Big news for first home buyers in Perth! Starting 1 October 2025, the Australian Government is launching a major expansion of its low deposit support scheme, allowing all first home buyers to purchase a home with just a 5% deposit. This is a game-changing shift for anyone hoping to build their first home in WA.
The new changes mean no income caps, no place limits, and no Lenders Mortgage Insurance (LMI) to worry about, saving you thousands.
What’s the 5% Home Guarantee Scheme?
Officially known as the First Home Loan Deposit Scheme, this opportunity allows eligible First Home Buyers to build a home with a 5% deposit, while the government guarantees the remaining 15% to avoid LMI (Lenders Mortgage Insurance).
The update taking effect on 1 October 2025 includes major upgrades:
- No income caps – previously there were tight restrictions
- Unlimited places – no more missing out on a spot.
- Higher property price caps – Now up to $850k, previously only $600k.
- Wider lender access, including customer owned banks
What It Means If You’re Building
- You can use this for a house and land package
- You can build with only a 5% deposit
- $10,000 First Home Owners Grant to assist
- No stamp duty if land is under $350k, saving thousands
- You’ll still be able to structure your loan with support from the scheme
- It must be an owner-occupied residence (not an investment)
For the average Perth home buyer, this takes years off the deposit-saving timeline and tens of thousands off the upfront costs.
Real Example
- You only need a $30,000 deposit (that’s 5%)
- You could save $25,000–$35,000 in Lenders Mortgage Insurance
- Stil receive a $10,000 First Home Owners Grant to assist with deposit
- Build up to an $850k home and land package, no more $600k restriction
- You can earn any amount of income, no restrictions on income
- You’ll have access to a wider range of lenders, which will mean lower interest rate opportunities
That’s a massive difference in upfront cost, and it could bring your savings timeline forward by years.
How Emily Rose Homes Can Help
We don’t just help you build, we help you access every advantage available while advocating for you. Here’s what we do:
- Connect you with builders offering fixed-price, turnkey packages (required for the scheme)
- Partner you with finance brokers who understand low-deposit and guarantee-backed loans
- Help you find eligible blocks of land under property caps
- Guide you through the entire build journey, from finance to handover
And because we’re independent, we’re unbiased, our advice is tailored to what works best for you, not what works for a particular builder or lender.
Want to Build with Just a 5% Deposit?
If you’re planning to build in 2025, now’s the perfect time to start exploring your options. We’ll help you understand your finance, customise your home design, find that perfect piece of land, advocate for you throughout your build journey and you’ll enjoy an Exclusive Home Style & Colour Experience with an Interior Designer to remove some of the pre-start overwhelm. Let’s secure a build pathway together that works with your budget and wish list in mind.
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