Last checked: October 2026
Saving a 20% deposit while paying Perth rent is tough. The good news is you don’t need 20% to build your first home. There are several government-backed ways to get in with a 2% to 5% deposit, and in many cases without paying lender’s mortgage insurance (LMI). Here’s a plain-English rundown of each option.
Option 1: The 5% Deposit Scheme
The Australian Government’s 5% Deposit Scheme lets eligible buyers purchase with a 5% deposit and no LMI. The government guarantees part of your loan, so the lender doesn’t need you to pay mortgage insurance.
If you’ve heard of the “First Home Loan Deposit Scheme”, “New Home Guarantee” or “Home Guarantee Scheme”, this is the same program under its current name.
- Deposit: 5% (2% for eligible single parents)
- Income caps: none
- Places: unlimited
- Property price cap in WA: $850,000 in Perth and regional centres, $600,000 elsewhere
- Works for building: yes, including house and land packages and vacant land with a building contract
- Who can use it: Australian citizens and permanent residents who haven’t owned a home or land in Australia in the last 10 years
Official details: firsthomebuyers.gov.au
Option 2: Keystart Low Deposit Home Loan
Keystart is the WA Government’s home lender. Its Low Deposit Home Loan needs just a 2% deposit with no LMI.
- Property price limit: $860,000
- Income limits: $155,000 for singles, $228,000 for couples and families
- Who can use it: first home buyers, and previous owners who don’t currently own any home or land
Read our full Keystart guide for Perth buyers.
Option 3: Shared equity
With shared equity, a government partner owns part of your home, so you borrow less and need a smaller deposit. You can usually buy back their share over time.
Help to Buy (Australian Government)
- Deposit: 2%
- Government share: up to 40% for new homes, up to 30% for existing homes
- Income caps: $103,000 for singles, $165,000 for couples and single parents (indexed each year)
- Property price cap in WA: $850,000 in Perth and regional centres, $600,000 elsewhere
Help to Buy can’t be combined with other government shared equity schemes or state-backed loans like Keystart, but you can still get grants and stamp duty concessions.
Keystart shared equity loans
Keystart also offers shared equity through its Shared Ownership Home Loan (price limit $720,000) and Urban Connect Shared Equity Home Loan (price limit $800,000, mainly for new apartments, townhouses and homes on smaller lots). Income limits for both are $128,000 for singles and $197,000 for couples and families.
Low deposit options at a glance
| Option | Minimum deposit | Perth price cap | Income cap |
|---|---|---|---|
| 5% Deposit Scheme | 5% | $850,000 | None |
| Keystart Low Deposit | 2% | $860,000 | $155,000 single / $228,000 couple |
| Help to Buy | 2% | $850,000 | $103,000 single / $165,000 couple |
Don’t forget grants and stamp duty savings
Whichever loan you use, building a new home in WA can unlock extra savings:
- First Home Owner Grant: $10,000 towards a new home valued up to $800,000 in Perth and the south of the state.
- Stamp duty: eligible first home buyers pay no transfer duty on homes up to $600,000 (reduced rate up to $800,000), and no duty on vacant land up to $450,000 (reduced rate up to $550,000).
- Building helps here: when you buy land and build under separate contracts, duty is generally charged on the land only, which often means little or no stamp duty at all.
Which option is right for you?
It comes down to your income, how much you’ve saved, and the home you want to build. Someone earning above Keystart’s limits might use the 5% Deposit Scheme. Someone with a smaller deposit might be better suited to Keystart or Help to Buy. The best way to find out is a quick chat with a finance specialist who can compare them side by side.
How First Homes Perth can help
We help Perth renters work out which low deposit pathway suits them, connect them with finance specialists, and find house and land packages that fit within the scheme limits. Our homes are built by Home Group with a 12 month price hold and a 30-year structural guarantee.
Low deposit FAQs
What is the lowest deposit I can buy a home with in Perth?
Through Keystart or the Help to Buy shared equity scheme, eligible buyers can purchase with a 2% deposit.
Is the New Home Loan Deposit Scheme still available?
Yes, under a new name. It’s now called the 5% Deposit Scheme, and since October 2025 it has no income caps and no limit on places.
Can I use the 5% Deposit Scheme to build a house?
Yes. House and land packages and vacant land with a building contract are both eligible, as long as the total price is under the cap.
What is shared equity?
A government partner owns a share of your home, so you need a smaller loan and deposit. You can buy their share back over time as your finances allow.
Can I still get the First Home Owner Grant with a low deposit loan?
Yes. The grant and stamp duty concessions are separate from your loan, so you can generally use them with any of these options if you’re eligible.
This guide is general information only and isn’t financial or credit advice. First Homes Perth is not a lender. Scheme rules, limits and rates change, so confirm the details with the scheme, your lender or a qualified finance professional before making a decision.