- Speed vs savings: a 5% or 10% deposit could potentially help you buy in Perth sooner, while a 20% deposit generally avoids lender’s mortgage insurance (LMI)
- WA transfer duty counts: transfer duty and settlement costs usually need to be saved on top of your cash deposit
- Assistance is available: the federal 5% Deposit Scheme and WA’s Keystart home loans may help eligible buyers purchase with a smaller deposit.
Plenty of Perth renters have spent years saving for a deposit, only to find the finish line has moved again. Home values have climbed quickly across the city, and the deposit for a Perth property has grown with them. Your deposit size could affect how much you borrow, whether lender’s mortgage insurance (LMI) applies and which home loans may be available to you. This guide compares 5%, 10% and 20% deposits in Perth, plus the WA costs and schemes worth knowing about.
What Perth’s price growth means for your deposit
Perth’s strong price growth means the deposit for a Perth property is generally larger than it was a few years ago. Values have eased slightly since April, although they remain well above earlier levels.
Perth’s median dwelling value was $999,987 as at 31 August 2026 (correct at time of writing), according to Cotality’s Home Value Index. Houses sat at a median of $1,043,478, while units were lower at $733,223. Local medians vary too, with the Armadale, Mandurah and Rockingham SA3 regions recording median values between $880,064 and $901,396.
Values rose 15.6% over the year and 79.7% over five years, the strongest five-year result of any capital, which has pushed savings targets higher. Momentum has since cooled. Values fell 0.8% in August and 3.2% over the three months to August, and Cotality estimates Perth sales volumes are more than 20% below year-ago levels.
Perth deposit scenarios at 5%, 10% and 20%
On an $800,000 Perth property, a 5% deposit is $40,000, a 10% deposit is $80,000 and a 20% deposit is $160,000. A smaller deposit could potentially help you buy sooner, while a 20% deposit generally avoids LMI.
This example sits above Perth’s median unit value but below its median house value, giving a realistic price point for comparing different deposit sizes. The table below uses the general transfer duty rate. An eligible first home buyer purchasing at exactly $800,000 would pay $32,300 under the first home owner rate, which is $16 less. All figures are indicative only.
|
5% deposit |
10% deposit |
20% deposit |
|
|---|---|---|---|
|
Deposit |
$40,000 |
$80,000 |
$160,000 |
|
Loan amount |
$760,000 |
$720,000 |
$640,000 |
|
Loan-to-value ratio (LVR) |
95% |
90% |
80% |
|
LMI |
Generally applies unless eligible for the 5% Deposit Scheme |
Generally applies unless eligible for the 5% Deposit Scheme |
Generally not required |
|
Estimated transfer duty (general rate) |
$32,316 |
$32,316 |
$32,316 |
|
Deposit plus transfer duty |
$72,316 |
$112,316 |
$192,316 |
Source: Transfer duty estimated using RevenueWA general rates for an $800,000 purchase, correct at time of writing. Excludes LMI premiums, settlement fees and other purchase costs.
Buying with a 5% deposit in Perth means a bigger loan and higher repayments, and LMI could add to the cost without scheme support. Stepping up to a 10% deposit in Perth trims the loan to $720,000, although LMI generally still applies. A 20% deposit in Perth removes LMI in most cases, but saving an extra $120,000 can take years while values keep moving. Timing matters.
The duty bill can catch first home buyers off guard at this price.
“A lot of first home buyers expect the duty concession to do the heavy lifting, but once you’re looking at around $800,000 in Perth it barely changes the bill, so the cash needed at settlement can be much higher than they planned for,” said James Bartlett of Loan Market in Balcatta.
Additional WA upfront costs to consider
Transfer duty is usually the largest upfront cost after your deposit, and it generally needs to be paid at or before settlement. Settlement agent fees, valuations and building inspections add to the total.
Since 7 May 2026, eligible first home buyers pay no transfer duty on homes valued up to $600,000 under the first home owner rate of duty. A concessional rate applies between $600,001 and $800,000, although it tapers quickly. On an $800,000 home, duty comes to $32,300, $16 less than the general rate. The WA First Home Owner Grant of $10,000 is separate and generally applies to new homes only. Use the RevenueWA transfer duty calculator to check your figure.
Settlement, valuation and inspection costs in Perth
Smaller costs also need covering before settlement, and amounts vary by provider. Getting quotes early could help you budget. Common costs include:
- Settlement agent fees: WA buyers usually appoint a licensed settlement agent, who must give you a written quote of the maximum they will charge before you sign
- Valuation fees: your lender will generally value the property before approving the loan, and some lenders may charge for this
- Building and pest inspections: an independent report could potentially flag costly defects before you commit, particularly on older homes.
How to buy in Perth with a smaller deposit
Eligible buyers could potentially purchase in Perth with a deposit of 5% or less through the federal 5% Deposit Scheme or a Keystart home loan. Both could reduce how much deposit for a Perth home you need to save.
The Australian Government 5% Deposit Scheme, formerly the Home Guarantee Scheme, lets eligible first home buyers purchase with a 5% deposit without paying LMI. Eligible single parents and single legal guardians may be able to buy with a deposit as low as 2% through the Family Home Guarantee. Perth’s property price cap is $850,000, which covers the $800,000 example above. You’ll need to live in the home, and both the purchase price and the lender’s valuation must sit at or below the cap.
Keystart is a WA Government-owned lender offering low deposit home loans from 2% with no LMI, and purchase price limits of up to $860,000. Income limits apply, and interest rates can differ from mainstream lenders. Eligibility is assessed by Keystart, so it’s worth checking the current limits on its website before applying.
Using a family guarantee to buy in Perth
A family guarantee lets a parent or close relative use equity in their property as extra security for your loan, which could potentially help you avoid LMI with a small deposit, subject to lender eligibility. It isn’t risk-free. Your guarantor could become responsible for part of the debt if you can’t meet repayments, so independent legal advice is worth getting first.
Choosing between these pathways often depends on more than the deposit alone.
“Keystart, the 5% Deposit Scheme and a family guarantee each come with different rules around income, price and who carries the risk, so it’s worth comparing them side by side before you start making offers,” said Sue Vuong of Loan Market in Perth.
Ready to explore your home loan options in Perth?
Knowing how much deposit for a Perth home you need is only part of the picture. Transfer duty, settlement costs and scheme eligibility could all change the cash you need. Comparing Perth deposit scenarios early could help you set a realistic savings target.
Finding out the deposit for a Perth property you need is the first step toward getting the keys. A Loan Market broker can review your financial setup, explain WA schemes and help you find home loan options to suit your goals. To start planning your purchase, contact a Loan Market broker today.
Frequently asked questions
Is a 5% deposit enough for a home in Perth?
It could be, depending on the property and your eligibility. Eligible first home buyers could potentially use the 5% Deposit Scheme on homes priced up to $850,000 in Perth without paying LMI. Without scheme support, a 5% deposit in Perth would generally attract LMI, and you’ll still need savings for transfer duty and other upfront costs.
How much transfer duty do first home buyers pay in WA?
For agreements entered into from 7 May 2026, eligible first home buyers pay no transfer duty on homes valued up to $600,000. Between $600,001 and $800,000, duty is charged at $16.15 for every $100 above $600,000, and homes above $800,000 are assessed at the general rate. If you haven’t been pre-approved before settlement, duty is charged at the general rate and you can apply for a refund once approved.
Can I add LMI to my WA home loan?
Many lenders allow LMI to be added to your loan rather than paid upfront, subject to lender eligibility. This reduces the cash you need at settlement, although you’ll pay interest on the premium over the life of the loan. It also increases your loan balance, which could affect your repayments.
Can investors use the 5% Deposit Scheme to buy in Perth?
No. The scheme is designed for owner-occupiers, so you’ll need to live in the property. Investors, including east-coast buyers purchasing in Perth, generally need a larger deposit or could potentially use equity in an existing property, subject to lender eligibility.
Does the First Home Owner Grant apply to established homes in Perth?
Generally not. The $10,000 WA grant is designed for new homes, with a value cap of $800,000 across Perth. The first home owner rate of duty can apply to both new and established homes, provided the property falls within the value thresholds.
