Use the 2026 Home Guarantee Scheme to Buy in WA (With Just a 5% Deposit)
Getting into the Western Australian property market can feel like hitting a moving target. However, the Australian Government has overhauled the Home Guarantee Scheme (HGS) – now often referred to as the 5% Deposit Scheme – to make homeownership more accessible for West Aussies.
At Westgate Home Loans, we specialise in helping first-time buyers and families navigate these incentives to stop renting and start building or buying. Here’s how the updated 2026 rules work for you.
What is the Home Guarantee Scheme?
Under normal circumstances, if you have less than a 20% deposit, lenders require you to pay Lenders Mortgage Insurance (LMI). In a market like Perth, LMI can easily cost you $20,000 to $35,000 over the course of your loan.
The Home Guarantee Scheme acts as a government “bridge.” The government guarantees up to 15% of your loan, allowing you to buy with a 5% deposit (or as little as 2% for single parents) while completely waiving the LMI fee.
2026 WA Price Caps: What Can You Buy?
To keep pace with the growth in the Perth metro and regional hubs like Bunbury and Albany, the property price caps were significantly increased on October 1, 2025. To qualify for the scheme in 2026, your property must fall under these price cap limits:
Perth Metropolitan Area – $850,000
Regional Western Australia – $600,000
These higher caps are a game-changer for buyers considering house and land packages in Perth’s key growth corridors. At Westgate Home Loans, we work closely with our partners at Summit Homes Group to help first home buyers secure homes in areas such as Alkimos, Yanchep, Baldivis and Byford.
Major Policy Updates for 2026
If you checked your eligibility a year ago, the rules have likely changed in your favour:
- Unlimited Places: The “first-come, first-served” waitlists are gone. If you qualify, the guarantee is available.
- Income Caps Removed: Previously, earning “too much” could disqualify you. In 2026, there are no income limits for eligible applicants.
- Joint Applications: You can now apply with friends, siblings, or other family members – you no longer need to be a spouse or de facto partner.
Why Choose Westgate Home Loans?
While the scheme is a federal initiative, you can only access it through a Participating Lender. Westgate Home Loans has access to a panel of over 40 lenders, including those specifically approved for the Home Guarantee Scheme.
- Construction Finance Experts: We co-ordinate your progress payments and work directly with your builder to ensure a seamless construction finance process.
- Local WA Knowledge: We understand WA’s specific lending requirements, stamp duty concessions and first home owner grants.
- Best Interest Duty: As brokers, we are legally bound to put your interests first – not the banks’.
Your Step-by-Step Path to 5% Deposit Success
- Check Eligibility: Ensure you are an Australian citizen or permanent resident.
- Get Pre-Approved: In 2026’s competitive market, a Home Guarantee Scheme pre-approval is a big advantage when making an offer.
- Maximize Grants: We’ll help you pair the scheme with the WA First Home Owner Grant (FHOG) if you’re building new.
Ready to see if you qualify?
Don’t let a 20% deposit stand in your way. Our Perth-based team is ready to run the numbers for you. Book a Free Finance Consultation with Westgate Home Loans today.
