First Home Sooner? How Australia’s 5% Deposit Scheme Can Help Perth Buyers in 2026

There is encouraging news for Perth residents trying to enter the property market. Current guidance from Real Estate Institute of Western Australia highlights how the expanded Australian Government 5% Deposit Scheme can allow eligible first-home buyers to purchase with a deposit as low as 5% without paying Lenders Mortgage Insurance (LMI).

For Perth buyers, the current property price cap is $850,000, while the cap across regional Western Australia is $600,000. The scheme can cover eligible established homes, new homes, apartments, townhouses, house-and-land packages and vacant land accompanied by a building contract.

The expanded scheme has no income caps or waitlists for eligible first-home buyers. The Australian Government provides a guarantee to the participating lender for part of the loan; it is not a cash grant to the buyer. Applicants still need to qualify for a home loan and demonstrate that repayments are affordable.

The potential difference in the deposit hurdle can be substantial. On an $800,000 property, for example, 5% is $40,000, compared with $160,000 for a 20% deposit. This does not mean $40,000 will necessarily cover every upfront cost, and some borrowers may need a larger deposit depending on their circumstances and lender requirements.

For prospective Perth first-home buyers, the important step is to understand the numbers before choosing a property. Your borrowing capacity, existing debts, living expenses, deposit, lender criteria and other purchasing costs can all affect what is achievable.

Naga Mortgage Brokers can help you check your potential eligibility, understand your borrowing capacity and compare suitable options from participating lenders.

General information only. Eligibility, property price caps and lender criteria apply. Fees and charges may apply.