Low deposit home loans in Perth made simple
- You do not need a 20% deposit to buy in Perth
- There are multiple ways to get in sooner, including the Australian Government 5% Deposit Scheme and guarantor options
- The right loan depends on how your deposit, income and goals all work together
How we help you own it
If you have been trying to save a deposit in Perth, you already know the challenge.
Prices have moved quickly. Recent Cotality data shows Perth home values jumped 24.8% in the year to March 2026, pushing the median past $1 million. So it’s not surprising that Domain reports it now takes around 4 years and 6 months for a typical couple to save a full 20% deposit on an entry-priced house in the city.
That is a long time to sit on the sidelines.
The good news is you do not always have to wait that long.
Low deposit options exist for a reason. They are designed to help you move forward sooner, with the right structure in place.
At Loan Market Bal & Associates, we keep things simple. You tell us where you are at, and we walk you through what is possible. We work with more than 90 lenders, so you are not stuck with one approach or one set of rules.
You get clear options, explained properly, so you can move forward with confidence.
What is a low deposit home loan?
A low deposit home loan lets you buy with less than the traditional 20%.
In real terms, that makes a big difference.
On a Perth median value just over $1 million:
- 5% deposit is around $50,000
- 10% deposit is around $100,000
- 15% deposit is around $150,000
- 20% deposit is just over $200,000
For most buyers, that gap is not small. It can be years of extra saving.
That is why many people choose to enter the market earlier with a smaller deposit, rather than waiting to hit 20%.
Of course, a lower deposit means lenders look a bit more closely at the rest of your application. Your income, expenses and credit history all come into play.
Understanding lender’s mortgage insurance
If you are buying with less than a 20% deposit, lender’s mortgage insurance (LMI) will usually apply.
It is a one-off cost that protects the lender, not you, and it is often added to the loan rather than paid upfront.
The amount will vary depending on your deposit size and loan value, so it is something to factor into your overall costs early on.
For some buyers, paying LMI can be part of entering the market sooner. For others, it may make more sense to build a larger deposit first.
There is no one-size-fits-all answer. It really comes down to how it fits with your financial position and your timing.
Options for first-home buyers
If you are a first-home buyer in Perth, you have more options than you might think.
Australian Government 5% Deposit Scheme
The Australian Government 5% Deposit Scheme, formerly the First Home Guarantee, is one of the most popular.
It allows eligible buyers to purchase with a 5% deposit without paying lenders mortgage insurance.
In simple terms:
- You save a 5% deposit
- The federal government guarantees part of your loan
- The lender treats it as lower risk and waives lender’s mortgage insurance
There are eligibility criteria, including property price caps and other requirements that vary depending on your situation.
The scheme has expanded in recent years, so more buyers may qualify than before. It is still important to check how the rules apply to you and which lenders are participating at the time you apply.
Guarantor loans
A guarantor loan is another common pathway, especially if you have family support.
Instead of giving you cash, a parent or close family member uses equity in their property as security for part of your loan.
This can help you:
- Buy with a smaller deposit or even no deposit
- Avoid or reduce lender’s mortgage insurance
- Strengthen your overall application
For example, the guarantor may cover the portion of your loan above 80% of the property value.
It is a powerful option, but it needs to be handled carefully. The guarantor is taking on risk, so you want a clear plan for how and when that guarantee is removed.
Other low deposit options
Some lenders also offer more flexible policies depending on your situation.
That might include:
- Strong income with a smaller deposit
- Certain professions with more flexible criteria
The detail varies between lenders, which is why having someone compare options properly can make a difference.
Why deposit size is only part of the equation
It is easy to focus on the deposit, but lenders look at the full picture.They are assessing:
- Your income
- Your existing debts
- Your living expenses
- Your credit history
That means two buyers with the same deposit can end up with very different results.
You might have a smaller deposit but strong income, which opens more doors. Or you might choose a slightly different property to fit lending criteria.
It is not just about getting in. It is about getting in with a structure that works for you.
The Perth market context
Perth has been one of the stronger markets over the past couple of years.
That has created pressure for buyers. As you save, prices can move at the same time.
At the same time, rental costs have risen, which means many people are already paying amounts close to what a mortgage could look like.
That is why more buyers are exploring low deposit options. Not to cut corners, but to move forward with a plan.
Why work with Bal & Associates
Home loans are not one size fits all.
At Loan Market Bal & Associates, we focus on making the process clear and manageable. That means:
- Access to more than 90 lenders
- Straightforward explanations, no jargon
- Help with schemes, guarantor loans and low deposit options
- Support from application through to settlement
- Ongoing guidance
We are based in Perth, so we understand the local market and how lenders are currently assessing applications.
Find the right loan for your Perth home
If you are thinking about buying with a smaller deposit, the first step is understanding what is realistic for you.
That is where we can help.
At Loan Market Bal & Associates, we will walk you through your options, explain how different lenders will look at your situation, and help you take the next step.
Reach out for a conversation and let’s map it out together. Eligibility criteria apply.
FAQs
Can I buy with a 5% deposit in Perth?
Yes. Some lenders allow this, and the Australian Government 5% Deposit Scheme can help eligible buyers avoid lenders mortgage insurance.
Do I always need lenders mortgage insurance?
In many cases, yes, if your deposit is below 20%. Some schemes and lender policies can remove this cost.
How do guarantor loans work?
A family member uses equity in their property as security for part of your loan. This can reduce your deposit requirement and help you avoid lenders mortgage insurance.
Is it better to wait for a 20% deposit?
It depends on your situation. Waiting can reduce costs, but it can also delay your entry into the market. It is worth comparing both paths.
How can a Perth mortgage broker help?
A Perth mortgage broker can compare lenders, explain your options clearly and help structure a loan that suits your deposit, income and goals.