How much deposit do you need to save, 5%, 10% or 20%? Enter your savings and see your exact timeline, which small changes shave months off your goal, and which grants get you there faster. Free, no sign up.
Practical strategies to reach your deposit faster.
Open a dedicated high-interest savings account (like ING, Ubank or BOQ) and keep your deposit fund separate from everyday spending.
Use the First Home Super Saver Scheme (FHSSS) to make voluntary super contributions: you can withdraw up to $50,000 with significant tax benefits.
Set up an automatic transfer on pay day so your deposit savings happen before you spend anything else.
Try the 52-week savings challenge: save $1 in week 1, $2 in week 2, and so on. You'll save over $1,300 in a year without noticing.
Use round-up apps like Raiz or Spaceship to invest your spare change automatically, small amounts compound over time.
This tool provides estimates only and does not constitute financial advice. Speak to a licensed mortgage broker or financial adviser for personalised guidance.
How Much Deposit Do You Need to Buy a House in Australia?
The answer depends on which path you take. With the federal 5% Deposit Scheme (formerly the First Home Guarantee) you can buy with 5% and skip Lenders Mortgage Insurance. Without a government scheme most lenders accept 10% (but LMI applies). A full 20% deposit wipes out LMI and unlocks the best interest rates. The table below shows what each looks like in real dollars, and whether LMI is payable.
Deposit %
On $500K property
On $600K
On $700K
LMI payable?
5% (FHBG)
$25,000
$30,000
$35,000
No, government guarantee
10%
$50,000
$60,000
$70,000
Yes, $8,000 to $15,000
15%
$75,000
$90,000
$105,000
Yes, $5,000 to $8,000
20%
$100,000
$120,000
$140,000
No
Whatever deposit size you choose, budget a further 3% to 5% of the property price for buying costs: stamp duty (if you are not fully exempt), conveyancing ($1,500 to $3,000), building and pest inspections ($500 to $800), and lender application fees. On a $600,000 purchase that is an extra $18,000 to $30,000 in cash on settlement day, on top of the deposit itself. Run stamp duty through the stamp duty calculator and LMI through the LMI calculator before locking in your savings target.
Do not forget the move itself, another $2,000 to $5,000 most first home buyers overlook. Factor in professional removalists ($800 to $2,500 depending on volume and distance) plus connecting utilities at the new address (electricity, gas and internet, around $300 to $600 in setup fees and bonds). These land in the same week as settlement, so your savings buffer needs to cover them on top of the deposit.
How to Save for a House Deposit Faster
Most Australians save for a deposit for around 4.6 years (industry capital-city average). These tactics regularly compress that timeline by 12 to 24 months, without lifestyle overhauls:
Automate savings on payday. The number one predictor of a successful deposit save is an automatic transfer to a separate high-interest account within 24 hours of payday. You save before you spend. Aim for 20 to 30% of take-home pay.
Use the First Home Super Saver Scheme (FHSS). Make voluntary super contributions up to $15,000 per year (capped at $50,000 lifetime) and withdraw them for your deposit. The tax saving on a $50K FHSS amount is typically $8,000 to $12,000, a free deposit boost the federal government hands you. See how the FHSS scheme works in detail.
Cut discretionary spending 3 to 6 months before applying. Lenders look at your last 3 months of bank statements. $200/week of unnecessary Uber Eats, subscriptions and retail spending reduces your borrowing power by roughly $40,000 to $50,000. Tightening for 3 months boosts both your deposit and your approval.
Consider rentvesting. Buy an investment property in an affordable high-growth suburb while continuing to rent where you actually want to live. Rental income + tax deductions + capital growth can outpace saving a deposit in high-cost cities. Read the full strategy in our rentvesting guide.
Stack the government schemes. Most Australian states let you combine the federal FHBG (5% deposit) or Help to Buy (2% deposit shared equity scheme) with state-level stamp duty exemptions and the First Home Owner Grant. The combined benefit can be $40,000+ of assistance. Check your state at grants and schemes.
One more lever: check what you would actually need to borrow. Lower the price bracket by $50,000 and your deposit target drops by $5,000 to $10,000. Use the borrowing power calculator to see how much you can borrow, and therefore how small a deposit you really need to reach your target price.
Minimum Deposit for a Home Loan Australia 2026
The minimum deposit for a home loan in Australia varies based on which lender and which government scheme you use:
2%
Single parents (Family Home Guarantee)
Federal government guarantees the remaining 18% so you avoid LMI entirely. Open to eligible single parents with dependent children.
5%
First home buyers (5% Deposit Scheme, formerly First Home Guarantee)
Since 1 October 2025: no income caps and unlimited places. Most first home buyers qualify; property price caps apply by location.
5 to 10%
Standard high-LVR loan
Available without a scheme but you pay LMI (typically $8K to $15K on a $600K purchase at 10% deposit).
10%
Most lenders' minimum baseline
The standard non-scheme minimum across the big four and most credit unions.
20%
LMI-free threshold
No Lenders Mortgage Insurance, access to the sharpest interest rates, strongest lender negotiating position.
A broker can match your deposit size to a lender that accepts it on the best terms rather than forcing you to save more. A NestPath vetted broker will look across 30+ lenders and find the one happy to take your deposit, free, no obligation.
If your deposit is below 20% and you are not using a government scheme, understand exactly what LMI will cost you before committing. Run your scenario through the LMI calculator or read our full LMI explainer. For some buyers, paying LMI and getting into the market 2 years earlier beats waiting to save 20%.
Not sure which deposit size is right for you?
A NestPath vetted broker will tell you exactly how much deposit you need for your scenario, 5%, 10% or 20%, and match you to a lender that accepts it. No fee, no sales pitch.
How much deposit do I need to buy a house in Australia?
Most Australians need between 5% and 20% of the property value as a deposit. With the federal 5% Deposit Scheme (formerly the First Home Guarantee, FHBG) you can buy with just 5% and avoid Lenders Mortgage Insurance entirely, and since October 2025 it has no income caps and unlimited places. A 10% deposit is the most common standard minimum without government help (LMI applies). A 20% deposit avoids LMI completely and gets you the best interest rates. On a $600,000 property that means roughly $30,000 with FHBG, $60,000 standard, or $120,000 to avoid LMI, plus 3 to 5% extra for stamp duty and buying costs.
What is the minimum deposit for a home loan in Australia?
The minimum deposit most lenders accept is 5% of the property value when the federal First Home Guarantee covers your LMI. Single parents can buy with just 2% under the Family Home Guarantee. Without a government scheme, most Australian lenders require a 10% deposit (sometimes 5% with high-LVR lenders but with significant LMI costs). To avoid LMI completely, you need 20%. Speak to a broker, who can match your deposit size to lenders that accept it without forcing you to a larger saving target.
Can I buy a house with no deposit in Australia?
Not typically. Australian lenders almost always require some deposit. The only common path to effectively zero deposit is a guarantor loan, where a parent or close family member uses equity in their own home to secure the portion of the deposit you do not have. This is called a family pledge or security guarantee. Some lenders waive LMI for particular professions: doctors and dentists can reach a 5% deposit at a few lenders, while lawyers and accountants are generally capped at a 10% deposit. Other than those two paths, plan for at least a 5% deposit plus stamp duty and buying costs.
Does my deposit include stamp duty and other costs?
No. Your deposit and your buying costs are separate buckets of cash that you need on settlement day. The deposit is the portion of the purchase price the lender is not funding (e.g. $60,000 on a $600,000 home at 10%). Buying costs include stamp duty (0% to 5% of the property price depending on your state and first home buyer status), conveyancing ($1,500 to $3,000), building and pest inspections ($500 to $800), and loan application fees. Budget roughly an additional 3 to 5% of the property price on top of the deposit.
How long does it take to save a house deposit in Australia?
At a savings rate of $500 per week you can save a $50,000 deposit in about 24 months. Industry research puts the Australian average at around 4.6 years to save a first home deposit in capital cities. Three things compress that timeline materially: the First Home Super Saver Scheme (voluntary super contributions you can withdraw, up to $50,000), a high-interest savings account (5% compared to 0.1% in a transaction account), and automating transfers on payday so you save before you spend. Cutting discretionary spending by $200 per week on takeaways, subscriptions and coffee adds roughly $10,000 per year to your deposit.
This calculator provides estimates only and should not be relied upon for financial decisions. LMI premiums, interest rates and scheme eligibility vary by lender and change over time. NestPath is not a financial adviser. Seek independent advice before making financial decisions.
