Low deposit home loans in Perth
The deposit, not the rate, is what stops most Perth buyers. With as little as 5% there is more than one way in, and some of them skip Lenders Mortgage Insurance entirely.
Last updated 14 June 2026
A low deposit home loan lets you buy or build in Perth with less than the standard 20% deposit, sometimes as little as 5%. The Property Plug arranges low-deposit lending through the First Home Guarantee, Keystart, guarantor loans and standard LMI loans across WA. It is free to you and general information, not credit advice.
Five ways into a low-deposit loan
| Pathway | Deposit | LMI | Best for |
|---|---|---|---|
| First Home Guarantee | 5% | None | Eligible first home buyers |
| Keystart | Low, within caps | None | Eligible WA buyers |
| Guarantor loan | Equity based | None | Buyers with family support |
| Standard LMI loan | 5% to 15% | Capitalised | Buyers outside the schemes |
| 20% deposit | 20% | None | Savers wanting the lowest cost |
Eligibility and caps apply. Figures reflect 2025-26 WA settings. Last updated 14 June 2026.
When LMI applies and what it costs
Lenders Mortgage Insurance protects the lender, not you, when your deposit is under 20%. It is usually a one-off premium added to the loan, and it climbs as your deposit shrinks. On a $600,000 purchase the premium might be around $10,800 at 90% and roughly $21,700 at 95%. A scheme or guarantor can remove it entirely.
See exactly where your deposit sits and what LMI might cost in the deposit and LMI calculator.
Wait and save, or get in now
A low deposit is rarely free, so the honest question is whether the cost of LMI is less than the cost of waiting while prices and rent move. That is a numbers call, not a slogan. Here is how we frame it.
- The cost of LMI is a known, one-off premium you can calculate today.
- The cost of waiting is uncertain, but in a rising market it can outpace the premium quickly.
- A scheme or guarantor can remove LMI, tilting the decision toward buying sooner.
- Building new lowers the cash to start through land-only duty and the $10,000 grant.
Why a build suits a small deposit
If you are short on deposit, building can be the easier route in. Transfer duty is generally assessed on the land alone when the building contract is separate, the $10,000 First Home Owner Grant applies to new builds, and a construction loan charges interest only on the funds drawn during the build. We pair the right design and block with a low-deposit loan so the whole thing fits your savings.
This is general information only and does not take into account your objectives, financial situation or needs. It is not credit assistance or a credit quote. Consider whether it is right for you and seek advice. Finance is arranged through Central Lending Solutions, the licensed credit partner The Property Plug works with (Australian Credit Licence or credit representative number [TBC]).
Can I buy or build in Perth with a 5% deposit?
Yes, for many buyers. The First Home Guarantee lets eligible first home buyers in with 5% and no LMI. Keystart offers low-deposit WA lending with no LMI within its caps. Other lenders go to 95% with LMI capitalised onto the loan. The right path depends on your eligibility and the numbers.
What is the catch with a low deposit?
With less than 20% down you usually pay Lenders Mortgage Insurance unless a scheme or guarantor covers it, and you borrow more so your repayments and total interest are higher. The trade-off is getting in sooner, before prices and rent move further. We weigh the cost of waiting against the cost of LMI for you.
How does a guarantor loan work?
A family member, usually a parent, offers equity in their own property as additional security. That lifts your effective deposit over the 20% line so no LMI is charged, without them giving you cash. Their liability is usually limited to a set portion and can be released once you build enough equity.
Is a low deposit better for buying land or building?
Building can suit a low deposit well. Duty is generally assessed on the land alone when the building contract is separate, the $10,000 grant applies to new builds, and a construction loan charges interest only on drawn funds during the build, all of which ease the cash needed to start.
Will a low deposit reduce how much I can borrow?
Not directly, but it raises the loan you need, and lenders cap the loan-to-value ratio they will accept. The bigger driver of how much you can borrow is your serviceability. Run both the deposit and LMI and borrowing power calculators to see your full position.
See how little you need to start
Book a free call. We check whether a scheme, a guarantor or a build gets you in for the least, then line up the lender.