First Home Buyers
How much deposit do I need?
Deposit size affects your loan-to-value ratio, whether lenders mortgage insurance applies, and the total upfront cash you need.
Educational information — not personalised financial advice.
Deposit vs upfront funds
Your deposit is only part of the cash you need. Upfront funds usually also include stamp duty (where payable), transfer and registration fees, conveyancing, building and pest inspections, loan fees and moving costs.
The 20% reference point
A 20% deposit puts your loan-to-value ratio (LVR) at 80%. At or below 80% LVR, lenders mortgage insurance (LMI) generally does not apply. Above 80%, LMI is commonly required and is usually paid by the borrower.
Smaller deposits
Lending with a deposit below 20% is common. The trade-offs are typically LMI cost, a smaller set of available products, and closer scrutiny of savings history.
Genuine savings
Many lenders want to see part of the deposit accumulated over time rather than arriving as a lump sum. Gifts and inheritances may be treated differently.
Next step
Use the Deposit Calculator and the Stamp Duty Calculator together to estimate the total upfront amount.
Where this comes from: Written from publicly available Australian lending and government information. Figures change — confirm current details with the relevant lender or government source before relying on them.