A deposit is required when buying a home with a mortgage. In Perth, most lenders still prefer a deposit of 20% of the purchase price. Some lenders may accept deposits as low as 5%, but these options usually come with additional costs such as lender’s mortgage insurance. Below, we explain why a deposit is required and what options are available if you cannot afford the full amount.
Why You Need a Deposit
When buying a home, you generally have two choices. You can pay the full purchase price and upfront costs in cash, or you can finance the purchase with a mortgage. For most buyers, a mortgage is the only realistic option due to the high cost of property.
By 2026, Perth’s median house price is approaching the $950,000 to $1,000,000 range, making mortgages an essential pathway to home ownership. However, to qualify for a competitive home loan, lenders assess your credit history and require a minimum deposit.
A deposit reduces the lender’s risk and shows that you are financially stable and capable of managing repayments. A 20% deposit is generally preferred because it lowers the loan to value ratio and avoids lender’s mortgage insurance. While some lenders accept smaller deposits, these loans usually cost more over time due to higher interest rates and insurance premiums.
You are also free to contribute more than the minimum deposit if you can afford it. A larger deposit reduces the size of the loan and can save you a significant amount in interest over the life of the mortgage.
Speak To Our Real Estate Agents
What is the Average House Deposit In Perth in 2026?
In 2026, the average house deposit in Perth is typically 20% of the property’s value. With median house prices sitting around $950,000, this equates to an average deposit of approximately $190,000.
Buyers using government support schemes or lender’s mortgage insurance may be able to enter the market with less, but the standard benchmark used by lenders remains 20%.
What is the Minimum Deposit for a House In Perth in 2026?
The minimum deposit for a house in Perth in 2026 can be as low as 5%, depending on the lender and the buyer’s circumstances. For a $950,000 property, a 5% deposit would be around $47,500.
Deposits below 20% generally require lender’s mortgage insurance unless you qualify for a government scheme such as the First Home Guarantee or the Family Home Guarantee. These programs have strict eligibility criteria and price caps, so not all buyers will qualify.
What if I Can’t Afford the Deposit?
With Perth house prices continuing to rise, saving a full 20% deposit can be challenging. For example, a home priced at $1,000,000 would require a $200,000 deposit under standard lending rules. If this is out of reach, there are several alternatives you can explore.
You may be able to use a guarantor home loan, where a close family member offers equity in their property as security.
Low deposit loans are another option, though they usually involve lender’s mortgage insurance and sometimes higher interest rates.
Government assistance programs may also help eligible buyers. Common options include the First Home Guarantee, the First Home Super Saver Scheme, the First Home Owner Grant and the Family Home Guarantee. Each program has income limits, price caps, and other eligibility requirements.
Some buyers choose to purchase a more affordable property or buy in a different suburb to reduce the required deposit. While Perth’s median prices are high, there are still suburbs and property types below the median.
Finally, delaying your purchase and continuing to save may put you in a stronger financial position, allowing you to avoid additional costs and secure better loan terms.
Summing Up
If you are buying with a mortgage in 2026, a 20% deposit is still the benchmark for purchasing a home in Perth. However, buyers who cannot meet this threshold have other options, including low deposit loans, family assistance, and government support schemes.