The 5% Deposit Scheme
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Build your new home with just a 5% deposit in Perth
The 2025 Home Guarantee Scheme makes building more achievable than ever!
Want to build your first home but still saving for a big deposit? Great news you don’t need 20% anymore.
With the 5% Deposit Scheme, part of the Australian Government’s Home Guarantee Scheme eligible Western Australians can build a brand-new home with as little as a 5% deposit and no Lenders Mortgage Insurance (LMI).
At New Choice Homes, we can help you understand your eligibility and start your building journey sooner.
What is the 5% deposit scheme
The 5% Deposit Scheme allows eligible buyers to build or buy new homes with just a 5% deposit, while the government guarantees up to 15% of the loan. That means:
- No Lenders Mortgage Insurance (LMI)
- Higher property price caps of up to $850K in WA metro
- No income limits in the expanded scheme
- More buyers now eligible, including returning buyers
- Build sooner – don’t wait years to save 20%
This is one of the best pathways into home ownership for first home builders in Perth’s rising market.
Who can apply?
You may be eligible if you:
✔ Are a first home buyer or returning buyer who hasn’t owned a home in the last 10 years
✔ Are buying or building a new home to live in
✔ Have a minimum 5% deposit saved
✔ Can meet a participating lender’s loan requirements
✔ Are an Australian citizen or permanent resident
Don’t worry if you’re unsure, we can check everything for you
Why use the 5% scheme to build new
Buying established may force you to compromise on design and location and pay a premium for someone else’s wear and tear. Here are the benefits of building new:
- A modern, energy-efficient home
- Flexible designs to suit your lifestyle
- Fixed-price confidence before market rises further
- Avoid costly renovations and maintenance
And with the 5% Scheme, it becomes even more affordable.
How New Choice Homes can help
We make the finance and building process simple.
With New Choice Homes, you get:
✔ Free eligibility check for the 5% Scheme
✔ Access to Perth house & land packages eligible under price caps
✔ Guidance through finance approval, design and build stages
✔ Competitive inclusions and trusted workmanship
We’re with you from first deposit to final handover.
Explore more finance options
Discover more low-deposit and government-backed options to help you get into your new home faster.
Download the guide
Fill out the form below to download the guide.
Find a house & land package
Explore New Choice Homes’ curated house and land packages across Perth. Affordable, customisable options to suit your needs. Start your home-building journey with us today!
Finance tips
When you build with New Choice Homes you build with confidence!
Frequently asked questions
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What is the main financial benefit of the expanded Home Guarantee Scheme?
The primary financial advantage is the ability for eligible applicants to secure a construction loan with a deposit of just 5%, without having to pay Lenders Mortgage Insurance (LMI).
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Is the updated 5% deposit scheme only for first-time buyers?
No. While the updated first home owners scheme is aimed at First Home Buyers, the government has expanded the scheme to support more Australians as long as they meet specific income thresholds and other qualifying criteria.
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How does the updated government guarantee help me avoid paying LMI?
Under the Home Guarantee Scheme, the government provides the guarantee to the participating lender for the difference between the 5% deposit and the standard 20% deposit threshold for a new home.
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Can the new home guarantee be combined with other grants and incentives?
Yes. One of the major benefits is that the Home Guarantee Scheme can be combined with the First Home Owner Grant and the First Home Buyers Stamp Duty Rebate.
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What is the maximum value for a property in WA under the Home Guarantee Scheme?
The Home Guarantee Scheme in Western Australia covers properties up to the value of $850,000 in the Metro WA area.
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How do I apply for the Home Guarantee Scheme?
Our financial enquiries team can assist new home buyers with the process of applying for the Home Guarantee Scheme.
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Is there a limit to the amount of houses covered under the Home Guarantee Scheme?
There used to be a cap of the first 35,000 properties; however, this cap has now been removed.
