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

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.