WA Low-Deposit Paths:
Keystart (2%), Australian Government 5% Deposit Scheme (5%), and Single-Parent Scheme (2%)
TL; DR Snapshot
| Program | Who it's for | Minimum Deposit | WA Price Cap | Key Benefit |
|---|---|---|---|---|
| Keystart Home Loan (WA) | WA residents meeting Keystart criteria | 2% | $800,000 (property cap) | Low deposit state loan support |
| Australian Government 5% Deposit Scheme | First-home buyers | 5% | $850,000 (Perth & regional centres) / $600,000 (rest of WA) | No LMI + Government guarantees up to 15% |
| Single-Parent (Family Home) Guarantee | Single parents or legal guardians | 2% | $850,000 (Perth & regional centres) / $600,000 (rest of WA) | No LMI + Government guarantees up to 18% |
Why These Programs Matter
Saving a 20% deposit can be a challenge for WA families. These three programs lower deposit requirements while maintaining responsible lending and owner-occupier focus. They help buyers enter the market 2–10 years earlier, depending on income and savings levels.
Option 1 - Keystart (WA Government)
Summary: WA-specific program helping moderate-income buyers purchase with just a 2% deposit.
Key Details:
- Deposit: 2%
- Max loan: $784,000
- Max property value: $800,000 (across WA regions including Kimberley & Pilbara)
- Loan term: up to 30 years (with retirement planning test)
- Income caps: $148,000 (single) / $218,000 (couple/family)
- Owner-occupier only - no investors or trusts
Pros:
- Lowest entry deposit (2%)
- No LMI
- State-based criteria
Cons:
- Slightly higher interest rate
- Strict property condition standards
Option 2 - Australian Government 5% Deposit Scheme
Summary: Federal initiative through Housing Australia allowing eligible first-home buyers to purchase with a 5% deposit and no LMI.
WA Price Caps:
- $850,000 - Perth & regional centres
- $600,000 - Rest of WA
Features:
- Government guarantee covers up to 15% LVR gap
- Applies to existing homes, house-and-land packages, vacant land + build, and off-the-plan
- Owner-occupier status mandatory
- No LMI saves thousands upfront
Eligibility:
- Australian citizen or permanent resident
- Must not own property
- Must move in within 6 months
Option 3 - Single-Parent (Family Home) Guarantee
Summary: For single parents or legal guardians with dependent children, allowing purchase with a 2% deposit.
How it Works:
- Minimum 2% deposit of Property Value
- Government guarantee covers up to 18% of Property Value (so lender can offer 98% LVR)
- Owner-occupier requirement - must move in within 6 months and stay while under guarantee
- Same price caps as the 5% Scheme: $850,000 Perth/regional centres; $600,000 rest of WA
Pros:
- Just 2% deposit
- No LMI
- Tailored for single-income families
Cons:
- Strict occupancy and eligibility tests
Side-by-Side Comparison
| Feature | Keystart (WA) | Australian Government 5% Scheme | Single-Parent Scheme |
|---|---|---|---|
| Deposit | 2% | 5% | 2% |
| WA Price Cap | $800,000 | $850,000 (Perth & regional) / $600,000 (rest) | Same as 5% scheme |
| Guarantee | None | Up to 15% | Up to 18% |
| LMI | No | No | No |
| Administered By | Keystart (WA Gov) | Housing Australia | Housing Australia |
| Borrower Type | WA residents | First-home buyers | Single parents/guardians |
Final Word
Each path serves a different buyer type:
- Keystart: WA residents needing a 2% entry loan.
- 5% Scheme: First-home buyers needing LMI-free access up to $850,000 (Perth).
- Single-Parent Scheme: Solo parents building equity with just a 2% deposit.