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How Much Deposit Do You Need to Buy a House in Australia? (2026 Guide)
Find out how much deposit you need to buy a house in Australia, including 5%, 10%, and 20% options, plus tips to save faster.
Rachel
4/7/20261 min read
Saving for a home deposit is one of the biggest hurdles for Australian buyers. But how much do you actually need—and is 20% still required?
The good news: you don’t always need a full 20% deposit to get into the property market.
What Is a Home Deposit?
A home deposit is the upfront amount you pay toward the purchase price of a property.
For example:
Property price: $600,000
20% deposit: $120,000
The remaining amount is covered by your home loan.
How Much Deposit Do You Need?
What Is Lenders Mortgage Insurance (LMI)?
If your deposit is less than 20%, you’ll likely need to pay LMI.
Protects the lender (not you)
Can cost thousands of dollars
Usually added to your loan
💡 Example:
A $500,000 loan with a 10% deposit could include $10,000–$20,000 in LMI.
Use Our Borrowing Power Calculator
Before deciding your deposit, check what you can afford:
👉 Try the Borrowing Power Calculator
This helps you:
Estimate your loan amount
Adjust deposit size
Plan your budget
🇦🇺 First Home Buyer Support (Australia)
You may be eligible for:
✅ First Home Owner Grant (FHOG)
Available in some states for new homes
✅ Stamp Duty Concessions
Reduced or no stamp duty depending on price
✅ First Home Guarantee
Buy with as little as 5% deposit without LMI
How to Save for a Deposit Faster
✅ Set a clear savings goal
Break your deposit into monthly targets
✅ Cut unnecessary spending
Subscriptions, dining out, impulse buys
✅ Use a separate savings account
Avoid mixing spending and savings
✅ Automate your savings
Set up automatic transfers
Common Mistakes to Avoid
Waiting for the “perfect time”
Not factoring extra costs (legal fees, stamp duty)
Saving without a clear target
Ignoring government grants
Final Thoughts
You don’t always need a 20% deposit—but the more you save, the better your financial position.
Start with a realistic goal, use tools to guide you, and take advantage of available government support.
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“For informational purposes only — not financial advice.”