The short answer: yes — but you’ll need more cash than you think.
Saving a 5% deposit feels like crossing the finish line. In reality, it’s closer to the starting gun. In Western Australia, a 5% deposit gets you approved in principle — but it won’t cover what you owe on settlement day.
Here are the three costs that close the gap.
1. Transfer Duty (Stamp Duty)
This is the big one. Transfer duty is a WA state government tax on every property purchase, calculated on a progressive scale up to 5.15% of the purchase price.
On a $750,000 home, a standard buyer pays around $29,000. If you are a first home buyer – it will be circa $24,000.
First-home buyers get significant relief:
- Zero duty on purchases up to $500,000
- Scaled concession from $500,001 to $700,000 (metro) or $750,000 (regional)
- Full exemption on eligible off-the-plan purchases up to $800,000
If you qualify, this can save you tens of thousands — and you can stack the $10,000 First Home Owner Grant (only available for new homes) on top. Always confirm your eligibility with RevenueWA before signing, as thresholds have recently been updated.
2. Lenders Mortgage Insurance (LMI)
Any deposit under 20% triggers LMI — insurance that protects your lender (not you) if you default. On a $750,000 purchase with a 5% deposit, LMI can add $20,000–$30,000 to your loan.
You can capitalise it into the loan rather than pay upfront, but either way it increases your total debt from day one.
WA-specific option: If you’re eligible for Keystart — the WA Government’s low-deposit home loan — you can borrow with as little as 2% deposit with no LMI required. Income and property value limits apply, so check eligibility early.
3. Settlement Agent Fees & Adjustments
In WA, a licensed settlement agent handles the legal transfer of ownership — and given there’s no cooling-off period once you’ve signed, this is not a cost to cut corners on.
Budget $1,500–$2,200 all-in, covering professional fees plus Landgate registration, title searches, and PEXA platform costs.
On top of that, expect a council rate adjustment at settlement of $600–$1,200 depending on your council area and timing. If the seller has pre-paid rates for the year, you’ll reimburse their share — it’s routine, but it’s real money.
What You Actually Need
| First-Home Buyer ($550k) | Standard Buyer ($750k) | |
|---|---|---|
| 5% Deposit | $27,500 | $37,500 |
| Transfer Duty | ~$6,800 | ~$29,452 |
| LMI (if applicable) | Varies | $20,000–$30,000 |
| Settlement Agent & Adjustments | ~$2,400 | ~$3,000 |
| Building/Pest, Fees & Buffer | ~$2,200 | ~$2,900 |
| Total Cash Needed | ~$38,900 (7%) | ~$72,852 (9.7%) |
The real number is 7–10% of the purchase price — not 5%.
The Bottom Line
A 5% deposit opens the door. But to actually settle, you need your savings to cover stamp duty, LMI (or choose a lender that doesn’t require it), settlement costs, and a buffer for the adjustments nobody warns you about.
Having said that, the journey to get yourself ready to make the first home purchase is not as daunting as it might seem. I am here to walk you through and work with you to help you choose the most appropriate lender and strategy to help realise your dream.
Drop me a line and let’s kick start your dream.
Clementfinancebroker 