How much deposit
do I really need?
Last updated 14 June 2026 · figures current as at June 2026, confirm with each authority.
A Western Australian first-home buyer in 2026 does not need a 20% deposit. The First Home Guarantee allows a 5% deposit with no LMI and no income cap, and Keystart allows a 2% deposit with no LMI, subject to income and property caps. On a $450,000 build that is about $22,500 at 5% or $9,000 at 2%, before the $10,000 grant is applied toward costs.
Your deposit options on a $450,000 build.
| Pathway | Deposit | On $450,000 | LMI | Caps | Note |
|---|---|---|---|---|---|
| Standard loan, no scheme | 20% | $90,000 | None at 20% | No income or property cap | Highest cash, full ownership |
| First Home Guarantee | 5% | $22,500 | None (guaranteed) | Perth price cap $850,000 | No income cap from 1 Oct 2025 |
| Keystart | 2% | $9,000 | None | Income + $860,000 price cap | Variable rate, refinance out later |
| Help to Buy (shared equity) | 2% | $9,000 | None | Income + price caps | Government holds an equity share |
Illustrative on a $450,000 price. Your figures depend on the actual price and scheme settings. Confirm current terms with Housing Australia, Keystart and RevenueWA.
The deposit and costs checklist.
- Work out a realistic target price for a new build, then check it against each scheme's caps.
- Add the upfront costs beyond the deposit: conveyancing, inspections, loan and connection fees.
- Subtract the $10,000 First Home Owner Grant, which can offset deposit or costs on a new build.
- Subtract your stamp duty saving (under the current rate, nil under $500,000 for a built home and an exemption to $350,000 on land).
- Choose a deposit pathway (5% First Home Guarantee, 2% Keystart, or shared equity) based on income and savings.
- Confirm your serviceability with a lender or our finance arm before you commit to a build.
A worked example on the lowest entry.
Our most affordable new-home design starts around $309,218 for the build. On a build under the current $500,000 nil-duty threshold a 2% Keystart deposit plus the $10,000 grant and nil stamp duty brings the genuine upfront cash to a fraction of a 20% deposit. The trade-off is Keystart's variable rate, which you refinance away from as equity grows.
| Item | Amount | Note |
|---|---|---|
| Design build price (from) | $309,218 | Most affordable panel design |
| Deposit at 2% (on ~$450,000) | ~$9,000 | Keystart, no LMI |
| First Home Owner Grant | +$10,000 | Offsets deposit and costs |
| Transfer duty | $0 | Nil under the current $500,000 threshold (built home) |
| Net upfront cash | Low, plus fees | Versus ~$90,000 at a 20% deposit |
Worked example for illustration only, not a quote or an offer of finance. 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]).
Every one of The Property Plug's 46 new-home designs sits under the scheme price caps, so a low-deposit pathway is available across the catalogue. Our finance arm assesses serviceability and the right deposit pathway alongside the build, so you know your number before you fall for a design. We are paid by the builder, never by you.
- Deposit and LMI calculator - model 20% vs 5% vs 2%.
- Borrowing power calculator - what you may borrow.
- First Home Guarantee - the 5% pathway.
- Keystart - the 2% pathway.
How much deposit do I need to build a first home in WA?
Less than the old 20% rule. In 2026 an eligible first-home buyer can build with a 5% deposit and no LMI through the First Home Guarantee, or a 2% deposit with no LMI through Keystart. On a $450,000 build, 5% is about $22,500 and 2% is about $9,000, before the $10,000 grant is applied. Confirm current terms with each authority.
What is the minimum deposit with no LMI?
Through Keystart the minimum is around 2% of the price with no Lenders Mortgage Insurance, subject to income and property-price caps. The First Home Guarantee sits at 5% with no LMI and no income cap. Both avoid the LMI that a standard 95% loan would normally charge.
Does the $10,000 grant count toward my deposit?
On a new build, the First Home Owner Grant can be applied toward your deposit or settlement costs, which lowers the cash you need to have saved. Because The Property Plug only sells new builds, the grant is available across the catalogue.
What costs do I need beyond the deposit?
Budget for conveyancing, building and pest considerations, loan establishment and connection fees, and a buffer for variations. Stamp duty is often nil for first-home buyers under the thresholds, which removes the single biggest line that catches buyers in other states.
Can I build with almost no savings?
A 2% Keystart deposit plus the $10,000 grant brings the entry point very low on an eligible build under the current $500,000 nil-duty threshold, but you still need genuine savings, a clean credit history and enough income to service the loan. Our finance arm can tell you quickly whether the numbers work.
Find out your real deposit
Tell us your savings, income and target suburb. We confirm the deposit you need, the scheme that fits, and the new builds in range. Free to you, no obligation.