Finance options for first home buyers

For many first home buyers, finance feels like the biggest hurdle, and often the most confusing part of the journey.

You might know you can afford the repayments, but saving a deposit feels out of reach. Or you’ve heard about grants, guarantees and special loan schemes, but you’re not sure what actually applies to you.

Add industry jargon and conflicting advice, and it’s no surprise so many buyers feel stuck before they’ve even started.

The good news? There are more finance options available than most people realise. When you understand what’s out there — and how different pathways can work together — getting into your first home can become far more achievable.

Here’s a clear breakdown of the main finance options for first home buyers in WA, and how to approach them with confidence.

Start with borrowing power (Not guesswork)

Before looking at land or home designs, the first step is understanding what you can realistically borrow.

This isn’t just about income. Lenders also assess your expenses, existing debts, lifestyle and future commitments. Even small factors can influence how much a bank is willing to lend.

Getting clarity early helps you set realistic expectations and avoid disappointment later. It also means you can move forward knowing what’s possible — not guessing.

A good place to begin is understanding how much you can borrow based on your personal situation. Knowing your borrowing power gives you a solid foundation for every decision that follows, from land selection to builder choice.

Why a finance health check makes a difference

With so many options available, it’s easy for first home buyers to feel unsure which pathway makes the most sense.

A finance health check looks at your full financial picture — income, expenses, goals and future plans — to help you understand what’s realistic and what steps will move you forward. Often, small adjustments or the right loan structure can make a bigger difference than expected. And sometimes, it’s simply about having someone in your corner who can explain everything in plain English and help you make a plan.

Clarity builds confidence. And confidence changes how you approach the whole process.

Low-deposit loan options

Saving a 20% deposit is one of the biggest barriers for first home buyers, but it’s not always required.

There are several low-deposit loan pathways that can help eligible buyers get into the market sooner, including government-backed schemes and specialist lenders.

These options can reduce the upfront deposit needed while still offering competitive interest rates. The key is understanding the pros, cons and eligibility criteria, as low-deposit loans aren’t one-size-fits-all and need to align with your broader goals.

Keystart home loans (WA-specific option)

For first home buyers in WA, Keystart is often part of the conversation.

Keystart loans are designed to help eligible buyers purchase or build with a much lower deposit than traditional lenders. While interest rates can be higher initially, Keystart can be a valuable stepping stone into home ownership for buyers who meet the criteria.

Understanding how Keystart works, and whether it suits your long-term plan, is an important step before committing. In the right situation, it can be a powerful tool. In others, there may be better alternatives.

It’s about choosing what’s right for you.

Family guarantor loans

Another pathway some first home buyers consider is a family guarantor loan.

This involves a parent or close family member using the equity in their own home as security, which can reduce or eliminate the need for a cash deposit. While this option can help you enter the market sooner, it also comes with responsibilities and risk, not just for you, but for your guarantor. Everyone involved needs to fully understand what they’re agreeing to.

That’s why exploring family guarantor loans with proper guidance is essential before moving forward.