How much deposit do I need?

Typically 5–20% of the property value depending on loan type.

Lenders Mortgage Insurance is charged when your deposit is below 20%.

Can I buy with 5% deposit?

Yes, but LMI usually applies unless you qualify for exemptions.

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

Saving a deposit is one of the biggest challenges when buying a home in Australia. The amount you need depends on the property price, your loan type, and whether you want to avoid lenders mortgage insurance (LMI).

👉 Plan your savings with our savings goal calculator

Typical deposit amounts

Most buyers aim for a deposit between 5% and 20% of the property price:

5% deposit: Minimum for many loans, but usually requires LMI
10% deposit: Reduces LMI costs
20% deposit: Avoids LMI entirely

For example, on a $600,000 property:

5% = $30,000
10% = $60,000
20% = $120,000

What is Lenders Mortgage Insurance (LMI)?

LMI is a one-off cost charged when your deposit is less than 20%. It protects the lender, not you, and can add thousands to your loan.

How to save your deposit faster

Set a clear savings target
Automate regular contributions
Reduce discretionary spending
Consider higher-interest savings or investments

👉 Estimate your repayments once you have a deposit using our mortgage calculator

How your deposit affects repayments

A larger deposit reduces your loan size, which lowers your monthly repayments and total interest. It can also improve your loan approval chances and interest rate.

Frequently asked questions

Can I buy a house with a 5% deposit?

Yes, but you will usually need to pay LMI unless you qualify for a government scheme.

Is it better to wait for a 20% deposit?

It avoids LMI, but waiting longer means you may miss market growth.

What other costs should I budget for?

Stamp duty, legal fees, inspections, and moving costs.

How long does it take to save a deposit?

It depends on your income and savings rate. Many buyers take several years.