Dreaming of homeownership in Perth but struggling to save a large deposit? You’re not alone. With Perth’s property market experiencing significant growth, many first-time buyers and young families find it challenging to save the traditional 20% deposit while keeping up with rising property prices.
Fortunately, there are several pathways to homeownership with a smaller upfront investment. Here’s how you can secure a home loan with a low deposit in Perth’s competitive market.
Understanding Low Deposit Home Loans
A low deposit home loan allows you to purchase property with less than the standard 20% deposit. Typically, lenders in Perth will consider loans with deposits as low as 2% of the property’s value, though this comes with certain conditions and additional costs.
Government Support Programs for Perth Buyers
First Home Owners Grant (FHOG)
The Western Australian First Home Owner Grant offers $10,000 to eligible first-time buyers building a new home. This grant can significantly boost your deposit savings, especially when combined with other support measures.
Learn more about First Home Owner Grant >
Family Home Guarantee (FHG)
The Family Home Guarantee is a federal government initiative designed to help single parents purchase a home with as little as a 2% deposit, without needing to pay Lenders Mortgage Insurance (LMI). This scheme is open to both first-home buyers and previous homeowners who do not currently own a property.
The Perth property price cap under this scheme is $600,000 (as of April 2025). With Perth’s rising housing costs, this initiative provides a valuable opportunity for single parents looking to secure a stable home for their families with a minimal deposit.
Learn more about the Family Home Guarantee >
First Home Loan Deposit Scheme (FHLDS)
The First Home Loan Deposit Scheme (now part of the Home Guarantee Scheme) allows eligible first-home buyers to purchase property with as little as 5% deposit without paying Lenders Mortgage Insurance (LMI). The federal government guarantees up to 15% of the property value, effectively giving lenders the security they need. Perth has specific property price caps under this scheme, currently set at $600,000 (As of 1st of April 2025)
Learn more about First Home Loan Deposit Scheme>
Keystart Home Loans
Keystart is a WA government initiative specifically designed to help Western Australians who can’t meet the deposit requirements of mainstream lenders. For Perth metropolitan areas, Keystart offers loans with deposits as low as:
- 2% for first home buyers
- 10% for non-first home buyers
- 2% for Aboriginal borrowers through the Aboriginal Home Ownership Scheme
Income limits apply, but these were recently increased to help more Perth residents qualify.
Guarantor Options
Many Perth lenders offer Family Guarantee Options (sometimes called “family pledge” loans) where a family member can use equity in their property to help secure your loan. Bankwest, headquartered in Perth, and other major banks operating in WA offer variations of this option.
Learn more about Guarantor Home Loans>
Tips for Improving Your Low Deposit Loan Application
- Demonstrate strong savings history: Mortgage advisors suggest showing a minimum three-month history of regular savings.
- Reduce existing debts: Pay down credit cards and personal loans before applying.
- Maintain stable employment: Lenders prefer borrowers with at least 6-12 months in their current job.
- Clean up your credit report: Check your credit report through MoneySmart and address any issues.
- Avoid Buy Now, Pay Later (BNPL) Services: Lenders view BNPL transactions as ongoing liabilities, even if they’re interest-free. Regular BNPL use can lower your borrowing capacity.
Consult a Professional
With careful planning, government support, and knowledge of Perth’s property market, homeownership may be more accessible than you think. The key is understanding all available options and finding the right fit for your financial circumstances and property goals.
If you’re considering building your dream home with a low deposit, Emily Rose Homes offers flexible building options that can work alongside financial brokers who specialises in these low deposit financing solutions. Contact our team to discuss how we can help make your Perth homeownership dreams a reality.
Disclaimer: Information current as of April 2025. Terms, conditions, and eligibility criteria are subject to change.
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