How Much Deposit Do You
Need in Perth?

Your deposit options in WA

The deposit requirement depends on the loan type and whether you qualify for government assistance. Here are the main paths available to first home buyers in Perth:

• 2 per cent deposit — available through Keystart, a WA Government lending program. No LMI required, but interest rates are typically higher than bank rates
• 5 per cent deposit — available through the Home Guarantee Scheme. The government guarantees the remaining 15 per cent, so no LMI is required. Property price cap in Perth is $850,000
• 5 to 19 per cent deposit — available through most banks, but you will need to pay Lenders Mortgage Insurance. LMI can cost several thousand dollars and is usually added to the loan
• 20 per cent deposit — the threshold for avoiding LMI entirely. For a $500,000 home, this means saving $100,000

What counts as genuine savings?

Most lenders require you to demonstrate genuine savings — typically at least 5 per cent of the loan amount held in your account for three months or more. This proves to the lender that you can manage your money and save consistently.

Sources that usually count as genuine savings include regular savings accumulated over time, term deposits, shares held for at least three months, and gifts from family (with a statutory declaration). Rental payments shown on a rental ledger may also be accepted by some lenders as evidence of savings capacity.

Do not forget the additional costs

Your deposit is not your only upfront expense. Budget an additional 3 to 5 per cent for costs including stamp duty (unless you qualify for the first home buyer exemption), conveyancing or solicitor fees, building and pest inspections, loan application fees, insurance, and moving costs.

For a $500,000 purchase, this means setting aside roughly $15,000 to $25,000 on top of your deposit. Read our comprehensive first home buyer guide for Perth for the full picture on costs, grants, and the buying process.

Frequently asked questions