How Much Deposit Do You Need to Buy a House in Perth in 2026?
Most Perth home buyers need a minimum 5% deposit, but 20% avoids Lenders Mortgage Insurance (LMI). First home buyers may qualify for government schemes that let you buy with as little as 2–5% deposit and no LMI. Read on for the full breakdown.
If you’re trying to buy a home in Perth in 2026, one of the first questions you’ll ask is: how much money do I actually need saved before I can get started?
The short answer is: it depends on your situation. The longer answer — which is what this guide is about – involves deposit size, Lenders Mortgage Insurance, government grants, and a few other costs that most people don’t factor in until it’s too late.
Let’s break it all down.
The Minimum Deposit to Buy a House in Perth
In Australia, the minimum deposit most lenders will accept is 5% of the purchase price. So for a $600,000 home in Perth, that’s $30,000 saved.
However, there’s a catch – if your deposit is less than 20%, you’ll almost certainly need to pay Lenders Mortgage Insurance (LMI). This is an insurance policy that protects the lender (not you) in case you default on the loan. Depending on your loan size and deposit, LMI can add anywhere from $5,000 to $30,000+ to your costs. It can usually be added onto your loan, but it increases your repayments.
Here’s a quick breakdown for Perth property prices:
What Is Lenders Mortgage Insurance (LMI) and Can You Avoid It?
| Purchase Price | 5% Deposit | 10% Deposit | 20% Deposit (no LMI) |
|---|---|---|---|
| $500,000 | $25,000 | $50,000 | $100,000 |
| $600,000 | $30,000 | $60,000 | $120,000 |
| $750,000 | $37,500 | $75,000 | $150,000 |
| $900,000 | $45,000 | $90,000 | $180,000 |
LMI is triggered whenever your deposit is less than 20% of the purchase price – meaning your loan-to-value ratio (LVR) is above 80%.
The good news is there are legitimate ways to avoid LMI even with a smaller deposit:
- First Home Guarantee (Federal Government): The Australian Government’s First Home Guarantee allows eligible first home buyers to purchase with just a 5% deposit and no LMI. The government guarantees up to 15% of the loan, eliminating the need for LMI entirely. In 2026, 35,000 places are available each financial year.
- Western Australia Regional First Home Buyer Guarantee: A similar scheme specifically for buyers purchasing in regional WA, also allowing 5% deposit with no LMI.
- Family Guarantee: If a parent or close family member owns property, they may be able to use their equity as additional security for your loan – allowing you to borrow with a smaller deposit and avoid LMI entirely. This is sometimes called a guarantor loan.
- Some Lenders Waive LMI for Certain Professions: Doctors, lawyers, accountants, and some other professionals can qualify for LMI waivers with specific lenders even with deposits as low as 10%. Worth asking your mortgage broker about.
The First Home Owner Grant (FHOG) in WA - Does It Count as Your Deposit?
The First Home Owner Grant in Western Australia is a one-off $10,000 cash payment from the state government for eligible first home buyers purchasing or building a new home valued under $750,000.
Here’s the important thing most people get wrong: the FHOG does not count as your deposit with most lenders. You typically need to have genuine savings of at least 5% before the grant is considered. However, the $10,000 can go toward your overall costs – stamp duty, legal fees, moving costs — which frees up more of your savings for the deposit itself.
To qualify for the FHOG in WA you must:
- Be an Australian citizen or permanent resident.
- Be purchasing or building a new home (not an established property).
- Have never previously owned residential property in Australia.
- Intend to live in the home as your principal place of residence for at least 6 continuous months.
Don't Forget These Extra Costs
This is where a lot of first home buyers get caught out. Your deposit is not the only money you need. Budget for these on top:
- Stamp Duty In Western Australia, stamp duty is calculated on the purchase price. First home buyers purchasing an established home valued under $500,000 pay no stamp duty. Between $500,001 and $750,000 a concessional rate applies. Over $750,000, full stamp duty applies. Use the WA State Revenue Office stamp duty calculator for an exact figure.
- Conveyancing / Legal Fees Budget $1,500–$2,500 for a settlement agent or conveyancer to handle the legal transfer of the property.
- Building and Pest Inspection For established homes, always get one. Costs around $400–$600 in Perth and can save you from a very expensive mistake.
- Mortgage Registration and Transfer Fees Small government fees in WA, typically $200–$500 combined.
- Moving Costs Easy to forget. Budget $500–$2,000 depending on how much you’re moving and how far.
- Lenders Mortgage Insurance (if applicable) As covered above — can be $5,000–$30,000+ depending on your deposit size and loan amount.
- As a general rule, budget an extra 3–5% of the purchase price on top of your deposit to cover all purchase costs.
How Much Deposit Do You Really Need in Perth in 2026?
Here’s a realistic summary based on your situation:
- If you’re a first home buyer purchasing a new home: You may qualify for the First Home Guarantee (5% deposit, no LMI) plus the $10,000 FHOG. On a $550,000 new build, you’d need approximately $27,500 deposit plus $15,000–$20,000 for purchase costs. Total cash needed: around $40,000–$50,000.
- If you’re a first home buyer purchasing an established home: You’ll need a minimum 5% deposit. On a $600,000 established home, budget $30,000 deposit + LMI (if under 20%) + $20,000 purchase costs. Total cash needed: around $50,000–$60,000 depending on LMI.
- If you’re an existing homeowner or investor: A 20% deposit avoids LMI and gives you access to the best interest rates. Some lenders will consider equity in an existing property as part of your deposit.
How a Perth Mortgage Broker Can Help
The deposit question is just the starting point. How much you can borrow, which lender suits your situation, whether you qualify for government schemes, and how to structure your loan – these are all questions where getting expert advice upfront saves you thousands.
At Mogul Capital & Finance, we’re MFAA-accredited mortgage brokers based in Landsdale, Perth. We work with a panel of 25+ lenders and help first home buyers, investors, self-employed borrowers and SMSF clients find the right loan – at no cost to you.
Book a free 20-minute chat we'll tell you exactly where you stand, what you qualify for.
and what your next step should be.
Buying a House in Perth
Deposit Questions Answered For You
Can I buy a house in Perth with a 5% deposit?
Yes. Most lenders in Australia will accept a minimum 5% deposit. However if your deposit is less than 20% you will likely need to pay Lenders Mortgage Insurance (LMI). First home buyers may be able to avoid LMI entirely through the federal government’s First Home Guarantee scheme, which allows eligible buyers to purchase with just 5% deposit and no LMI.
Can I use the First Home Owner Grant as my deposit?
No. The $10,000 First Home Owner Grant in WA is paid at settlement — not upfront — so most lenders will not accept it as part of your genuine savings deposit. You still need to have at least 5% saved independently. However the grant can be used to cover other purchase costs like conveyancing fees and moving expenses.
What is LMI and how much does it cost in Perth?
Lenders Mortgage Insurance (LMI) is an insurance policy that protects the lender if you default on your loan. It is triggered when your deposit is less than 20% of the purchase price. In Perth, LMI costs typically range from $5,000 to $30,000+ depending on your loan size and deposit amount. It can usually be added onto your home loan rather than paid upfront.
How long does it take to save a house deposit in Perth?
It depends on your income, expenses and savings rate. On a median Perth property price of around $750,000, a 5% deposit is $37,500 and a 20% deposit is $150,000. Most first home buyers saving aggressively can reach a 5% deposit within 1–3 years. A mortgage broker can help you work out the fastest path to your deposit goal including government schemes that reduce how much you need to save.
What is the fastest way to get into a home in Perth with a small deposit?
The fastest path for most Perth first home buyers is combining the First Home Guarantee (5% deposit, no LMI) with the $10,000 First Home Owner Grant on a new build. This minimises how much you need saved while maximising government assistance. Talk to a Perth mortgage broker to confirm your eligibility for both schemes before you start house hunting.
Do I need genuine savings for a home loan in Perth?
Yes. Most lenders require you to demonstrate genuine savings — money you have saved yourself over at least 3 months. Gifts from parents, the FHOG, and lump sum windfalls typically don’t count as genuine savings on their own, though some lenders have more flexible policies. A mortgage broker can match you with a lender whose genuine savings policy suits your situation.
Mogul Capital & Finance | MFAA Accredited Mortgage Brokers | Landsdale, Perth WA | ABN 35 767 467 002
*This article is general information only and does not constitute financial advice. Please consult a licensed mortgage broker or financial adviser for advice specific to your situation.