How Long to Save a House Deposit in Melbourne?
Deposit targets, savings timelines, stamp duty, LMI, and first home buyer grants for Melbourne, VIC.
Quick Answer
The median house price in Melbourne is $900,000.00. A 20% deposit is $180,000.00, which takes approximately 4 years 7 months to save at $750/week. Including stamp duty and costs, you'll need about $218,570.00 in total upfront.
Deposit Needed — Melbourne Median ($900,000.00)
| Deposit % | Amount | LMI Required? | Est. LMI Cost |
|---|---|---|---|
| 5% | $45,000.00 | Yes | $29,925.00 |
| 10% | $90,000.00 | Yes | $17,820.00 |
| 20% | $180,000.00 | No | $0 |
LMI estimates are approximate. First Home Guarantee scheme may allow 5% deposit without LMI for eligible buyers.
How Long to Save Each Deposit
| Saving Rate | 5% ($45,000.00) | 10% ($90,000.00) | 20% ($180,000.00) |
|---|---|---|---|
| $500/week | 1 year 9 months | 3 years 6 months | 6 years 11 months |
| $750/week | 1 year 2 months | 2 years 4 months | 4 years 7 months |
| $1,000/week | 10 months | 1 year 9 months | 3 years 6 months |
Assumes saving from $0 without interest. A high-interest savings account earning 5% p.a. would shorten these timelines.
First Home Buyer Grants & Concessions — VIC
First Home Owner Grant (FHOG)
$10,000 for new homes up to $750,000
Potential saving: $10,000.00
Stamp Duty Exemption/Concession
Full exemption on homes up to $600,000; concessional rate $600,001–$750,000
First Home Guarantee: The federal government's First Home Guarantee allows eligible first home buyers to purchase with as little as 5% deposit without paying LMI. Places are limited — check the National Housing Finance and Investment Corporation (NHFIC) for availability.
Estimated Stamp Duty — VIC ($900,000.00 property)
Stamp duty varies by state, property value, and buyer status. Use our Stamp Duty Calculator for an exact figure.
Total Upfront Costs — Melbourne Median Home
Assuming 20% deposit, non-first-home buyer
Total Upfront by Deposit Size
| Cost | 5% Deposit | 10% Deposit | 20% Deposit |
|---|---|---|---|
| Deposit | $45,000.00 | $90,000.00 | $180,000.00 |
| Stamp Duty | $2,170.00 | $18,370.00 | $35,370.00 |
| Est. LMI | $29,925.00 | $17,820.00 | $0 |
| Legal + Inspections | $3,200.00 | $3,200.00 | $3,200.00 |
| Total Needed | $80,295.00 | $129,390.00 | $218,570.00 |
LMI is usually added to the loan, not paid upfront. Shown here for total cost comparison. First home buyers may be exempt from stamp duty and LMI.
Frequently Asked Questions
How much deposit for a house in Melbourne?
With a median house price of $900,000.00 in Melbourne, you need $45,000.00 (5%), $90,000.00 (10%), or $180,000.00 (20%) for a deposit. A 20% deposit avoids Lenders Mortgage Insurance (LMI), which can add $29,925.00 at 5% deposit.
How long to save for a house in Melbourne?
Saving $750 per week, it takes approximately 4 years 7 months to save a 20% deposit of $180,000.00 for a median Melbourne home. At $1,000/week, that drops to 3 years 6 months. You'll also need $38,570.00 for stamp duty, legal fees, and inspections.
Can I buy with a 5% deposit in Melbourne?
Yes, you can buy with a 5% deposit ($45,000.00) in Melbourne, but you'll pay Lenders Mortgage Insurance (LMI) estimated at $29,925.00. This is added to your loan. Some lenders also have stricter criteria for high-LVR loans. First home buyers may be eligible for the First Home Guarantee scheme, which allows 5% deposit without LMI.
House Deposit in Other Cities
Related Tools
General information and estimates only — not financial, tax, or legal advice. Always verify with a licensed adviser or the ATO.