How to calculate how much you need for a home loan deposit

In simple terms, LMI is an insurance policy that protects the lender—not you. Generally, you must pay LMI if your deposit is less than 20% of the property’s purchase price. Your choice depends on your income, savings, and how fast you want to buy. While a 20% deposit saves you money long-term, a 5% deposit gets you through the door today. Essentially, a larger deposit gives you more control over your financial future.

Minimum Opening Deposit vs. Minimum Balance

• Generally, you must pay LMI if your deposit is less than 20% of the property’s purchase price.
• This involves sending photos/scans of your licence and ID, proof of address, and sometimes scans of the debit/credit card you deposited with.
• During periods of economic growth, banks may be more likely to offer promotions with low or no deposit requirements to attract new customers.
• The First Home Guarantee is designed to help first home buyers enter the market quicker by providing a guarantee on 15 per cent of a new home’s value.
• While this saves you upfront cash, it increases your monthly repayments and total interest paid.
• There are some other upfront costs you’ll need to know about.

LVR is the amount of your loan compared to the bank’s valuation of your property, expressed as a percentage. Always consult a qualified mortgage broker, conveyancer or financial advisor before making any decisions. Anish built NestPath after going through the home buying process himself, wishing someone had been in his corner. Every guide on NestPath is written from real experience, not a marketing department.

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How much deposit do I need to buy a house in Australia?

This clarifies your exact borrowing power so you can shop with confidence, knowing exactly where your limit lies. Yes, but you will need a signed “Gift Letter” stating the money is a non-repayable gift. If your deposit is under 20%, remember that banks still look for that 3-month history of your own “genuine savings” alongside the gift. $20,000 is a 5% deposit for a $400,000 home, which is viable for many regional properties or units. To make this work, you would need to qualify for a 2% government scheme or have a guarantor to cover the shortfall.

Budget 3% to 5% of the purchase price for costs on top of your deposit. The biggest is stamp duty ($0 to $30,000+, depending on your state and first home buyer exemptions). Others include conveyancing ($1,500 to $3,000), building and pest inspection ($400 to $700), loan fees ($0 to $600) and moving costs ($800 to $2,500). Only with a guarantor home loan, where a family member uses the equity in their property as extra security. Most buyers release the guarantor within three to five years. On a $600,000 house, a 2% deposit is $12,000, a 5% deposit is $30,000, a 10% deposit is $60,000, and a 20% deposit (no LMI) is $120,000.

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How we Rate Minimum Deposit Casino Sites

With the 5% Deposit Scheme you can buy at 5% ($30,000) and pay no LMI; without a scheme, a 5% deposit means roughly $25,000 to $31,000 in LMI. Most lenders want to see “genuine savings” as part of your application. This is separate from the deposit amount; it’s about where the money came from and how long you’ve held it. Lenders Mortgage Insurance protects the lender, not you, if you default. It kicks in whenever your deposit is under 20% and you don’t have a government guarantee or a profession waiver.

• Most government 2% and 5% deposit schemes are strictly for owner-occupiers and cannot be used for investment properties.
• Checking accounts are designed for everyday financial transactions, like paying bills, making purchases, and receiving direct deposits.
• Some accounts only have a minimum opening deposit, while others may also have a minimum balance requirement — especially for savings or money market accounts.
• If property values decrease during the construction period lenders may reassess the loan terms, including the amount they’re prepared to lend.
• $30 deposit casinos are ideal for players looking for a broader range of promotions and rewards.
• With this amount, you achieve an 80% Loan-to-Value Ratio (LVR).

How To Save For A Home Loan Deposit Faster

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Other guides to help

They review the contract, conduct title searches, and coordinate settlement. For an $800,000 property, you should budget for these key expenses to ensure a smooth transition into homeownership. When purchasing an existing property, you’ll generally settle within 30 to 90 days. Even if you’ve owned property in the past, you may be eligible if it’s been more than five years since purchasing. This operates like the First Home Guarantee but applies in regional areas. Home values vary significantly across Australia, which means your deposit could differ by hundreds of thousands of dollars depending on location.

Coin Deposit Machines are available at many branches across Australia. You can use our locations tool to find your closest machine and when you can access it. To use a Smart ATM, you need a NAB card linked to a NAB account.

Banks place a limit on the loan to value ratio depending on things such as the type of property, the location and your financial position. “The rates and fees are what they are. It’s just a matter of mining through the options to get to the loan that suits your needs.” Which is why mortgage broker and Port Finance Group director Anthony McDonald says you need to factor in these increases when making a decision about when and how much to borrow. For example, in Victoria the grant is $10,000 for those buying in metro areas but doubles to $20,000 for those looking in regional areas. In South Australia the grant is only eligible for first-home buyers who build their own home or buy a brand new dwelling. Here’s every deposit path open to Australian buyers in 2026, lowest entry point first.

How Much Deposit to Buy a House 2026: 2% to 20%

But it’s a genuine trade-off, and it’s worth being clear-eyed about the catch. At a 5% deposit the LMI bill is roughly the size of the deposit itself, which is exactly why the 5% Deposit Scheme (5% with no LMI) is such a big deal. And a 20% deposit on an $800,000 home is $160,000, which can take five years or more to save. For a lot of buyers, getting in sooner with a scheme beats waiting that long while prices move. LMI estimates are approximate and vary by lender and insurer, so run your own figure on the LMI calculator. While this saves you upfront cash, it increases your monthly repayments and total interest paid.

Most lenders require a deposit of at least 20%, making saving for a deposit a real barrier to home ownership. With the Australian Government-initiated Home Guarantee Scheme, first-time home buyers could fast-track home ownership dreams with one of three guarantee options1. Work out the deposit you’ll need upfront to meet the purchase price, other costs you need to bear in mind when buying a home, and ways to get into your home sooner. The Regional Home Guarantee allows borrowers to avoid paying lenders mortgage insurance (LMI) because the government acts as a guarantor on part of the loan. The minimum is 2% through the Family Home Guarantee (single parents) or Keystart (WA), and 5% for most first home buyers through the 5% Deposit Scheme with no LMI. On a $600,000 home that ranges from $12,000 (2%) to $120,000 (20%).

This means eligible first time buyers can potentially purchase a property with as little as five per cent deposit without having to take out Lenders Mortgage Insurance. Not sure if your deposit is enough for the price of the home you want to buy? We’ve put together a rough guide for the minimum 5% deposit for various house prices. 20% used to be the minimum, but buyers often opt to purchase with a lower deposit rather than waiting as house prices will often be rising faster than they can save.

These programs allow you to skip LMI even with a tiny deposit. Buyers pay a smaller deposit but own a smaller share of the home initially. It’s then up to them to buy the government out once the value increases. The returned Labor government has pledged to expand access to this scheme. There are several government programs that can help you enter the market with a smaller deposit. For the median Australian home value of $805,000, this equates to requiring around $161,000 in savings upfront.