20%
Standard Deposit
5%
Min with First Home Guarantee
10%
Min With LMI
Deposit Requirements By Borrower Type
The "right" deposit depends on who you are and what you qualify for. Lenders and government schemes treat different borrower types differently.
| Borrower Type | Standard Minimum | Absolute Minimum | Notes |
|---|---|---|---|
| First home buyer (eligible) | 20% (no LMI) | 5% (First Home Guarantee) | No LMI under scheme, income and price caps apply |
| First home buyer (not under scheme) | 20% (no LMI) | 5 to 10% with LMI | LMI capitalised or paid upfront |
| Upsizer or refinancer | 20% (no LMI) | 10% with LMI | Equity from existing home counts as deposit |
| Investor | 20% (no LMI) | 10% with LMI | 95% LVR possible but LMI is costly |
| Medical, legal, accounting professionals | 10% (no LMI) | 5% (some lenders, no LMI) | Specialist packages waive LMI up to 90 to 95% LVR |
| Guarantor loan | 0 to 5% | 0% (full family guarantee) | Parent uses their equity as security |
How Much Cash You Actually Need
Deposit is only part of the upfront cost. The table below shows the total cash you would need to complete a standard owner occupier purchase at different price points, assuming a 20% deposit and standard stamp duty in NSW (the highest state).
| Purchase Price | 20% Deposit | Stamp Duty (NSW) | Other Costs | Total Cash Needed |
|---|---|---|---|---|
| $500,000 | $100,000 | $17,990 | $3,000 | $120,990 |
| $750,000 | $150,000 | $29,240 | $3,000 | $182,240 |
| $1,000,000 | $200,000 | $40,490 | $3,000 | $243,490 |
| $1,500,000 | $300,000 | $67,990 | $4,000 | $371,990 |
"Other costs" covers conveyancing, building and pest inspection, loan application fees and a small buffer. First home buyers in NSW are exempt from stamp duty on purchases up to $800,000 and get concessions up to $1,000,000, which significantly reduces total upfront cash needed. Similar concessions apply in other states. Try the stamp duty calculator for your exact state and scenario.
Low Deposit Options
If you do not have a 20% deposit, there are several ways to buy sooner rather than waiting to save the full amount.
- First Home Guarantee (5% deposit, no LMI). The Australian Government guarantees the gap between your 5% deposit and the standard 20% for eligible first home buyers. Limited places per year, income caps apply ($125,000 single, $200,000 couple), and property price caps vary by state and metro area. This is the best option for first home buyers who qualify.
- LMI (Lenders Mortgage Insurance). Most lenders will approve a loan up to 90 or even 95% LVR if you pay LMI. On a $600,000 loan at 90% LVR, LMI typically costs $7,000 to $12,000, usually capitalised into the loan. See our LMI guide for how it is calculated.
- Professional lender packages. If you are a medical doctor, dentist, lawyer, accountant, mining engineer or similar, several lenders waive LMI up to 90 or 95% LVR. This can save you $10,000 to $20,000+ at purchase.
- Family guarantor. A parent or close family member uses equity in their property to guarantee part of your loan. You can buy with as little as 0% deposit in some cases. See our guarantor home loan guide.
- First Home Super Saver Scheme. Release up to $50,000 of voluntary super contributions plus earnings for a first home deposit. Saves tax compared to saving outside super.
Upfront Costs Beyond The Deposit
Most first time buyers underestimate the non deposit upfront costs. Build a complete budget before you start looking seriously.
- Stamp duty. The single biggest cost after the deposit. Ranges from roughly 3% to 5% of the purchase price depending on state and whether you are a first home buyer. First home buyer concessions can reduce or eliminate this.
- Conveyancing or legal fees. $1,500 to $2,500 for a straightforward residential purchase.
- Building and pest inspection. $400 to $600. Essential for established homes.
- Loan application and settlement fees. $0 to $800 depending on the lender. Many waive these for broker introduced loans.
- LMI if applicable. Varies from a few thousand to over $30,000 depending on LVR and loan size.
- Moving and initial furnishing. Budget at least $2,000 to $5,000 for the basics.
See How Much You Can Borrow
Your deposit and income together determine what you can borrow. Use Lendera's free comparison tool to see the specific loan amount and rate you qualify for across 60+ lenders.
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Frequently Asked Questions
The standard home loan deposit in Australia is 20% of the purchase price, which avoids Lenders Mortgage Insurance. First home buyers can purchase with as little as 5% deposit under the First Home Guarantee scheme without paying LMI. Most other borrowers can buy with a 10% deposit by paying LMI on top. Some professional and medical lender packages allow purchases with as little as 5% deposit without LMI.
Yes. Eligible first home buyers can purchase with just 5% deposit under the First Home Guarantee scheme, with no Lenders Mortgage Insurance payable. The government guarantees the difference between your 5% deposit and the standard 20%. Income and property price caps apply by state and metro area. Some lenders also offer 5% deposit loans outside the scheme with LMI capitalised into the loan.
The minimum deposit for an investment property is typically 10%, plus costs. Most lenders cap investor loans at 90% LVR, meaning you need 10% of the purchase price plus stamp duty and other costs. Some lenders allow 95% LVR for investors with strong profiles, but LMI at high LVRs is expensive. The 20% deposit benchmark still applies as the threshold above which LMI is not charged.
A 20% deposit on a $600,000 home is $120,000. You would also need to budget for stamp duty (around $22,000 to $32,000 in most states for a $600,000 owner occupier purchase, with concessions for first home buyers), conveyancing (around $1,500 to $2,500), building inspection (around $400 to $600), and moving costs. The total upfront cost typically lands between $145,000 and $160,000.
You cannot directly use your regular superannuation as a deposit, but eligible first home buyers can release voluntary concessional and non concessional super contributions under the First Home Super Saver Scheme, up to $50,000 per person plus earnings. You cannot release employer super contributions. The scheme allows you to save in the tax advantaged super environment then withdraw for a home purchase.
Yes. Some lenders allow a family guarantor, usually a parent, to use the equity in their property to guarantee part of your loan. This can let you buy with little or no deposit of your own and avoid LMI. The guarantor does not give you cash but takes on legal responsibility for the guaranteed portion of the loan until your LVR drops below 80% through repayments or property value growth.