How much deposit do I need to buy a house in Australia?

Lenders generally want a 20% deposit to avoid Lenders Mortgage Insurance, but you can buy with as little as 5-10%. On a $700,000 home, 20% is $140,000, 10% is $70,000, and 5% is $35,000. With less than 20% you'll usually pay LMI, which can add thousands. First home buyers may qualify for the Home Guarantee Scheme to buy with 5% and no LMI.

What is LMI and how much is it?

Lenders Mortgage Insurance protects the lender (not you) if you can't repay, and applies when your deposit is under 20%. The premium depends on your loan size and loan-to-value ratio — often around 1-2% of the loan at a 10% deposit and rising sharply toward a 5% deposit, where it can exceed 4%. It's usually added to your loan, so you pay interest on it too.

What other upfront costs are there besides the deposit?

Beyond the deposit, budget for stamp duty (varies a lot by state — use our stamp duty calculator), conveyancing or solicitor fees, building and pest inspections, loan application/settlement fees, and mortgage registration. Together these commonly add a few thousand dollars on top, so don't spend your entire savings on the deposit alone.

How Much Deposit Do I Need?

Work out the deposit you need for any property price — and the LMI and upfront costs that come with a smaller deposit. See how much more you'd need to reach 20% and avoid LMI.

Last verified: 5 May 2026

How much deposit do I need for a house?

20% avoids Lenders Mortgage Insurance, but you can buy with 5-10% — you'll just pay LMI, which adds thousands. First home buyers may get in with 5% and no LMI via the Home Guarantee Scheme. Source: ASIC MoneySmart.

Worked example. On a $700,000 home: a 10% deposit is $70,000, with LMI around $11,000 and ~$3,500 of other costs — about $84,500 cash needed (plus stamp duty). Reaching 20% ($140,000) wipes out the LMI.

General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.

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