Perth is one of Australia's fastest-moving property markets in 2026 — and if you're a first home buyer in Western Australia, understanding your deposit options is more important than ever.
What Is the Minimum Deposit to Buy in Perth?
The minimum deposit most lenders require is 5% of the purchase price as genuine savings. With Perth's median dwelling value sitting at approximately $989,000 as of early 2026, a 5% deposit is around $49,450.
But the real question isn't just the minimum — it's how to avoid paying Lenders Mortgage Insurance (LMI) on top of it.
The Three Deposit Paths for Perth Buyers
Path 1 — 5% Deposit + First Home Guarantee (No LMI)
The federal government's First Home Guarantee lets eligible first home buyers purchase with 5% deposit and zero LMI. The government guarantees the remaining 15% to the lender. On a $989,000 property, that's approximately $49,450 deposit, $0 LMI. This is the best available option for most Perth first home buyers who qualify.
Path 2 — Keystart (WA Government, 2% Deposit)
Keystart is a Western Australian Government-backed lender offering home loans with as little as 2% deposit — no LMI required. This makes it the lowest deposit entry point available in WA.
Keystart has income and property price limits, and the interest rate is slightly higher than major banks. It's designed as a stepping-stone loan — most buyers refinance to a major lender once they've built equity. For a $600,000 property, a 2% Keystart deposit is just $12,000.
Path 3 — 20% Deposit (No LMI, No Scheme Required)
Saving 20% eliminates LMI entirely and gives you access to the most competitive interest rates. On Perth's median property, that's $197,800 — a significant target, but one that avoids all insurance costs and gives you the strongest negotiating position.
How Much Is LMI in Perth?
If you buy without the First Home Guarantee and with less than 20% deposit, LMI costs in Perth typically range:
| Deposit | Property Price | Estimated LMI |
|---|---|---|
| 5% ($49,450) | $989,000 | ~$28,000–$35,000 |
| 10% ($98,900) | $989,000 | ~$14,000–$18,000 |
| 15% ($148,350) | $989,000 | ~$5,000–$8,000 |
LMI is added to your loan — you don't pay it upfront — but it increases your total repayments over the life of the loan.
Stamp Duty for First Home Buyers in Perth
Western Australia charges transfer duty (stamp duty) on property purchases, but first home buyers receive significant concessions. As of 2026, first home buyers in WA pay no stamp duty on properties up to $430,000 and reduced duty on properties up to $530,000. For properties above that threshold, full duty applies. Use NestPath's stamp duty calculator to see your exact figure.
What Does a Perth First Home Buyer Actually Need?
Here's a realistic total for a $700,000 property in Perth in 2026:
| Scenario | Deposit | LMI | Stamp Duty | Other Costs | Total Needed |
|---|---|---|---|---|---|
| 5% + First Home Guarantee | $35,000 | $0 | ~$19,665 | ~$3,000 | ~$57,665 |
| 5% No Guarantee | $35,000 | ~$22,000 | ~$19,665 | ~$3,000 | ~$79,665 |
| Keystart 2% | $14,000 | $0 | ~$19,665 | ~$3,000 | ~$36,665 |
| 20% Deposit | $140,000 | $0 | ~$19,665 | ~$3,000 | ~$162,665 |
Frequently Asked Questions
How much deposit do I need for a house in Perth in 2026?
The minimum is 5% genuine savings (~$49,450 on the Perth median of $989,000). Through Keystart you can enter with 2%. Through the First Home Guarantee you can buy with 5% and pay zero LMI.
Is Keystart worth it for Perth first home buyers?
Keystart is worth considering if you can't access the First Home Guarantee or want the lowest possible deposit entry point. The higher interest rate costs more over time, but it gets you into the market sooner. Most buyers refinance within 3–5 years once equity builds.
What is the First Home Guarantee in WA?
It's a federal government scheme that guarantees 15% of your loan to the lender, allowing you to buy with 5% deposit and pay no LMI. As of October 2025 there are no income caps and unlimited places available. It applies across WA including Perth.
Can I buy a house in Perth with $50,000?
Possibly. $50,000 covers a 5% deposit on a ~$1,000,000 property through the First Home Guarantee (no LMI). But you also need stamp duty and costs on top — so $50,000 alone is tight. For a $600,000 property, $50,000 is more comfortable — $30,000 deposit + $20,000 for stamp duty and costs.
Not sure what you can afford in Perth? NestPath's free borrowing capacity calculator gives you your real borrowing power, deposit scenarios, and government scheme eligibility in under two minutes. 👉 Calculate what you can afford
