Can I use the 5% Deposit Scheme in WA?
Yes. The 5% Deposit Scheme is open to eligible first home buyers right across WA. It lets you buy with a 5% deposit and no Lenders Mortgage Insurance, while the government guarantees the rest. The WA price caps are 850,000 dollars for Perth and 600,000 dollars for the rest of the state.
If you are a first home buyer in WA, the 5% deposit scheme is the best leg-up the government has given you in years. It lets eligible buyers purchase with a 5% deposit. You skip Lenders Mortgage Insurance entirely. And you get into a home years sooner than a 20% deposit would allow. Here is how it works in WA, who qualifies, and what the price caps let you buy from Perth to the Pilbara.
What is the 5% Deposit Scheme, and how does it work in WA?
Short answer: The 5% Deposit Scheme is an Australian Government program. It lets eligible first home buyers buy with as little as a 5% deposit and no Lenders Mortgage Insurance. Housing Australia guarantees up to 15% of the property value to your lender. So you can borrow up to 95% without the usual LMI cost.
Normally, buying with less than a 20% deposit means paying Lenders Mortgage Insurance.It protects the lender, and it can add many thousands of dollars to your loan. Under the 5% deposit scheme, Housing Australia steps in instead. It guarantees the gap between your deposit and 20%, up to 15% of the property value.That guarantee does the job LMI would have done. So you are not charged the insurance.
The guarantee protects the lender, not you. It is not a cash grant, and no money is paid to you. What it removes is the biggest barrier most first home buyers face: saving a full 20% deposit while rents keep climbing. With a 5% deposit scheme place, your 5% is enough to start.
The scheme was expanded on 1 October 2025. The old income limits were scrapped. The cap on places was removed. And the price caps were lifted to sit closer to real values.In plain terms, far more WA first home buyers can use it now than could a year ago.
Who is eligible for the 5% Deposit Scheme in WA?
Short answer: You need to be an Australian citizen or permanent resident, at least 18, buying your first home to live in. Your deposit must be at least 5% but less than 20% of the property value. You must not have owned property in Australia in the past 10 years. There are no income limits.
The eligibility criteria are straightforward. Most WA first home buyers will meet them:
- Residency: you, or both of you for a joint application, must be an Australian citizen or permanent resident.
- Age: you must be at least 18 years old.
- First home buyer: you have not owned property in Australia in the last 10 years. That covers homes and investments.
- Owner-occupier: you are buying a home to live in, not an investment. You move in within 6 months of settlement.
- Deposit: you have at least 5%, but less than 20%, of the property value.
You can apply on your own, or jointly with one other person. The joint applicant does not have to be a spouse.Two friends or family members can buy together, as long as both qualify. Loans with three or more borrowers do not.
One catch worth knowing early. If you have already saved 20% or more after your other costs, your loan will not be eligible.The scheme is built for getting in with a smaller deposit, not topping up a large one. It is worth a quick chat before you lock anything in.
What are the WA price caps for the 5% Deposit Scheme?
Short answer: In WA the caps are 850,000 dollars for Perth and regional centres, and 600,000 dollars for the rest of the state. Both the purchase price and the lender-assessed value must be at or under the cap. A 5% deposit at those caps is 42,500 dollars in Perth and 30,000 dollars elsewhere.
The price cap is the ceiling on what you can pay and still use the scheme. WA has two caps. Which one applies comes down to where you buy.Both the purchase price and the value your lender assesses must sit at or under it. So know the number before you make offers.
WA price caps and the 5% deposit they imply
| Where you are buying in WA | Price cap | 5% deposit at the cap |
|---|---|---|
| Perth and regional centres | 850,000 dollars | 42,500 dollars |
| Rest of WA | 600,000 dollars | 30,000 dollars |
You do not have to buy at the cap. The 5% is worked out on the actual value. A 550,000 dollar home in Perth needs about 27,500 dollars, not 42,500.The cap just sets the ceiling.
What can you actually buy with the 5% Deposit Scheme in WA?
Short answer: In Perth the 850,000 dollar cap comfortably covers the median house, so most first home buyers have real choice. In the north and some mining towns, the 600,000 dollar cap can sit below local house prices. There, the better fit is often a unit, a build, or buying in Perth while you work up north.
In Perth
For Perth buyers, the scheme is genuinely strong. The 850,000 dollar cap sits above the typical Perth house. You are not boxed into the bottom of the market. There is real choice across plenty of suburbs, from the northern corridor out to Baldivis, Ellenbrook and Mandurah. And the deposit is a fraction of the usual 20%.
In regional and mining-town WA
Up north the picture changes, and this is where good advice earns its keep. The rest-of-WA cap is 600,000 dollars. But house prices in the strongest mining towns run well above that. In Karratha, the median house price was around 806,000 dollars in late 2025.So a standard Karratha or Port Hedland house will often sit above the cap.
That is not a dead end. It just changes the play. You could buy a unit or townhouse under the cap. You could build, where the land and build come in under 600,000 dollars. Or you could use the scheme to buy in Perth while you earn up north. Plenty of Pilbara workers buy their first Perth home exactly this way. The right answer depends on your plans, not a rule of thumb.
In Perth, the 850,000 dollar cap covers the median house with room to spare. In the Pilbara, the 600,000 dollar cap can sit below it. So the smart move is often a unit, a build, or buying in Perth while you work up north.
Weighing up a regional or mining-town purchase? Our guides on the minimum deposit for Karratha and Port Hedland and postcode restrictions in WA mining towns are worth a read alongside this one.
What type of home and loan does the 5% Deposit Scheme cover?
Short answer: You can buy an existing house, townhouse or apartment, a house and land package, vacant land with a separate building contract, or an off-the-plan home. It just has to be under the cap. The loan must be an owner-occupier loan with principal and interest repayments, over a term of up to 30 years.
The scheme is flexible on the type of home. Under the 5% deposit scheme you can buy an existing house, townhouse or apartment. You can buy a house and land package. You can buy vacant land with a separate build contract. Or you can buy off the plan.For WA buyers eyeing a new build, that flexibility matters. A house and land package under the cap is a common way in.
The loan side is simple. It must be an owner-occupier loan, with principal and interest repayments, over a term of up to 30 years.If you are building, there is extra time to finish, and interest-only payments may apply during construction. The loan has to come from a participating lender. Not every lender is on the panel, which is something we sort out for you.
How do you apply for the 5% Deposit Scheme in WA?
Short answer: You apply through a participating lender, not to the government directly. The simplest path is a chat with us first. We check your eligibility, confirm the price cap for your area, match you to a participating lender with places, and handle the paperwork. You focus on finding the home.
You cannot apply to Housing Australia yourself. The 5% deposit scheme is accessed through a participating lender. A place is reserved as part of your home loan application. Here is how we make it simple:
- Have a quick chat with us about your situation and what you want to buy.
- We confirm you meet the criteria and check the price cap for your suburb.
- We match you to a participating lender that suits you and has places.
- We arrange your pre-approval, so you can shop with confidence.
- You find a home under the cap, and we handle the paperwork.
- You settle with your 5% deposit and no LMI, and move in.
None of that is paperwork you wrestle with alone. We deal with the lenders, the rules and the deadlines across our 60-plus lender panel. Your job is the fun part: choosing the place. Saved around 5% and ready to stop renting? Start by understanding your low-deposit options in WA, then get in touch.
The full rules, the postcode price-cap tool and the eligibility detail sit on the government’s official site at firsthomebuyers.gov.au. Settings can change. We always confirm the current caps and criteria before you commit.
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Start with a chatThis guide is general information for the Australian market, not advice about your situation. Lender credit policy changes, and what applies to you depends on your circumstances. Pilbara Finance is a credit representative (478535) of Mortgage Specialists Pty Ltd, Australian Credit Licence 387025.