What the new 5% Deposit Scheme means for Perth first home buyers
- Emily Smail
- Oct 3
- 3 min read
Getting into your first home is one of life’s biggest milestones, but saving for a deposit has often been the toughest part.
The Albanese Government’s new 5% First Home Buyer Deposit Scheme, which launched on 1 October 2025, is designed to help Australians step into home ownership sooner. And for Perth buyers, it could mean the difference between waiting years and starting your build journey today.
How the scheme works
Traditionally, first home buyers have needed a 20% deposit to avoid paying Lenders Mortgage Insurance (LMI). Under the new scheme, you can:
Purchase with just a 5% deposit.
Avoid paying LMI, saving tens of thousands.
Access the scheme with no income caps or limits on places.
Buy within property price caps set in line with today’s market.
But here’s the key detail: the scheme applies to homes, not land-only purchases. That means if you’re planning to buy a block of land now and build later, you won’t be able to use the scheme.
Instead, the best way to take advantage is to purchase a house & land package or build a complete home with a registered builder like New Era Homes.
Perth example: saving big with the 5% deposit
The median house price in Perth is currently around $895,089 and a median unit price of $638,868. Combined, the city's median dwelling price sits at $855,267.
On a house at the median price, a traditional 20% deposit would mean saving $179,017, not including stamp duty and additional fees, which can easily push your total cash lump sum closer to $200,000.
With the new scheme, you’ll only need a $44,754 deposit. On top of that, you could save around $28,000 in mortgage insurance costs.
That’s money you could put back into your home build, think upgraded finishes, a larger alfresco, or the dream kitchen you thought was out of reach.
Building vs buying established
For many first home buyers, the choice is between buying an established home or building new. With this scheme in place, building becomes even more attractive:
More choice: Instead of competing in Perth’s tight established home market, you can build a home that’s designed for you.
Lower maintenance: A brand-new home means no hidden repair bills, renovations, or costly upgrades.
Energy efficiency: New builds meet today’s energy standards, saving you money on utilities in the long run.
Personalisation: From floorplans to finishes, you get the home you actually want, not one that’s a compromise.
Why build with New Era Homes?
At New Era Homes, we understand that every client has a different vision. Whether your style is modern, coastal, or farmhouse-inspired, we can bring it to life… all while working within the framework of the new deposit scheme.
By building, you’re not just getting into the property market sooner. You’re creating a home that’s tailored to your lifestyle, built to last, and designed to grow with you.
A step towards your first home
The expanded 5% First Home Buyer Deposit Scheme is about making home ownership more achievable. For Perth buyers, it’s an opportunity to get into the market sooner, save money, and start building a home that’s truly yours.
If you’re a first home buyer ready to take the next step, our team at New Era Homes can help you explore your options and make the most of the scheme.
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