How much deposit do I need to avoid LMI?

Most lenders require a deposit of at least 20% of the property value to avoid Lenders Mortgage Insurance (LMI). On a $700,000 home that is $140,000. Borrow with a smaller deposit and you will usually pay LMI, a one-off premium that protects the lender if you default and can cost several thousand dollars.

How can I save a deposit faster?

Increase your monthly savings, park the money in a high-interest savings account or term deposit so it compounds, and consider the First Home Super Saver Scheme, which lets eligible first home buyers save through super at a concessional tax rate. A lower deposit target or a cheaper property also brings the timeline forward.

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Q: How long does it take to save a house deposit in Australia?

It depends on the property price, your deposit target and how much you save each month. For a $700,000 home, a 20% deposit is $140,000. Starting with $30,000 and saving $2,000 a month at a 4% return, you would reach that in a little over 4 years. Saving more each month or accepting a smaller deposit shortens the timeline.

See how long it will take to save your home deposit at your current savings rate.

Last verified: 5 May 2026

How long will it take to save your deposit?

Your timeline depends on the deposit target and how much you put away each month. Aiming for a 20% deposit lets you avoid Lenders Mortgage Insurance (LMI); a smaller deposit usually means paying it. Source: ASIC MoneySmart.

Worked example. On a $700,000 home, a 20% deposit is $140,000. Starting with $30,000 and saving $2,000 a month at a 4% return, you reach the target in a little over 4 years.

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

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