Most WA buyers need a deposit of 5% to 20% of the purchase price, but eligible first home buyers can get in with as little as 2% through Keystart or 5% through the federal First Home Guarantee.
Your deposit affects your interest rate, whether you pay Lenders Mortgage Insurance, and how much you can borrow. As your local Perth broker, we help you find the smallest safe deposit for your situation.
A 20% deposit (plus costs) is the benchmark because it lets you avoid Lenders Mortgage Insurance, a one-off cost that protects the lender, not you.
Below 20%, most lenders charge LMI, which can run into thousands. But waiting to save 20% in a rising market is not always the best move – sometimes buying sooner with a smaller deposit wins, because paying LMI once can be cheaper than years of rising prices locking you out. We run the numbers both ways so you can decide with facts, not fear.
The right deposit is the one that gets you into the market safely without overstretching. We compare the true cost of buying now with a smaller deposit against waiting to save more.
These options can dramatically cut the deposit you need, but each has its own eligibility and income rules. We check which you qualify for. If you are a first buyer, start with our guide to the First Home Owner Grant WA.
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After 10 years inside the Big Four banks, I saw how many Perth families missed money they were entitled to. The Finance Yogi exists to change that - we check every grant, concession and option, and explain it in plain English.
LMI is a one-off premium most lenders charge when your deposit is under 20%. It protects the lender if you default – it does not protect you. The smaller your deposit, the higher the premium.
Good to know: schemes like Keystart and the First Home Guarantee let eligible buyers skip LMI entirely with a low deposit. We also compare lenders, because LMI costs vary. Estimate repayments with our home loan repayment calculator.
Many lenders want to see genuine savings – a deposit you have built up over at least three months – to show you can manage repayments. Others accept gifts, grants or a solid rental history instead, which can open doors for buyers who have been renting rather than saving in a traditional account.
If your deposit is a gift from family, or made up of the First Home Owner Grant, we match you with lenders who accept it, and structure the application so the funds are clearly evidenced. See all your paths to a loan on our home loan broker Perth page.
Lenders look at where your deposit came from and whether you can service the loan. Getting your documents in order early makes pre-approval faster and your offer stronger when you find the right home.
Once your deposit and documents are ready, we arrange pre-approval so you can buy with confidence. For the complete path to your first home, read our complete first home buyer guide for WA, or browse our finance services.
Book a free, no-obligation chat and we will find the smallest safe deposit and the right lender for you.
Source: deposit and LMI guidance from ASIC MoneySmart, and low-deposit scheme details from Keystart. Figures are current at the time of writing – confirm before you apply.
