How Much Deposit Do I Really Need to Buy in Perth?
A realistic breakdown of deposit requirements for Perth home buyers in 2026, including low-deposit options, LMI, and the Home Guarantee Scheme.
The 20% deposit rule is not a rule. It’s a rule of thumb — and a very old one. The reality for Perth buyers in 2026 is much more flexible. Here’s the full picture.
The three “deposits” you actually need
- Deposit for the bank — their minimum, often 5–20% of purchase price
- Deposit at contract — usually 10% of purchase price (paid to the seller’s agent, counts toward your deposit)
- Cash for costs — stamp duty, legal, lender fees, moving
On a $600,000 Perth home, that could look like:
| Item | 5% deposit path | 20% deposit path |
|---|---|---|
| Deposit | $30,000 | $120,000 |
| Stamp duty (FHB eligible) | ~$0 | ~$0 |
| Legal/settlement | ~$2,500 | ~$2,500 |
| LMI | ~$12,000 | $0 |
| Total cash needed | ~$32,500 (LMI capitalised) | ~$122,500 |
Low-deposit options in 2026
- Home Guarantee Scheme (HGS) — 5% deposit, no LMI. Government guarantees the other 15%. Places are limited each financial year.
- Family Home Guarantee — 2% deposit for eligible single parents
- Regional First Home Buyer Guarantee — 5% deposit for regional buyers
- Guarantor loan — a family member uses their equity to secure part of your loan, letting you avoid LMI with a small deposit
Is LMI actually bad?
Not always. Lenders Mortgage Insurance protects the bank if you default — but the cost is real, typically $8,000–$20,000. However:
- Waiting to save the full 20% in a rising market can cost you more than LMI
- LMI is usually capitalised into the loan — you don’t pay upfront
- On investment properties, LMI is tax deductible over 5 years
What we actually recommend
The cheapest path depends on three things: your timeline, the market trajectory, and whether you qualify for the HGS. We model all three scenarios for every first home buyer — no jargon, just real numbers side by side.
Talk to us about your deposit →
This article is general information only. Figures are illustrative examples and do not reflect your individual circumstances. Consider whether the information is appropriate for you and seek professional advice before acting on it.