On a typical Perth home, around $1.05 million in mid-2026 (Cotality Home Value Index, May 2026), a full deposit would be roughly $52,500 at 5% or $210,000 at 20%. Most first home buyers in WA get in for far less. Keystart asks for just 2%, and the federal First Home Guarantee lets you buy with 5% and skip Lenders Mortgage Insurance entirely. There is one catch almost every guide glosses over: at today's prices, a lot of Perth homes now sit above the schemes' price caps, so where you buy matters as much as how much you have saved.
This guide walks through the real numbers: the minimum deposit, the paths that get you in cheaper, what LMI and stamp duty actually cost, and the total cash you need in the bank before settlement day. All figures are current as of June 2026, with sources you can check.
What's the minimum deposit to buy a house in Perth?
The minimum is 5% of the purchase price with a mainstream lender, and as little as 2% if you go through Keystart, the WA Government's lender.
On a typical Perth dwelling worth about $1.05 million (Cotality Home Value Index, May 2026), 5% is around $52,500. That median covers all dwellings. Houses run higher, close to $1.09 million, while units sit nearer $770,000. So the deposit you actually need depends heavily on what kind of place you are chasing and which suburb.
One distinction trips a lot of people up here, and it is worth getting straight early: the minimum deposit is not the same thing as genuine savings.
- Minimum deposit is the share of the price you put in: 5%, or 2% through Keystart.
- Genuine savings is a lender rule. Most banks want to see that at least 5% of the price has been saved by you, in your own account, over about three months, not gifted and not a windfall. It is their way of checking you can hold money down.
The two often overlap, but not always. A gifted deposit might cover the 5% on paper yet fail the genuine-savings test. Keystart has no genuine-savings requirement at all, which is part of why it is the easiest door to get through. More on that below.
If you are not sure what price bracket you can actually borrow into, that is the place to start. NestPath's free borrowing power calculator gives you a realistic figure in a couple of minutes, no sign-up.
The realistic deposit paths for Perth buyers
There isn't one right deposit. There are a few genuine routes in, and the best one depends on your income, whether you qualify for the schemes, and how much you have saved. Here are the four that matter.
Keystart: 2% deposit, the lowest entry point
Keystart is a lender owned by the WA Government, built specifically to get locals into their first home with a small deposit and no LMI. The deposit is the higher of 2% or $2,000, and there is no genuine-savings requirement, so a 2% deposit you have only just pulled together still counts.
A few things to know before you bank on it:
- Price cap. In the Perth metro area the property limit is around $860,000 (lifted in April 2026). Lower caps apply in regional WA.
- Income limits. Roughly $155,000 for a single buyer and $228,000 for couples and families in Perth metro. Earn more than that and you are out.
- The rate is higher. Keystart's variable rate is above the big banks, around 7.85% p.a. at the time of writing (rates move, so confirm the live figure at keystart.com.au before you commit).
That higher rate is the trade-off. Think of Keystart as a stepping stone: you get in now with a tiny deposit, build equity as you pay down the loan and prices move, then refinance to a cheaper mainstream lender once you have 20% behind you. We have broken the whole thing down in our full Keystart guide.
First Home Guarantee: 5% deposit, no LMI
The First Home Guarantee is a federal scheme where the government guarantees part of your loan so the lender does not charge you LMI. You put in 5%, the government backs the gap, and you skip an insurance bill that can run tens of thousands of dollars. Since 1 October 2025 there are no income caps and no limit on places, so every eligible first home buyer can use it.
The catch the brochures tend to skip: the scheme has a property price cap of $850,000 in Perth (and $600,000 across the rest of WA). The typical Perth dwelling, that $1.05 million median, now sits above that cap. So the First Home Guarantee only works on a purchase under $850,000: think units, townhouses, or established houses in the outer and middle-ring suburbs. Plenty of those still exist, but you cannot assume the median house qualifies.
There is also a 2% deposit stream for single parents and single legal guardians (the old Family Home Guarantee). You do not have to be a first home buyer to use that one. To see which streams you are likely to qualify for, run the first home buyer eligibility checker.
Guarantor loan: the "no deposit" path
If a parent owns a home with decent equity, they may be able to act as a guarantor, using a slice of their property as extra security so you can borrow with little or no deposit of your own, and avoid LMI. It is a real and powerful option, and it is how a lot of younger Perth buyers actually get in.
Be honest with everyone about the risk, though. The guarantor isn't just lending their name. Their home is on the line if you cannot make repayments. Most families limit the guarantee to a set amount and release it once you have built enough equity to stand on your own. It is worth a proper conversation with a broker, and ideally the whole family, before anyone signs. A good broker can model exactly how much guarantee you would need; find one through NestPath for free.
20% deposit: no LMI, the best rates
Saving a full 20% means no LMI, no scheme caps to worry about, and access to the sharpest interest rates on the market. On a $1.05 million home that is around $210,000, a big number, and for most first home buyers in today's Perth market, years away. There is no shame in not having it. The schemes above exist precisely because saving 20% on a million-dollar home is out of reach for most people starting out.
Keystart vs the First Home Guarantee: which should you use?
These are the two most common low-deposit routes, and people often ask which is better. They are built for different situations. Here is the honest comparison.
| Keystart | First Home Guarantee | |
|---|---|---|
| Deposit | 2% (or $2,000, whichever is higher) | 5% |
| LMI | None | None |
| Genuine savings rule | No | Yes, 5% saved over about 3 months |
| Perth price cap | ~$860,000 | $850,000 |
| Interest rate | Higher than the banks (~7.85%) | Mainstream bank rates |
| Income limit | ~$155k single / ~$228k couple | None (since 1 Oct 2025) |
| Best for | Smallest possible deposit; no savings track record | You have saved 5% and want a normal bank rate with no LMI |
So: if you have genuinely saved your 5% and you are buying under $850,000, the First Home Guarantee usually wins on cost, because you get a mainstream interest rate. If you cannot quite get to 5%, or you do not have the savings history banks want, Keystart gets you in the door sooner. You just pay a higher rate until you refinance. The eligibility checker is the fastest way to see which doors are open to you.
How much is LMI in Perth?
If you buy with less than 20% deposit and you are not using the First Home Guarantee or Keystart, you will usually pay Lenders Mortgage Insurance. LMI protects the lender, not you, and on a Perth-priced home it isn't small.
There is no public LMI schedule. Every lender prices it through their insurer, so the only way to get your exact number is a quote. The ranges below are typical estimates, not a fixed table, based on a roughly $1.05 million purchase. Treat them as a ballpark.
| Deposit | Property price | Estimated LMI (varies by lender) |
|---|---|---|
| 5% (~$52,500) | ~$1,050,000 | ~$30,000 to $44,000 |
| 10% (~$105,000) | ~$1,050,000 | ~$15,000 to $20,000 |
| 15% (~$157,500) | ~$1,050,000 | ~$6,000 to $9,000 |
The bigger your deposit, the lower the LMI. It drops off sharply between 10% and 15%, and disappears at 20%. LMI is usually added to your loan rather than paid upfront, which means you also pay interest on it for years. For a figure tied to your own numbers, use NestPath's LMI calculator.
Stamp duty for WA first home buyers in 2026
This is the part where a lot of online guides are out of date, so read it carefully. Western Australia has announced more generous first home buyer duty thresholds in the 2026-27 Housing Taxation Package, but they are not in force yet — so it matters to separate what applies now from what is coming.
For a first home buyer in Perth, the current first home owner rate of transfer duty works like this:
- Up to $500,000: no transfer duty at all. A first home fully under this figure is exempt.
- $500,000 to $700,000: a concessional rate applies, rising gradually from $0 toward the general rate as the price climbs.
- Above $700,000: the general transfer duty rate applies, the same scale any buyer pays.
What's coming: the WA 2026-27 Housing Taxation Package, announced in the 7 May 2026 state Budget, lifts the full exemption to $600,000 and the concession ceiling to $800,000. It has not commenced yet — it's expected to take effect from around 28 July 2026. Until then, RevenueWA assesses first home purchases at the current $500,000 / $700,000 thresholds, then reassesses and refunds eligible buyers whose contracts are dated on or after 7 May 2026 once the new law commences.
What that means in practice today: buy a first home at or under $500,000 and your stamp duty is $0. Between $500,000 and $700,000 you pay a part-rate that grows as the price rises (for example, a $600,000 first home attracts roughly $13,630 in concessional duty right now). Once the announced package commences, the $0 band extends to $600,000 and eligible buyers from 7 May 2026 onward are reassessed and refunded. The exact dollar figure depends on the price, so run NestPath's stamp duty calculator for your number, and confirm the current position with your conveyancer at the time you buy.
The grant on top: WA First Home Owner Grant
Separate from the stamp duty concession is the First Home Owner Grant (FHOG), a one-off $10,000 payment. The catch is that it is for new homes only: building, buying off the plan, or a substantially renovated property. Buy an established house and you do not get it.
For homes south of the 26th parallel (which covers Perth and the south-west), the property value cap is currently $750,000. The same 7 May 2026 package lifts this to $800,000, but — like the duty thresholds — that change commences with the package, expected from around 28 July 2026, so until then $750,000 applies. North of the 26th parallel the cap is $1,000,000.
Do not confuse the grant with the stamp duty break. They are two different things, and you can potentially get both on an eligible new build. The full WA picture, including how to apply, is on our WA grants page.
What you actually need upfront: full worked scenarios
Deposit is only part of the cash you need on the table. Stamp duty, conveyancing, building inspections and other settlement costs all land before you get the keys. Here is the realistic total at a few price points a Perth first home buyer might actually be looking at.
These figures use the current WA first home owner duty rules ($0 up to $500,000, a concession from $500,000 to $700,000, general rate above $700,000). "Other costs" covers conveyancing, inspections, loan and settlement fees: budget around $3,000. Stamp duty figures are rounded estimates to plan around, not a quote; use the calculator for an exact figure.
| Scenario | Price | Deposit | LMI | Stamp duty | Other costs | Total cash needed |
|---|---|---|---|---|---|---|
| Keystart 2% | $500,000 | $10,000 | $0 | $0 | ~$3,000 | ~$13,000 |
| 5% + First Home Guarantee | $500,000 | $25,000 | $0 | $0 | ~$3,000 | ~$28,000 |
| 5% + First Home Guarantee | $600,000 | $30,000 | $0 | ~$13,630 | ~$3,000 | ~$46,600 |
| 5% + First Home Guarantee | $700,000 | $35,000 | $0 | ~$27,260 | ~$3,000 | ~$65,300 |
| Keystart 2% | $800,000 | $16,000 | $0 | ~$32,000 | ~$3,000 | ~$51,000 |
| 20% deposit | $700,000 | $140,000 | $0 | ~$27,260 | ~$3,000 | ~$170,300 |
A couple of things stand out. A first home at or under $500,000 carries no stamp duty at all, which is why the entry cost is so low. From $500,000 the concession tapers in, so a $600,000 first home pays around $13,630 and by $700,000 — the top of the concessional band — duty is around $27,260; above $700,000 the general rate applies (roughly $32,000 at $800,000). When the announced WA package commences (expected ~28 July 2026) the $0 band lifts to $600,000 and eligible buyers from 7 May 2026 are reassessed and refunded. The Keystart 2% route has the smallest deposit, but you will carry a bigger loan at a higher rate. Every figure here is an estimate to plan around, not a quote; your conveyancer and the WA calculator confirm the real numbers.
How long will it take to save a Perth deposit?
Once you have picked a target, the saving becomes a maths problem rather than a mystery. Say you are aiming for a 5% deposit on a $600,000 home: that is $30,000, plus a buffer for costs — and on a $600,000 first home, current WA rules charge roughly $13,630 in concessional stamp duty (the announced package would make it $0 once it commences, expected ~28 July 2026). Here is roughly how the timeline looks at different savings rates (before any interest on your savings):
- $200 a week to about $10,400 a year, roughly 3 years to $30,000.
- $300 a week to about $15,600 a year, roughly 2 years.
- $500 a week to about $26,000 a year, a little over 1 year.
Go the Keystart route and the target shrinks dramatically: 2% of $600,000 is just $12,000, which is exactly why it shortens the wait for so many WA buyers. Set your own number and watch it tick down with NestPath's deposit tracker. For the national picture, our Australia-wide deposit guide covers how the schemes and price caps differ from state to state.
Frequently asked questions
How much deposit do I need for a house in Perth in 2026?
The usual minimum is 5% of the price, around $52,500 on a typical $1.05 million Perth home, and it generally needs to be genuine savings (saved over about three months). You can get in for less: 2% through Keystart (no genuine-savings rule), or 5% with no LMI through the First Home Guarantee, provided you buy under the $850,000 Perth cap.
Can I buy a house in Perth with $50,000?
Yes, if you buy in the right price range. On a first home at or under $500,000, $50,000 can comfortably cover a 5% deposit plus costs, because stamp duty is $0 up to $500,000 under the current WA rules (rising to $600,000 once the announced package commences, expected ~28 July 2026). Between $500,000 and $700,000 a reduced concessional duty applies. On a $1 million-plus home, $50,000 is tight: the deposit alone eats most of it before any other costs. Where you buy matters more than the headline median.
Is the Perth median above the First Home Guarantee cap?
Yes. The typical Perth dwelling sits around $1.05 million (Cotality, May 2026), which is above the scheme's $850,000 Perth price cap. So the First Home Guarantee only works on a purchase under $850,000, but plenty of homes under the cap still exist, especially units, townhouses and houses in the outer and middle-ring suburbs.
Does Keystart need genuine savings?
No. Keystart has no genuine-savings requirement: your deposit is the higher of 2% or $2,000, and it does not have to have sat in your account for months. That is a key difference from the major banks, which typically want to see 5% saved by you over about three months before they will lend.
What's the catch with a 2% or 5% deposit?
The smaller the deposit, the bigger the loan, and the more interest you pay over time. With Keystart's 2%, the specific catch is a higher interest rate until you build equity and refinance. With a 5% deposit outside the schemes, the catch is LMI, which can run tens of thousands of dollars. The First Home Guarantee removes the LMI catch but caps the price you can pay.
Is Keystart worth it for Perth first home buyers?
It is worth considering if you cannot access the First Home Guarantee, cannot quite reach a 5% deposit, or do not have a savings track record the banks want. The higher interest rate costs more while you hold the loan, but it gets you into the market sooner, and most buyers refinance to a cheaper lender within a few years once equity builds.
What is the First Home Guarantee in WA?
It is a federal scheme that guarantees part of your home loan so you can buy with a 5% deposit and pay no LMI. Since 1 October 2025 there are no income caps and unlimited places. In WA the property price cap is $850,000 for Perth and $600,000 for the rest of the state, and there is a 2% deposit stream for single parents.
Not sure where you stand? NestPath's free borrowing power calculator gives you a realistic budget and flags which schemes you are likely to qualify for in a couple of minutes, or follow the whole path from saving to settlement with your first home buyer roadmap.
