potentially faster savings. Here’s a concise precis:
✨ What It Is and How It Works
You make voluntary super contributions (via salary sacrifice or after-tax) separate from employer super. [ato.gov.au], [commbank.com.au]
Annual cap: up to A$15,000; lifetime cap: up to A$50,000. [ato.gov.au], [writtenforyou.com.au]
When preparing to buy, you request a determination and can withdraw 100% of after‑tax and ~85% of before‑tax contributions, along with associated earnings. [ato.gov.au], [commbank.com.au]
Associated earnings are calculated by the ATO’s deemed rate, typically outperforming bank savings (e.g., ~7.38% in early 2024). [commbank.com.au], [treasury.gov.au]
✅ Pros
- Tax-efficient savings: Contributions and earnings in super are taxed at 15%, often lower than personal income tax.
- Boosted savings growth: Access to investment returns and a 30% FHSS tax offset on withdrawn taxable earnings.
- Disciplined approach: Funds are locked in super until eligible, preventing premature spending.
- Supports shared purchase: Partners, friends, or siblings each with their own FHSS allowance can combine savings.
- Higher cap means larger deposit: The $50,000 limit (raised from $30,000) enables substantial accumulation.
⚠️ Cons
- Time: It’s a savings scheme that’s designed to last at least a couple of years and will not assist in getting into a property sooner.
- Limited flexibility: Withdrawals must be used for your first home, with strict timelines and eligibility rules.
- Complex process: Requires an ATO determination before purchasing, and the release process can be slow.
- Contribution caps apply: FHSS contributions are part of existing concessional/non‑concessional super caps; exceeding caps may trigger extra tax.
- Opportunity cost: Growth potential might underperform if super markets dip or better alternatives exist outside super
4. Family Support Options
Many Perth buyers rely on family support to make their first purchase achievable. This can include:
- A cash gift toward the deposit.
- A family loan (formalised in writing).
- Acting as a guarantor, using equity as security. Find out more.
- Unlocking equity through refinancing and gifting the funds.
Each option carries different risks and benefits, so it’s important to seek professional guidance before deciding.
Your Next Step Starts Here
WA’s housing market may be evolving quickly, but that also means opportunities exist for buyers who are prepared and informed.
At Fox Mortgage Services, we help first-home buyers:
✅ Navigate schemes that suit their circumstances
✅ Compare lender options tailored for WA buyers
✅ Build a clear plan to enter the market sooner
Even in a changing market, the right strategy can make all the difference.
Let’s chat about your path to home ownership — and make your first home a reality.