5% Deposit Scheme in Perth
Buy your first home with a 5% deposit
The Australian Government 5% Deposit Scheme lets eligible first home buyers purchase with a 5% deposit and no lenders mortgage insurance, with no income cap. We check whether you qualify, compare it with your other options and apply with you through a participating lender.
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What is the 5% Deposit Scheme?
The 5% Deposit Scheme is a federal program where the Australian Government guarantees part of your home loan, so a participating lender can lend to you with a 5% deposit without charging lenders mortgage insurance.
You might know it by an older name. Until 1 October 2025 it was the Home Guarantee Scheme, and the first home buyer part was called the First Home Guarantee. People still search for both names, and they point to the same thing.
The scheme is run by Housing Australia, a federal government agency. You apply as part of a home loan with one of its participating lenders, never directly, and the lender checks both the scheme rules and its own credit criteria.
The changes from 1 October 2025 made it much easier to use. Income caps were removed, the property price caps went up, and the limit on the number of places was scrapped, so there's no waiting list or race for spots.
It's a guarantee, not a grant. No money is paid to you, and you still repay the full loan plus your own upfront costs such as stamp duty and legal fees.
Who qualifies for the scheme?
You can use the 5% Deposit Scheme as a first home buyer if you're an Australian citizen or permanent resident aged 18 or over, buying a home to live in, priced at or under the local cap.
- You're 18 or over and an Australian citizen or permanent resident
- You're a first home buyer, or you haven't owned property or land in Australia in the last 10 years
- You've saved at least 5% of the home's value, and less than 20%
- You'll live in the home yourself, moving in within six months of settlement
- The price is at or under the price cap for the area
- You apply alone or with one other person, such as a partner, friend or family member
- You take an owner occupier loan with principal and interest repayments, for up to 30 years
There's no income test. A high income doesn't rule you out, which is a big change for young professionals and FIFO workers who used to sit over the old caps.
The deposit is measured against the home's value as your lender assesses it, which can differ from the price you agree to pay. If you have 20% or more saved after your purchase costs, the loan isn't eligible. The rules also say you should put as much of your savings towards the deposit as you can, in line with your lender's policy.
Single parents and single legal guardians can use the scheme with a 2% deposit. That part works a little differently, so it has its own page: Family Home Guarantee.
5% Deposit Scheme price caps in WA
In Western Australia, the home you buy under the scheme must be priced at or under $850,000 in Perth, or $600,000 in the rest of the state.
Source: firsthomebuyers.gov.au (Housing Australia), checked 30 October 2026.
Housing Australia sets a higher cap for capital cities and named regional centres, but it lists no regional centres in WA, so the higher cap applies to Perth only. Caps can change, so we confirm the cap for your suburb before you sign.
Both the purchase price and the lender's valuation need to come in at or under the cap. You can buy a new or established house, townhouse or apartment, a house and land package, an off the plan home, or vacant land with a building contract. If you're building with separate contracts, the land and the build together need to fit under the cap.
Most of the suburbs our clients buy in, like Baldivis, Ellenbrook, Wellard, Alkimos and Rockingham, sit within Perth. Some suburbs have more than one postcode, and that can change which cap applies, so we check the exact address with Housing Australia's postcode search tool.
How the guarantee removes LMI
Because the government guarantees up to 15% of the property's value to your lender, the lender carries less risk and doesn't need you to pay lenders mortgage insurance.
The lender is covered
Normally a lender asks for lenders mortgage insurance when you borrow more than 80% of a home's value. Here the guarantee does that job instead, at no cost to you.
More of your money stays yours
Without LMI, your savings can go towards the deposit and your upfront costs. There are no fees to use the scheme itself, though normal loan costs still apply.
You live in the home
The guarantee stays in place while you live in the home. If you move out or rent it out while it's active, your lender may ask you to pay LMI or other costs.
Applications go through participating lenders. Housing Australia has authorised more than 30 of them, from the major banks to smaller customer owned banks. Many work with brokers, and we'll tell you which participating lenders on our panel could suit you, so you get the luxury of choice rather than one bank's offer.
5% Deposit Scheme or Keystart?
Keystart can get you in with a smaller deposit but has income and price limits, while the 5% Deposit Scheme needs more saved and has no income cap.
Both remove LMI. The main differences are the deposit, who sets the interest rate and whether your income fits Keystart's limits. With the 5% Deposit Scheme your rate comes from the lender you choose. Keystart sets its own. We lay the two side by side for your numbers, and our Keystart page has a full comparison table.
How we help with the 5% Deposit Scheme
We check whether you qualify, find a participating lender that suits you, then manage the application with you through to settlement.
Have a chat
Tell us about your savings, income and where you'd like to buy. No jargon, no obligation.
We check the fit
We confirm the price cap for your suburb, check the scheme rules and compare it with Keystart and standard loans.
Get pre-approved
We apply with a participating lender. Once pre-approved, you have 90 days to find a home and sign a contract.
Buy and settle
We hold the pressure points with the lender, check the valuation against the cap and keep you updated to settlement.
Rated five stars by the people we help
"As first home buyers, Lucy made the entire process simple, stress-free and easy to understand. Her communication, professionalism and genuine care were outstanding. We secured our dream first home in record time!"
"Friendly, knowledgeable and incredibly responsive throughout. She made everything feel easy and stress-free, and always took the time to patiently answer all of our questions. We felt supported every step of the way."
"Maddy has been exceptional helping us navigate getting our mortgage to build our home. Always super friendly and always has the time to answer any burning questions. Would highly recommend Maddy and Oui Finance to everyone!"
Frequently asked questions
Is the First Home Guarantee still available?
Yes, the First Home Guarantee is still available, but since 1 October 2025 it's called the Australian Government 5% Deposit Scheme.
The way it works is the same: a government guarantee lets you buy with a 5% deposit and no LMI. The older Regional First Home Buyer Guarantee closed to new applicants at the same time, and regional buyers now use the main scheme.
Is there an income limit for the 5% Deposit Scheme?
No, the 5% Deposit Scheme has had no income caps since 1 October 2025.
You still need to meet the lender's normal credit checks, including showing you can afford the repayments.
Can I use the scheme with a 10% deposit?
Yes, you can use the 5% Deposit Scheme with any deposit from 5% up to just under 20% of the home's value.
A bigger deposit means a smaller loan and lower repayments. Our deposit guide walks through what changes at each level.
Can I build a new home with the 5% Deposit Scheme?
Yes, you can use the scheme for a house and land package, an off the plan home or vacant land with a building contract, as long as the total cost fits under the cap.
Loans can run for up to 30 years, plus up to three years to build. Our house and land page explains how the finance works in stages.
Can a mortgage broker help with the 5% Deposit Scheme?
Yes, a mortgage broker can apply for the 5% Deposit Scheme for you with a participating lender that accepts broker applications.
Going through us means you can compare several participating lenders in one place, with someone on your side, not the bank's.
Find out if the 5% scheme suits you
A first chat with Oui Finance is complimentary, and we'll tell you plainly whether the 5% Deposit Scheme, Keystart or another option could get you into your first home sooner.
Send us a few details and one of our brokers will be in touch. You can also call us on 0448 383 336.
This page is general information only and does not take your personal circumstances into account. The Australian Government 5% Deposit Scheme is administered by Housing Australia, and its rules, price caps and participating lenders are set by the government and can change, so check the current details before you apply. Eligibility for the scheme does not mean a lender will approve your loan. Lender credit criteria, terms, conditions, fees and charges apply, and your full financial situation will be reviewed before any offer or product is accepted.