Buying a Home With the 2% Deposit

What’s Really Happening in WA’s Market

The federal government’s new Help to Buy scheme, including the 2% deposit and shared‑equity options launched in December 2025, haven’t attracted nearly as much attention as you’d expect. Strangely, the louder conversation has centred on the 5% deposit scheme introduced a few months earlier, especially after its purchase cap was lifted to $850,000 in WA’s capital city and regional centres, with no income caps, no waitlists, and no LMI.  

It’s interesting that the 2% shared‑equity scheme slipped under the radar, because when you look at the timing, both policies landed right as WA’s property market was already running hot.  

How These Schemes Interacted With the Market

If we isolate the last two quarters, the numbers speak for themselves: 

  • Q4 2025: +7.8% growth 
  • Q1 2026: +7.3% growth 
  • Combined: 15.1% of the 24.3% annual growth recorded last year  

That’s a sharp acceleration, and it aligns almost perfectly with the introduction of these buyer‑support schemes. In other words, the policies didn’t create the fire, but they certainly added fuel to it. 

The Counter‑Forces Now Emerging

While government incentives boosted demand, several opposing pressures are now shaping buyer behaviour: 

  • Rising interest rates reducing borrowing capacity 
  • Global instability, particularly in the Middle East, is pushing inflation upward 
  • Uncertainty around investor‑related policy changes 
  • Affordability pressures are hitting buyers under the $850k mark hardest  

At the same time, sellers, especially in the lower price brackets, are increasingly convinced the market has peaked. Whether that’s true or not, the data shows something important: 

  • Stock levels have been rising steadily since late last year 
  • Weekly transaction numbers remain similar to the same period last year  

This means more homes are being listed than sold. If that continues, the market typically moves through two phases: 

  1. Price stabilisation 
  1. Potential price decline if oversupply develops  

For anyone wanting to track this themselves, REIWA’s weekly data remains one of the most reliable early indicators. 

What Might Happen Next?

Looking at Segments and History  

To understand where the market may head, it helps to break it down by buyer type and look at past patterns.  

  1. Upgraders (Above $850k)

There’s significant pent‑up demand among homeowners wanting to upgrade but held back by limited stock. These buyers tend to transact above the $850k threshold, and as more opportunities appear, we’re likely to see: 

  • More subject‑to‑sale offers 
  • Continued support for the median price, simply because of the price bracket these buyers operate in  
  1. First Home Buyers &Investors

These groups are the most sensitive to interest rate changes. Historically, when rates rise: 

  • Borrowing power drops 
  • Investor activity slows 
  • Entry‑level demand softens  

We saw this clearly in July 2024, when rate increases triggered a rise in stock levels and, about six months later, the first signs of price softening in January 2025. 

Conversely, when rates began falling in early 2025, the market surged again. 

The takeaway is simple: Market shifts aren’t guesswork; instead, they follow observable patterns.  

The key indicators to watch now are: 

  • Monetary policy 
  • Housing policy 
  • Stock levels 

Why This Matters for Buyers and Sellers

Understanding these dynamics isn’t just academic; it shapes real decisions for real people. Whether someone is upgrading, downsizing, or entering the market for the first time, timing and strategy matter.  

At Xceed, we spend a lot of time analysing this data because the decisions our clients make have long‑term consequences. As homeowners ourselves, we take that responsibility seriously. 

If you’re weighing up your options and want guidance grounded in data, not hype, our team is here to help.