How much deposit do you need to buy a house in Australia? You can get in with as little as 2% or 5% down. You don't need 20%. That myth has cost first home buyers years of saving while prices keep climbing, and it's the single most expensive misunderstanding in the whole process.
We don't sell loans. NestPath is free and independent, so what follows is just the honest math: every deposit tier from 2% to 20%, what Lenders Mortgage Insurance (LMI) actually costs at each level, the 2026 government schemes that cut your deposit, and a realistic plan to save faster. By the end you'll know the real number you need, deposit plus the costs nobody mentions until settlement day.
If you'd rather skip the guesswork, our borrowing power calculator shows your real budget and scheme eligibility in about two minutes.
How much deposit do you actually need? The quick answer
The minimum deposit to buy a house in Australia is 2% through a government scheme, or 5% with most lenders, and you can pay $0 LMI on either if you qualify for the First Home Guarantee. A full 20% deposit is the only way to dodge LMI without a scheme, but it's no longer the entry ticket most people assume it is.
Here's every deposit path open to Australian buyers in 2026, lowest entry point first.
| Deposit % | On a $600k home | LMI cost (approx) | How you get there |
|---|---|---|---|
| 0% | $0 | $0 | Guarantor loan (a family member uses their equity) |
| 2% | $12,000 | $0 | Family Home Guarantee (single parents) or Keystart (WA only) |
| 5% | $30,000 | $0 | First Home Guarantee (no LMI if eligible) |
| 5% (no scheme) | $30,000 | $25,000–$31,000 | Standard lender — LMI applies |
| 10% | $60,000 | $8,000–$12,000 | Standard lender — LMI applies (unless profession waiver) |
| 15% | $90,000 | $3,000–$5,000 | Standard lender — LMI applies |
| 20% | $120,000 | $0 | No LMI at 80% LVR |
For most first home buyers the sweet spot is 5% through the First Home Guarantee: no LMI, no income caps, and unlimited places since October 2025. On a $600,000 home, the gap between a 5% deposit with the guarantee and a 5% deposit without it is roughly $25,000 to $31,000 in LMI alone. Sorting out your scheme eligibility early matters more than almost anything else you'll do.
How much deposit do I need for a $500k, $600k, $700k or $800k house?
For a $600,000 house, a 5% deposit is $30,000, a 10% deposit is $60,000, and a 20% deposit (no LMI) is $120,000. The deposit is always a percentage of the purchase price, so the dollar figure scales straight up with the price of the home.
Here's the table people actually search for: each common price point, the deposit you need, and the rough LMI you'd pay at 5% if you're not using a scheme.
| Purchase price | 5% deposit | 10% deposit | 20% deposit | Approx LMI at 5% (no scheme) |
|---|---|---|---|---|
| $500,000 | $25,000 | $50,000 | $100,000 | $20,000–$26,000 |
| $600,000 | $30,000 | $60,000 | $120,000 | $25,000–$31,000 |
| $700,000 | $35,000 | $70,000 | $140,000 | $29,000–$36,000 |
| $800,000 | $40,000 | $80,000 | $160,000 | $33,000–$42,000 |
A couple of things jump out. At a 5% deposit the LMI bill is roughly the size of the deposit itself, which is exactly why the First Home Guarantee (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.
Average house deposit in Australia — by state
A 20% deposit on the median capital-city home in early 2026 ran from about $165,000 in Melbourne to around $259,000 in Sydney. Those are the numbers behind the "I'll never save 20%" feeling, and the reason the 5% column is the one most first home buyers should be looking at.
The medians below are houses-and-units combined (dwelling values) from the Cotality Home Value Index, February 2026 release. Prices have risen sharply across most capitals over the past year, so always sense-check against a current source before you set a target.
| Capital city | Median dwelling value | 5% deposit | 10% deposit | 20% deposit |
|---|---|---|---|---|
| Sydney (NSW) | ~$1,296,000 | $64,800 | $129,600 | $259,200 |
| Brisbane (QLD) | ~$1,081,000 | $54,050 | $108,100 | $216,200 |
| Perth (WA) | ~$989,000 | $49,450 | $98,900 | $197,800 |
| Adelaide (SA) | ~$923,000 | $46,150 | $92,300 | $184,600 |
| Melbourne (VIC) | ~$826,000 | $41,300 | $82,600 | $165,200 |
Two honest caveats. These are median homes across the whole city; entry-level and outer-suburb places sit well below them, and that's where most first home buyers actually buy. And the median isn't the same as the First Home Guarantee price cap in every state any more. In Perth, for instance, the median has pushed past the $850,000 WA cap, so a median Perth home no longer fits the 5% scheme (more on that below). To see what you can realistically afford in your city, calculate your borrowing power.
How much deposit to buy a house in NSW, VIC, QLD and WA?
The deposit percentage is the same everywhere. It's the price and the local schemes that differ. Here's the quick state-by-state read for first home buyers.
- NSW: The First Home Guarantee price cap is $1.5 million in Sydney, Newcastle, Lake Macquarie and the Illawarra ($800,000 elsewhere). A 5% deposit on an $800,000 NSW home is $40,000. NSW also offers a first home buyer stamp duty exemption up to $800,000 and a concession to $1 million. See NSW first home buyer grants.
- VIC: The FHG cap is $950,000 in Melbourne and Geelong ($650,000 elsewhere). A 5% deposit on a $700,000 Melbourne home is $35,000. Victoria gives a full stamp duty exemption up to $600,000 and a concession to $750,000. See VIC first home buyer grants.
- QLD: The FHG cap is $1 million in Brisbane, the Gold Coast and Sunshine Coast ($700,000 elsewhere). A 5% deposit on a $700,000 Brisbane home is $35,000. Queensland's $30,000 First Home Owner Grant for new builds runs until 30 June 2026, then drops to $15,000. See QLD first home buyer grants.
- WA: The FHG cap is $850,000 in Perth ($600,000 elsewhere). A 5% deposit on a $650,000 Perth home is $32,500. WA has the lowest-deposit option in the country through Keystart, and first home buyers there currently pay no stamp duty up to $500,000, with a concession to $700,000 (that $0 band lifts to $600,000 once the WA 2026-27 Housing Taxation Package, announced in the 7 May 2026 Budget, commences — expected from around 28 July 2026, with eligible contracts from 7 May reassessed and refunded). See WA first home buyer grants.
Check your full eligibility, grants and concessions included, with our first home buyer eligibility checker.
What is LMI and how much does it cost?
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. On a $600,000 home with a 5% deposit, LMI typically runs $25,000 to $31,000. It's a one-off premium, usually added to your loan balance at settlement.
The smaller your deposit, the bigger the premium, because the bank is lending a larger slice of the price and charges more to cover it. Here's roughly what LMI costs on a $600,000 property in 2026.
| Deposit | LVR | LMI cost (approx) |
|---|---|---|
| 5% ($30,000) | 95% | $25,000–$31,000 |
| 10% ($60,000) | 90% | $8,000–$12,000 |
| 15% ($90,000) | 85% | $3,000–$5,000 |
| 20% ($120,000) | 80% | $0 |
On that $600,000 property at 5%, the premium can come to about a year of repayments, and it only protects the bank, not you. Calculate LMI for your own property and deposit to see your real number.
There are four ways to avoid LMI:
- Save a 20% deposit — the traditional path, but it takes most buyers three to five years.
- Use the First Home Guarantee — buy with a 5% deposit and the government guarantees the rest, so no LMI is charged.
- Get a guarantor loan — a family member uses their property equity as security.
- Qualify for a profession-based waiver — available to doctors, lawyers, accountants and other qualified professionals.
Paying LMI isn't always the wrong call. If prices are climbing faster than you can save, getting in now with a 10% deposit and around $10,000 of LMI can cost less than waiting two more years while the same home rises $50,000. A mortgage broker can model both scenarios for you, and our full LMI guide walks through who pays it and how to dodge it.
Should you wait for a 20% deposit, or buy now?
For most first home buyers, buying sooner with a 5% deposit beats waiting years to save 20%, because property prices in most capitals have been rising faster than people can save. But it's a genuine trade-off, and it's worth being clear-eyed about the catch.
A smaller deposit means a bigger loan, and a bigger loan means more interest over the life of the mortgage. On a $500,000 home, borrowing 95% instead of 80% adds about $75,000 to your loan, which works out to a few hundred dollars more in repayments each month and tens of thousands more in interest across 30 years. Those are illustrative figures; your real numbers depend on the rate and term, so run them on the mortgage repayment calculator before you decide.
So the honest version is this. Buying at 5% gets you off the rent treadmill and onto the property ladder three to four years sooner, but you pay for it through a larger loan and, if you're not using a scheme, LMI on top. When prices are rising and you're using the First Home Guarantee to skip the LMI, getting in 3–4 years sooner is often the smarter move. When the market is flat and you can save 20% in a year or two, waiting can be the cheaper play. There's no universal right answer, only the one that fits your prices, your savings rate and your timeline. A good broker will run both for you, free.
Profession-based LMI waivers
Some professions can access an LMI waiver from many lenders even with just a 10% deposit, saving $8,000 to $15,000 with no government scheme involved. Lenders treat these jobs as steady, low-default work, so they waive the premium.
The list usually includes doctors, dentists, specialists, pharmacists, optometrists, solicitors, barristers, accountants and engineers. Some lenders extend waivers to nurses, teachers, police and other emergency services workers, though eligibility varies. If you're in an eligible profession, tell your broker upfront. The best professional deals often aren't advertised and only come through brokers who know which lenders are running them.
Government schemes that reduce your deposit
There's more help going than most first home buyers realise. These are the schemes that directly cut the deposit you need, or the cash you bring to settlement.
First Home Guarantee (5% deposit scheme)
The flagship federal scheme lets eligible first home buyers purchase with a 5% deposit and zero LMI; the government guarantees the other 15% to the lender. Since the 1 October 2025 expansion there are unlimited places and no income caps. You apply through a participating lender as part of a normal home loan. Property price caps apply by location: Sydney $1.5M, Melbourne $950k, Brisbane $1.0M, Perth $850k, Adelaide $900k, Hobart $700k, ACT $1.0M, NT $600k (with lower caps in regional areas). If the home is priced above your area's cap, the scheme doesn't apply.
Family Home Guarantee (2% deposit)
For single parents and legal guardians with at least one dependent child. Buy with a 2% deposit and the government guarantees up to 18%, so no LMI. You don't have to be a first home buyer. Since October 2025: unlimited places, no income caps. See our Family Home Guarantee guide.
Help to Buy (2% deposit, shared equity)
A shared-equity scheme where the government co-owns up to 30% of an existing home or 40% of a new build. You need a 2% deposit and pay no LMI, with income caps of $100,000 for singles and $160,000 for couples and single parents (Housing Australia launch settings). You buy out the government's share over time or when you sell.
First Home Super Saver Scheme (FHSS)
Not a deposit cut, but a tax-smart way to save one faster. You salary sacrifice up to $15,000 a year into super, taxed at 15% rather than your marginal rate, then withdraw up to $50,000 (plus deemed earnings) to use as your deposit. The ATO applies a 30% offset when you withdraw, so the saving is real but modest; for most people it adds up to a few thousand dollars in tax over a few years. Couples can each use it. See our full FHSS guide.
Keystart (WA only, 2% deposit)
A WA Government-backed lender offering home loans with a 2% deposit and no LMI, the lowest deposit entry point in the country. The interest rate is higher than the major banks, so most buyers refinance to a cheaper loan within three to five years once they've built some equity. See our Keystart guide.
State grants and stamp duty concessions
Most states offer a First Home Owner Grant for new builds — $10,000 in NSW, VIC and WA, and $30,000 in Queensland until 30 June 2026 (after which it reverts to $15,000) — plus stamp duty exemptions or concessions for first home buyers. In WA, the FHOG property cap is currently $750,000; the WA 2026-27 Housing Taxation Package announced in the 7 May 2026 Budget lifts it to $800,000, but that change has not commenced yet (expected from around 28 July 2026). These grants don't reduce your deposit, but they cut the total cash you need at settlement. Check the full breakdown for your state in our grants guide.
Guarantor home loan (0% deposit)
A guarantor home loan lets you buy with no deposit at all, because a family member, usually a parent, uses the equity in their own property as additional security. That removes the need for both a deposit and LMI. The guarantor doesn't make your repayments; they only provide security, and they're liable for the guaranteed portion if you default. Most buyers release the guarantor within three to five years once they've built enough equity. It's the cheapest way into the market if a family member can help, so talk it through with a broker until everyone understands the commitment.
Genuine savings — what counts?
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.
What usually counts:
- Regular deposits from your salary into a savings account over 3+ months
- Term deposits held in your name for 3+ months
- Shares or managed funds held for 3+ months
- Equity in an existing property
- FHSS withdrawals (treated as genuine savings by most lenders)
What typically doesn't:
- One-off gifts from family (unless held in your account for 3+ months)
- A recent inheritance or windfall
- Borrowed funds (personal loans, credit card advances)
- A tax refund deposited recently
Lenders generally want to see at least 5% of the purchase price as genuine savings. Some are more flexible, accepting a strong rental history as proof you can manage repayments, or allowing gifted funds alongside a smaller genuine-savings component. A mortgage broker can match you with a lender whose policy fits your situation.
How your deposit and borrowing power work together
This is the part most calculators get wrong, and it catches buyers off guard. Your deposit isn't your maximum property price. Your actual budget is your borrowing power plus your deposit.
Say your borrowing power is $600,000 and you have $80,000 saved. Your total budget is $680,000, not $600,000, and not $80,000. The deposit percentage is then worked out on that full price. A 10% deposit on a $680,000 home is $68,000, which means you need $68,000 of your $80,000 as the deposit, leaving about $12,000 for stamp duty, conveyancing and the other upfront costs below.
Getting this straight means you go house-hunting with real numbers instead of a nasty surprise at the finish line. Our borrowing power calculator shows your real budget in a couple of minutes.
Beyond the deposit — the other upfront costs
Your deposit is only part of the cash you need on the day. These costs sit on top, and generally can't be rolled into your home loan.
| Cost | Typical range | Notes |
|---|---|---|
| Stamp duty | $0–$30,000+ | First home buyers get exemptions or concessions in most states. Calculate yours |
| Conveyancing/solicitor | $1,500–$3,000 | Contract review and settlement. Find a conveyancer |
| Building and pest inspection | $400–$700 | Essential for established homes. Book an inspection |
| Loan application fees | $0–$600 | Often waived for first home buyers |
| Strata/body corporate report | $200–$350 | Required for apartments and townhouses |
| Building insurance (first year) | $1,200–$2,500 | Required by the lender before settlement |
| Removalists | $800–$2,500 | Book two weeks ahead; weekends go first |
| Utility connections | $300–$600 | Electricity, gas and internet setup |
Rule of thumb: budget 3% to 5% of the purchase price for costs on top of your deposit. On a $600,000 property that's $18,000 to $30,000, depending mostly on whether you qualify for a stamp duty exemption in your state.
How to save for a house deposit faster
Once you know your target, the question is how to get there. These are the moves that actually shift the timeline, not the "skip the smashed avo" clichés. Start by setting your number with a house deposit calculator: our free deposit tracker and borrowing power calculator let you set a goal and watch the gap close.
1. Use the FHSS scheme
The single most effective accelerator. Instead of saving in an account taxed at your marginal rate, salary sacrifice into super taxed at 15%, then withdraw it for your deposit with a 30% offset applied. For most people that's a few thousand dollars of extra savings from tax alone. See our full FHSS guide.
2. Automate your savings on payday
Set up an automatic transfer to a dedicated high-interest savings account the day you get paid. If the money moves before you see it, saving becomes effortless. Many high-interest accounts pay around 5% in 2026 (higher on intro rates), so every dollar sitting in a 0.01% transaction account is quietly costing you.
3. Cut the big three
Forget the small stuff and go after the three expenses that genuinely shift the dial:
- Housing: a cheaper suburb, downsizing, or a housemate can save $200 to $500 a week — $10,000 to $26,000 a year.
- Transport: running a car costs $10,000 to $15,000 a year. Going down to one car, or onto public transport, frees up real cash.
- Food: cooking at home five nights a week instead of three can save $100+ a week.
4. Track your progress
Watching the number climb is one of the most motivating parts of the whole journey. Use our free deposit tracker to set your target, log contributions, and see exactly when you'll hit your goal.
Worked example — the cash you actually need
Numbers in a table are one thing; the cash you hand over is another. Here's what each deposit path looks like on an entry-level Perth home at $650,000 — an outer-suburb or unit price, well below the ~$989,000 Perth median, and the kind of property a first home buyer actually targets.
| Scenario | Deposit | LMI | Stamp duty | Other costs | Total cash needed |
|---|---|---|---|---|---|
| 2% Keystart | $13,000 | $0 | ~$3,500 | ~$3,000 | ~$19,500 |
| 2% Family Home Guarantee | $13,000 | $0 | ~$3,500 | ~$3,000 | ~$19,500 |
| 5% First Home Guarantee | $32,500 | $0 | ~$3,500 | ~$3,000 | ~$39,000 |
| 5% no scheme | $32,500 | ~$21,000 | ~$3,500 | ~$3,000 | ~$60,000 |
| 10% no scheme | $65,000 | ~$9,000 | ~$3,500 | ~$3,000 | ~$80,500 |
| 20% no scheme | $130,000 | $0 | ~$3,500 | ~$3,000 | ~$136,500 |
The gap between the cheapest entry (Keystart at about $19,500) and the traditional 20% path (about $136,500) is roughly $117,000. For most Perth first home buyers, the First Home Guarantee at 5% is the standout: around $39,000 of cash, no LMI, and competitive bank rates from day one.
A note on the stamp duty figures. Right now (June 2026), WA first home buyers pay no stamp duty on homes up to $500,000, with a concession tapering out to $700,000 — those thresholds lift to $600,000 / $800,000 once the WA 2026-27 Housing Taxation Package (announced in the 7 May 2026 Budget) commences, expected from around 28 July 2026, with eligible contracts dated from 7 May reassessed and refunded. A $650,000 home sits inside the current concession band, so the duty is only a few thousand dollars rather than the full $22,000-odd a non-first-home buyer would pay. The exact figure depends on the concession formula, so confirm it on the stamp duty calculator and the WA grants page before you budget. Worth knowing too: at the ~$989,000 Perth median, the property sits above the $850,000 WA First Home Guarantee cap, so a median Perth home no longer qualifies for the 5% scheme. Which is exactly why entry-level stock matters.
Not sure what you can afford in your city? Our free borrowing power calculator shows your real budget, deposit scenarios and scheme eligibility in under two minutes, and when you're ready, map out your full journey from deposit to keys.
Frequently asked questions
How much deposit do you need to buy a house?
You need a minimum of 2% to 5% of the purchase price, depending on the path. Through a government scheme like the First Home Guarantee you can buy with 5% and pay no LMI; through the Family Home Guarantee, just 2%. Without a scheme, most lenders want 5% to 20%, with LMI applying under 20%.
How much deposit do I need to buy a house in Australia?
The minimum is 2% through the Family Home Guarantee (single parents) or Keystart (WA), and 5% for most first home buyers through the First Home Guarantee with no LMI. Without a scheme, lenders typically require 5% to 20%. On a $600,000 home that ranges from $12,000 (2%) to $120,000 (20%).
What is the minimum deposit for a home loan in Australia in 2026?
The minimum deposit for a home loan in Australia in 2026 is 2%, available through the Family Home Guarantee for single parents or Keystart in WA. Most first home buyers use the First Home Guarantee to buy with 5% and skip LMI. A guarantor loan can let you buy with 0% deposit if a family member provides security.
How much deposit do you need for a $600,000 house?
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. With the First Home Guarantee 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.
Can I buy a house with a $10,000 deposit?
Realistically only with help. At 5%, $10,000 covers about a $200,000 purchase, which is below most capital-city prices. To buy a typical home on $10,000, you'd generally need the Family Home Guarantee or Keystart (2% deposit) on a lower-priced property, or a guarantor loan where a family member provides security.
How much is LMI on a 5% deposit?
LMI on a 5% deposit typically costs $15,000 to $31,000, depending on the property price and lender. On a $600,000 home with a 5% deposit ($30,000), expect roughly $25,000 to $31,000. The First Home Guarantee removes LMI altogether, because the government covers the gap to the lender instead.
Is it worth paying LMI to buy sooner, or should I wait for 20%?
It can be worth it when prices are rising faster than you can save: getting in now with a 10% deposit and around $10,000 of LMI may cost less than waiting two years while the home rises $50,000. When the market is flat and you can save 20% quickly, waiting is cheaper. A broker can model both for your situation.
What is the average house deposit in Australia?
A 20% deposit on the median capital-city home in early 2026 ran from about $165,000 in Melbourne to roughly $259,000 in Sydney (Cotality, February 2026). But first home buyers rarely buy the median or save 20%; using the First Home Guarantee, the deposit you actually need is 5% of an entry-level home, often $30,000 to $50,000.
How can I save for a house deposit faster?
The most effective move is the First Home Super Saver Scheme: salary sacrifice into super at 15% tax instead of your marginal rate, then withdraw it for your deposit. Beyond that, automate savings on payday into a high-interest account (around 5% in 2026), cut your big three expenses, and track progress with our free deposit tracker.
Do I need genuine savings for a home loan?
Most lenders want at least 5% of the purchase price as genuine savings, money you've saved yourself over 3+ months and shown through regular salary deposits. Gifts, tax refunds and recent windfalls often don't count unless held for 3+ months. Some lenders accept a strong rental history instead; a broker can find the flexible ones.
Can I buy a house with no deposit in Australia?
Only with a guarantor home loan, where a family member uses the equity in their property as extra security. That removes the need for both a deposit and LMI. The guarantor doesn't make your repayments; they only provide security, and they're liable for the guaranteed portion if you default. Most buyers release the guarantor within three to five years.
What other costs do I need besides a deposit?
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–$3,000), building and pest inspection ($400–$700), loan fees ($0–$600) and moving costs ($800–$2,500).
