First Home Buyer Scheme vs First Home Owner Grant: What You Need to Know in 2025

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Buying your first property is one of the biggest financial moves you will ever make. To help, the government has a couple of programs designed to give first-time buyers a leg up. The two most talked about are the First Home Buyer Scheme and the First Home Owner Grant (FHOG).

The names sound similar, but they are very different in how they work, who is eligible, and how much you can save. Here is a simple breakdown so you can see which might suit your situation best.

The First Home Buyer Scheme (FHBG)

This scheme is designed to help you get into the market sooner by reducing the deposit hurdle. Normally, lenders want to see a 20% deposit to avoid paying Lenders Mortgage Insurance (LMI). Under the scheme:

• You can buy with as little as 5% deposit

• The government guarantees up to 15% of the property’s value so you do not pay LMI

• It applies to both new and existing homes

• There are price caps depending on the state and whether you are buying in metro or regional areas

For example, in WA’s metro areas, the cap is currently around $600,000. In regional WA, it is slightly lower. (Increasing to $850,000 from October 1st 2025) 

Who Is It Good For?

• Buyers with a steady income but not enough savings for a big deposit

• FIFO workers who have strong cash flow but not necessarily a 20% lump sum

The First Home Owner Grant (FHOG)

The FHOG is a one-off cash payment given by state governments when you buy or build your first home. In WA right now:

• The grant is $10,000

• It is only available if you are buying or building a new property (not an established one)

• There are caps on the property’s value (for example, $750,000 in Perth, $1 million in regional WA)

The grant goes straight towards your deposit or construction costs, giving you an upfront boost.

Who Is It Good For?

• Buyers looking to build a new home or purchase off the plan

• Anyone who is happy to live slightly further out where more new estates are being built

Can You Use Both?

Yes, and this is where smart buyers get the most out of the system. If you qualify, you can use the First Home Buyer Scheme to get in with a 5% deposit and also take advantage of the $10,000 FHOG to top up your deposit or reduce your loan.

For example:

• A $500,000 property in Perth

• Instead of needing $100,000 (20%), you might only need $25,000 (5%)

• Add the $10,000 grant, and suddenly your upfront costs drop even further

What This Means for You in 2025

With property prices still climbing in many parts of WA, these incentives can make the difference between getting into the market now or waiting another few years.

If you are FIFO and earning solid income, the schemes are especially valuable because they help turn cash flow into long-term wealth without needing to tie up all your savings at once.

Final Thoughts

The First Home Buyer Scheme and the First Home Owner Grant are not the same thing, but together they can be a powerful combo for first-time buyers.

The rules can be tricky, and they change depending on your state and the property you are looking at. That is where we step in. At Motivate Property Group, we help you cut through the fine print so you can move forward with confidence.

Thinking about your first property? 

Reach out to our team and we will walk you through what you qualify for and how to maximise these incentives. Just fill out your details below.