Buying Your First Home
in Perth

How much deposit do you need to buy in Perth?

The deposit you need depends on the type of loan and the lender. As a general guide, most banks require a minimum deposit of 5 per cent of the purchase price. However, if your deposit is less than 20 per cent, you will usually need to pay Lenders Mortgage Insurance, which can add thousands of dollars to your upfront costs.

For first home buyers in WA, there are ways to reduce or eliminate this cost:

• Home Guarantee Scheme — purchase with a 5 per cent deposit and no LMI. The government guarantees the difference up to 15 per cent
• Keystart — a WA Government lending program that allows purchases with as little as 2 per cent deposit, with no LMI required
• Family guarantee — a family member uses equity in their property to support your loan, allowing you to avoid LMI without a full 20 per cent deposit

Beyond the deposit itself, you should budget an additional 3 to 5 per cent of the purchase price for upfront costs including legal fees, inspections, insurance, and government charges. Read our detailed guide on how much deposit you need in Perth.

WA grants and schemes for first home buyers

Western Australia offers some of the most generous first home buyer assistance in Australia. Understanding which schemes you qualify for — and how to stack them together — can save you tens of thousands of dollars.

Stamp duty for first home buyers in WA

Stamp duty (also called transfer duty) is a state government tax on property purchases. It is one of the largest upfront costs when buying a home. In Western Australia, the amount depends on the property value and whether it is a new or established home.

For first home buyers purchasing a new home, WA offers significant concessions. Properties valued at $430,000 or less attract a full exemption — you pay no stamp duty at all. For properties between $430,000 and $530,000, a reduced concessional rate applies. Above $530,000, standard duty rates apply.

For established homes, first home buyers in WA do not receive a stamp duty concession. However, the general duty rates still apply and you can use the Home Buyers Assistance Account to help cover some of the associated costs.

Read our detailed breakdown of stamp duty for first home buyers in WA.

Keystart vs bank home loan

Keystart is a WA Government initiative that helps people who might not meet the deposit requirements of a traditional bank loan. It allows purchases with as little as a 2 per cent deposit and does not require Lenders Mortgage Insurance.

The trade-off is that Keystart interest rates are typically higher than major bank rates — sometimes by 1 to 2 percentage points. Over the life of a loan, this can mean paying significantly more in interest. Keystart loans also have income limits and property value caps that may restrict your options.

Whether Keystart makes sense depends on your situation. If you can save a 5 per cent deposit and qualify for the Home Guarantee Scheme, a bank loan with a competitive rate may be the better long-term option. If you cannot save more than 2 per cent and need to get into the market quickly, Keystart gives you a path that banks do not.

A broker can compare both options side by side and show you the total cost difference over 5, 10, and 30 years. Read our full comparison of Keystart versus bank home loans.

Where to buy in Perth as a first home buyer

Location is one of the most important decisions you will make. The right suburb balances affordability with lifestyle, transport access, and long-term growth potential.

For first home buyers looking at Perth's northern suburbs, areas like Butler, Alkimos, and Yanchep offer newer housing developments with median prices still accessible under $500,000, along with train links and growing amenities. In the southern suburbs, Baldivis and Byford provide family-friendly environments with established infrastructure and schools.

If you are open to apartments or units, suburbs closer to the city — such as Bayswater, Midland, and Cannington — offer lower entry points with strong public transport connections and proximity to employment hubs.

The key is to look beyond the purchase price and consider what the suburb offers in terms of your daily life: commute time, schools, shops, parks, and future development. Read our guide to the best suburbs for first home buyers in Perth.

The home buying process — step by step

Buying your first home involves more steps than most people expect, but with the right preparation, the process is straightforward. Here is what to expect from start to finish.

Read our detailed walkthrough of buying your first home in WA step by step.

Why use a mortgage broker for your first home?

A mortgage broker compares home loans from multiple lenders on your behalf. For first home buyers, this is especially valuable because navigating grants, schemes, lender policies, and loan structures for the first time is complex — and getting it wrong can cost you money.

A broker can help you identify which grants and schemes you are eligible for and how to stack them, find the lender most likely to approve your application with the best terms, structure your loan to minimise costs (avoiding LMI where possible, choosing the right loan features), handle the paperwork and manage the application process from pre-approval through to settlement, and explain things along the way without the jargon.

Importantly, broker services are free to you as a borrower. The lender pays the broker a commission on settlement. This means you get access to expert advice and a wider range of options at no additional cost.

Read more about what a mortgage broker does for first home buyers.

Common mistakes first home buyers make

After helping hundreds of first home buyers, we see the same mistakes come up again and again. Avoiding these can save you thousands and a lot of stress.

• Not getting pre-approved first — looking at properties before knowing your budget leads to disappointment and wasted time
• Forgetting about upfront costs — the deposit is just one part. Stamp duty, legal fees, inspections, and insurance can add 3 to 5 per cent on top of the purchase price
• Going straight to one bank — your existing bank may not offer the best deal. A broker compares 50+ lenders to find what actually suits your situation
• Not understanding the grants — many first home buyers miss out on thousands of dollars in government support simply because they do not know what they are entitled to or how to apply
• Stretching too far — just because you can borrow a certain amount does not mean you should. Leave a buffer for rate changes, unexpected expenses, and the costs of actually living in and maintaining a home
• Skipping building and pest inspections — $600 now can save you $60,000 later. Never skip inspections, especially on older properties

Frequently asked questions

Ready to buy your first home?

Buying your first home in Perth does not have to be overwhelming. With the right guidance, you can navigate the grants, find the right loan, and move into your own place sooner than you might think. We help first home buyers every day — and we would be happy to help you too.