How Much Deposit Do You Need to Buy a House in Australia? (2026)

The headline number isn't the only number

Deposit gets all the attention, but it's only half the cash you need to settle. Stamp duty, conveyancing, and building inspections add another 5% on top in most states. We break the full picture down below.

The short answer

Most Australian lenders need a minimum 5% deposit. To avoid Lenders Mortgage Insurance (LMI), you need 20%. Government schemes for first home buyers can bridge that gap, dropping the LMI-free threshold to 5% (or 2% for single parents) on eligible properties.

20%

Deposit needed to avoid LMI on a standard purchase

On a $700,000 home that's $140,000 saved before stamp duty and fees.

Deposit tiers explained

5% deposit

The bare minimum at most banks. You'll pay LMI (typically $15,000 to $25,000 on a $500,000 to $700,000 loan), and your interest rate may be slightly higher than for a 20% deposit borrower. Eligible first home buyers can skip LMI entirely via the Home Guarantee Scheme.

10% deposit

A common middle ground. LMI is roughly 1.5% to 2% of the loan amount, rather than 3% to 4% at the 5% level. You unlock more lenders and better rates than a 5% deposit would, without waiting another year or two to hit 20%.

20% deposit

The classic "no LMI" benchmark. You get the widest choice of lenders, the sharpest interest rates, and no upfront insurance premium. You also start with more equity, which means a smaller loan and lower repayments.

What LMI actually costs

LMI is a one-off premium that protects the lender (not you) if you default and the sale doesn't recover the loan. The premium scales with your loan-to-value ratio (LVR).

Indicative LMI on a $600,000 purchase:

5% deposit ($30,000): roughly $20,000 to $25,000 LMI
10% deposit ($60,000): roughly $10,000 to $13,000 LMI
15% deposit ($90,000): roughly $5,000 to $7,000 LMI
20% deposit ($120,000): $0 LMI

Most lenders will let you capitalise LMI into the loan rather than pay it upfront, but you then pay interest on it for the life of the loan. Our Lenders Mortgage Insurance Guide walks through when capitalising makes sense.

All-in cash needed at settlement

Beyond the deposit itself, you need to budget for:

Stamp duty: $0 to $40,000+ depending on price, state, and first home buyer status. Use our Stamp Duty Calculator for the exact figure.
Conveyancing or solicitor: $1,500 to $3,000.
Building & pest inspection: $500 to $1,000.
Bank application & valuation fees: $400 to $1,200.
Title transfer & registration: $200 to $400.
Council and water adjustments: $200 to $1,500 (rates already paid by the seller, prorated).

On a $700,000 house with a 20% deposit and no first home buyer exemptions, plan for about $165,000 to $175,000 in total cash to complete the purchase.

Quick estimate

Stamp duty calculator

State

Purchase price

I’m a first home buyer (apply concessions)

Estimated stamp duty

$26,717

382.00% effective rate on $700,000

This is a simplified estimate using current state brackets. For an exact figure factoring in foreign-buyer surcharges, off-the-plan concessions, or pensioner rebates, use the full calculator

Government schemes (5% & 2%)

Home Guarantee Scheme (HGS)

The federal government guarantees the gap between your 5% deposit and the 20% LMI threshold for eligible first home buyers. You skip LMI entirely. Income caps apply ($125,000 single, $200,000 couple), and each region has a price cap.

Family Home Guarantee (FHG)

For single parents with at least one dependent, the deposit drops to 2% of the property price. Same LMI exemption mechanism as the HGS.

Regional First Home Buyer Guarantee (RFHBG)

Same 5% deposit / no LMI structure as the HGS but for regional buyers who've lived in or moved to a regional area. Place caps and price caps apply.

Our blog post on first home buyer schemes by state covers state grants and stamp duty exemptions on top of these federal schemes.

Genuine savings rule

Most lenders require 5% of the purchase price to be "genuine savings" — money you've held in your own name for at least 3 months. The point is to demonstrate you can budget consistently. Gifts and inheritance often don't count toward this 5%, though some lenders will accept them after a 3-month holding period. Rent paid on time (with a rental ledger) can substitute for genuine savings at some banks.

First Home Super Saver scheme

FHSS lets first home buyers contribute up to $15,000 per financial year (max $50,000 total per person) into super, then withdraw it later for a deposit. Contributions are taxed at 15% rather than your marginal rate, and withdrawals are taxed at marginal rate minus 30%. For a couple earning $90,000 each, this can mean $4,000 to $6,000 in tax savings on a $50,000 contribution each.

FHSS isn't fast money

The withdrawal application takes about 25 business days from the first request to funds in your bank account. Don't request the withdrawal until you have a signed contract — once requested, the funds must be used for a home or returned (with tax penalties).

How to save faster

Open a high-interest savings account. The 1% to 2% difference between bonus saver accounts and a standard transaction account adds $500 to $2,000 a year on a deposit balance.
Auto-transfer on payday. Money you don't see is money you don't spend. Treat your deposit savings as a fixed expense.
FHSS if you're a first home buyer. The 15% super tax rate beats most after-tax savings. See our notes above.
Renegotiate fixed costs. Insurance, energy, mobile, internet, and streaming subscriptions can usually be cut by 10% to 30% with one round of phone calls.
Avoid HECS lump sum repayments. Counter-intuitive, but lenders treat HECS as an expense that reduces borrowing capacity. Paying it off helps borrowing power but burns cash you could have used as deposit.

The quarterly read

Get notified when scheme rounds open

The Home Guarantee Scheme allocates places twice a year. Subscribe to get a heads-up when the next round opens.

Next steps

Three concrete moves once you know your target deposit:

Run the numbers. Use the Borrowing Power Calculator and Stamp Duty Calculator to back into a realistic price range.
Get pre-approval. Most lenders give 90-day pre-approval for free. It tells you exactly what you'll be allowed to borrow at today's rates.
Apply for any scheme places early. HGS, FHG, and RFHBG spots fill within weeks of each new financial year.

Want one-on-one help with this stage?

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Common questions

Can I buy a house with no deposit in Australia?

Effectively no. The lowest you can go without a guarantor is 5% (with LMI). With a parental guarantor, some lenders will fund 100% of the purchase price, secured against equity in the parent's home. This works but the guarantor is liable if you default — it's a serious commitment for the family member providing the guarantee.

Is a 5% deposit enough?

Mathematically yes — most banks accept it. Practically, expect to pay $15,000 to $25,000 in LMI on a $600,000 to $700,000 loan. The Home Guarantee Scheme avoids LMI on a 5% deposit but has property price caps and an income test. If you qualify, it's usually the cheapest path in.

How much deposit for a $500,000 house?

5% is $25,000 (with LMI), 10% is $50,000, and 20% is $100,000. Add stamp duty (varies by state — about $18,000 in NSW for a non-first-home buyer), conveyancing ($1,500 to $3,000), building/pest inspection ($600 to $1,000), and lender fees ($600 to $1,200). Total cash to settle a 20% deposit purchase: roughly $120,000 to $125,000.

Can I use my super for a house deposit?

Through the First Home Super Saver scheme (FHSS), first home buyers can voluntarily contribute up to $15,000 per year (max $50,000 total) into super and later withdraw it for a deposit. The contributions are taxed at 15% rather than your marginal rate, so the after-tax balance grows faster than savings outside super. Withdrawals are taxed at marginal rate minus 30%.

What counts as genuine savings?

Money held in your own bank account for at least 3 months — typically 5% of the purchase price. Shares, term deposits, and rent paid (with a clean rental ledger) often count. Cash gifts and inheritance usually don't, but some lenders will accept them if held for 3+ months.

Does the Home Guarantee Scheme have a deadline?

Places are allocated in batches (typically 1 July and 1 January each financial year). Demand outstrips supply each round, so apply through a participating lender as early as possible. The scheme is administered by Housing Australia, with eligibility based on income, citizenship, and price caps that vary by suburb.