How Much Deposit Do I Need to Buy a House in Australia in 2026?
The minimum deposit to buy a house in Australia can be as low as 5% of the purchase price for eligible borrowers — but whether 5% is the right amount for your situation depends on your income, the property price, and which schemes you qualify for. Here's the complete picture.
Deposit Options at a Glance
| Deposit Size | LVR | LMI Required? | Best For |
|---|---|---|---|
| 5% deposit | 95% | Yes (~$18,000–$35,000) or via FHBG | First home buyers using FHBG |
| 10% deposit | 90% | Yes (~$10,000–$18,000) | Those partway to 20% |
| 20% deposit | 80% | No | Best rates, no LMI, full flexibility |
| 20%+ deposit | <80% | No | Premium rates, investor purchases |
What Does 5% and 20% Look Like in Dollars?
| Property Price | 5% Deposit | 10% Deposit | 20% Deposit |
|---|---|---|---|
| $500,000 | $25,000 | $50,000 | $100,000 |
| $650,000 | $32,500 | $65,000 | $130,000 |
| $750,000 | $37,500 | $75,000 | $150,000 |
| $1,000,000 | $50,000 | $100,000 | $200,000 |
Remember: your deposit is separate from stamp duty, legal fees, and other upfront costs — which add another 3–5% of purchase price.
Waiting to save a 20% deposit in a rising market often means the goalposts keep moving. On a property growing at 5%/year, a $750,000 home becomes $787,500 next year — your target 20% deposit increases by $7,500. In many markets, buying at 10% with LMI and getting into the market sooner has proven financially superior to waiting for 20%.
Beyond the Deposit — Other Upfront Costs
First-time buyers often forget that the deposit is not the only cash needed at settlement. Budget for all of these:
- Stamp duty: $0–$38,000+ depending on state, price and buyer type
- LMI: $0–$35,000+ if deposit is under 20%
- Building and pest inspection: $500–$900
- Conveyancing/legal: $1,500–$3,000
- Loan establishment fee: $0–$600
- Moving costs: $1,000–$5,000
- Immediate repairs or furnishings: $2,000–$20,000
A common rule of thumb: add 5% of the purchase price to your deposit savings to cover all upfront costs. On a $650,000 purchase, that's an additional $32,500 on top of your deposit.
How to Save Your Deposit Faster
First Home Super Saver Scheme (FHSS)
Contribute voluntarily to super and withdraw it (plus earnings) for a deposit. Contributions taxed at 15% vs your marginal rate — saving 17–32% in tax. Up to $15,000/year, $50,000 total. Start this early — you need at least 1–2 full financial years of contributions for meaningful savings.
High-Interest Savings Accounts
Dedicated savings accounts from Macquarie, ING, and UBank currently offer 5–5.5% p.a. on balances meeting monthly deposit criteria. On $50,000 in savings, this earns $2,500–$2,750/year in interest.
Term Deposits
If your target purchase date is 12+ months away, a term deposit locks in a guaranteed rate (currently 4.5–5.3% p.a. for 12-month terms). Good for the final stages of deposit saving when you want certainty.
Calculate Your Mortgage Repayments
See exactly what your repayments will be at different deposit sizes and current interest rates.
Calculate Repayments →Estimate Stamp Duty →Check Borrowing Power →Related Mortgage Calculators
Use MortgageCalcAU to estimate repayments, stamp duty, borrowing power and rent versus buy scenarios before choosing a deposit strategy.
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