If you’re looking at how much you need for a home deposit in Perth, then we’re here to be the bearers of good news: because deposits actually start at 0%! And we’ve broken down all the home loan eligibility details and deposit options—so you can feel nice and prepared when you close this tab. So, grab yourself a coffee and maybe a lil’ sweet treat (it’s justified, you’re being productive!), and we’ll dive in.

What is a house deposit?

A house deposit (or home loan deposit) is your first contribution to the price of a property—the first step in your home ownership journey. You’re buying a small part of that home and then paying the rest back, giving you that essential entry ticket into the property market. 

The size of your home deposit depends on the price of the house you’re building or buying, and how much money you’re able to borrow. If you have the financial capacity for a bigger home deposit, then you may pay less interest—AKA weekly or fortnightly repayments (like rent, but the homeowner’s edition). 

Traditionally, you’re advised to save up for a 20% deposit, but this level of savings for a house deposit has become less of a non-negotiable since the introduction of government-funded initiatives offering low deposit home loans.

Are you eligible for a home loan?

Unfortunately, it doesn’t matter what the minimum deposit for a home loan is if you’re not eligible! So, let’s figure that out first. With so many factors influencing loan eligibility, we recommend speaking with a broker, bank, or finance expert from the get-go (we actually know some great ones and can put you in touch!). 

When you have a chat with one of these finance masterminds, they’ll ask you a bunch of questions and pop your responses into a fancy mortgage calculator to work out the home loan amount you’re eligible for. These home loan eligibility questions can cover your:

How much of a home loan deposit do you need for a house in Perth?

To figure out how much is needed for a home deposit, your mortgage broker or bank will need to assess your finances to see how much you will be able to borrow. This depends on several factors, including your income and expenses, savings, credit rating, the price of the property, the type and length of the loan, and whether you’re eligible for any government-funded support grants. As you can see, there’s no one-size-fits-all answer to this one, it’s *nuanced*.

Low deposit loan options

0% deposit: The one backed by Mum and Dad.

With the BOMD (Bank of Mum and Dad) behind you as guarantors, you can borrow up to 100% of your home loan with a deposit of 0%. 

2% deposit: The one backed by the WA Government. 

A nice bonus for WA locals, so you can get into your own home, pronto.

• Keystart Home Loans only require a deposit of 2% and offer low entry costs and no Lenders Mortgage Insurance (LMI). 
• If you’re a first home buyer considering building a new home, you may be eligible for the State Government’s $10,000 First Home Owner Grant (FHOG), which can be used as your deposit via Keystart.
• The Family Home Guarantee is available for single parents and legal guardians supporting a family. This deal allows single parents and guardians to borrow up to 98% of the property value (that’s a 2% deposit) with no LMI.

The one backed by the bank.

If the other low deposit home loans don’t work for you, the good news is that several banks (including CommBank, Westpac, NAB, and Bendigo Bank) let you borrow up to 95% of your home loan. The criteria are a bit stricter though and you’ll need to meet the LMI requirements.

There is one way to skip the LMI—the First Home Buyers Guarantee is a scheme offering first home buyers the chance to buy a home with a 5% deposit and no LMI. There are some eligibility criteria though: the income limits are $125K if you’re single and a combined $200k for couples, and the property price caps are $600K for WA metro and $450K for the rest of the state. 

Most lenders (including the big four banks) will accept a minimum deposit for a house of 5%, if you pay LMI. So, you would only need a minimum deposit of $30,000 to buy a $600,000 home, and you would be borrowing $570,000 from the bank.

How much money do you need to purchase a home?

All of these low deposit home loans have probably got you really excited, but how do you know which option is best for your situation? How can you feel secure with this huge financial decision? 

Basically, you’ll need to review your situation with a financial advisor, mortgage broker, bank, or new homes consultant. Also, calculate how much you can pay once costs like stamp duty and Lenders Mortgage Insurance (LMI) are added. Most major banks will also have home loan calculators you can use for a quick answer. 

What if I can’t afford a home deposit?

 If you’re wondering whether you’ll be able to afford a home deposit, you’re not alone—everyone’s feeling the cost-of-living pinch right now. But you might still have the opportunity to buy your own home, even if you don’t have a huge deposit ready to go.

Is saving for a 20% deposit still recommended?

The traditional home-buying plan involved slowly building savings for a house deposit, until you reached 20% of your dream home’s purchase price. But this might not be the most practical idea anymore. Australia has seen year-on-year growth, with a 1.4% rise in 2023 – 2024%, and the value of many homes has increased hundreds of thousands of dollars—with no sign that this trend is slowing down. 

Imagine you’ve pinpointed your ideal kind of house (or house and land package) but then decide to wait until you have a 20% deposit. This might take you years, and then after all that time scrimping and saving, you’ll probably find that the type of house you were looking at is now much more expensive. Plus, because the market will have moved, the amount you saved might not be worth 20% anymore and you may still need to pay Lenders Mortgage Insurance (LMI).

Keystart Home Loans

As we mentioned earlier, Keystart Homes Loans are the ones with those awesome 2% deposits and no LMI. A Keystart Home Loan means: 

Finance with La Vida

With all the financial stress on our generation right now, trying to follow the traditional path may just take away your enjoyment of life. Your path might involve guarantors, government grants, or handy schemes. The point is, it’s all okay. If you’ve made it this far you definitely deserve a proper bev to replace that coffee. And after you’ve had time to digest all this info, you can check out our more in-depth home loan insights or just get in touch and our team will explain anything you need. It’s time to make your mark.