How Much Deposit Do You Need to Buy a New Build in Perth?
A 20% deposit is a strong planning target for a Perth new build because it commonly avoids lenders mortgage insurance. Some eligible buyers may access a government-supported 5% deposit pathway, subject to current scheme and lender requirements.
Quick Summary
A 20% deposit is a strong planning target for a Perth new build because it commonly avoids lenders mortgage insurance. Some eligible buyers may access a government-supported 5% deposit pathway, subject to current scheme and lender requirements.
Your actual contribution depends on purchase price, borrowing capacity, valuation, contract deposit and buying costs. Obtain finance guidance before signing because pre-approval is conditional and does not guarantee approval for a particular property.
A 20% Deposit Is a Strong Planning Target
A 20% deposit means borrowing 80% of the purchase price. On a $700,000 home, the contribution is $140,000 and the starting loan is $560,000 before fees, adjustments and other purchase expenses.
A larger deposit may reduce the loan, repayments and interest paid over time. It can also provide a buffer if the lender’s valuation is below the agreed purchase price.
However, buyers should not use every available dollar as the deposit. Settlement costs, moving, insurance, furnishings and an emergency reserve need separate funding.
Lower-Deposit Pathways
Some lenders accept less than 20%, but lenders mortgage insurance may apply and lending criteria can be tighter. The insurance protects the lender, not the borrower, even when its cost is paid by the buyer.
Eligible buyers may access the Australian Government 5% Deposit Scheme. Eligibility, property-price limits, participating lenders and application availability must be checked when applying.
A 10% deposit on a $700,000 home is $70,000, while 5% is $35,000. These simple calculations do not establish borrowing capacity or confirm the cash required under the contract.
Example Perth Deposit Calculations
| Purchase price | 5% deposit | 10% / 20% deposit |
|---|---|---|
| $600,000 | $30,000 | $60,000 / $120,000 |
| $700,000 | $35,000 | $70,000 / $140,000 |
| $800,000 | $40,000 | $80,000 / $160,000 |
| $900,000 | $45,000 | $90,000 / $180,000 |
| Important | Scheme and lender rules apply | Add buying costs separately |
Use the table as a savings guide only. Ask the lender to calculate repayments, insurance charges and cash-to-complete using the specific property, valuation and loan product.
Deposit Is Not the Complete Cash Requirement
Buying costs can include transfer duty, settlement agent or legal fees, inspections, valuation, loan charges and moving expenses. Concessions may apply to eligible buyers, but rules and thresholds can change.
Review available Perth homes for the agreed price and inclusions before estimating extra spending. Turnkey landscaping, appliances and fittings may reduce immediate post-settlement purchases compared with an incomplete package.
Keep funds for utility connections, building insurance, furniture and the first mortgage payment. Investors should also allow for leasing and vacancy costs before rental income begins.
Check the New-Build Contract and Valuation
The contract states the deposit amount, due date, inclusions, completion process and settlement obligations. Ask an independent settlement agent or lawyer to review it before commitments become unconditional.
For off-the-plan or near-completion property, confirm how finance approval is refreshed before settlement. Income, rates, lending policy and valuation may change during a long contract period.
PRA Developments promotes transparent fixed pricing and turnkey inclusions, but buyers must still verify the exact property schedule, exclusions and agreed variations in the signed documents.
Ask the lender to show repayments at several interest rates and loan sizes. This makes the effect of a smaller deposit visible before you commit.
Expert Insight
Calculate the deposit by subtracting the lender-approved loan from the full cash requirement, not by choosing a percentage alone. A lower deposit can increase repayments and reduce flexibility later.
Confirm current scheme, duty and lender information with qualified advisers. The developer can explain the property and buying process, while financial and legal professionals assess personal suitability.
Can I buy a Perth new build with a five percent deposit?
Potentially, if you meet a participating lender’s criteria and any applicable government-scheme rules. Approval still depends on serviceability, credit, valuation and the selected property.
Will a 20% deposit remove every lending cost?
No. It may avoid lenders mortgage insurance, but application, valuation, settlement and other costs may remain. Compare the lender’s complete written fee and repayment information.
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