The short answer
Moneysmart says a good savings goal for a house deposit is 20% of the purchase price, plus enough to cover buying costs such as stamp duty, legal fees and inspections. A 20% deposit can help you avoid lenders mortgage insurance (LMI). You can buy with less: some lenders accept smaller deposits with LMI, and eligible first home buyers may buy with a 5% deposit and no LMI through the Australian Government 5% Deposit Scheme.
The 20% benchmark
For a home loan, the deposit sets your loan to value ratio (LVR): the loan as a percentage of the lender-assessed value. With a 20% deposit you borrow 80%, which is where many lenders stop charging LMI. A lower valuation than the price you pay can push your LVR up, so LMI can apply even when your deposit looked like 20%.
So the answer to “how much deposit do you need to buy a house?” depends on the price, the lender’s valuation, and whether you’re willing to pay LMI or are eligible for a scheme. Try the LVR calculator to see where your deposit puts you.
Buying costs on top of the deposit
Your savings need to cover more than the deposit. Moneysmart lists buying costs such as stamp duty, legal fees and inspections. Loan fees, such as application or valuation fees, can also apply.
- Stamp duty (transfer duty) is set by each state and territory. Depending on where you live, you may be eligible for a first home buyer concession or exemption. Estimate it with the stamp duty calculator.
- Legal or conveyancing fees for the contract and settlement. See what a conveyancer does.
- Inspections, such as building and pest.
If you’re buying at auction, Moneysmart says to expect to pay a deposit immediately, for example 10% of the purchase price, and there’s generally no cooling-off period. A deposit bond can stand in for that cash on exchange, but it doesn’t replace the deposit you need for the loan.
Buying with a smaller deposit
- Pay LMI. Some lenders accept smaller deposits if you pay lenders mortgage insurance. It protects the lender, not you, and adds to your costs. See what LMI is.
- The 5% Deposit Scheme. The Australian Government 5% Deposit Scheme is for first home buyers with a minimum 5% deposit, or single parents and legal guardians with a minimum 2% deposit. The scheme’s website says that from 1 October 2025 there are no income caps, no waitlists and no LMI. Property price caps apply, you apply through a participating lender, and you must keep meeting the scheme’s obligations, such as living in the home, or the lender may require LMI.
- A family guarantee. A family member uses part of their own property as security for your loan, which can help you buy with a smaller deposit. They take on financial risk if you can’t repay, so they should get their own legal advice first. See guarantor home loans.
- A professional LMI waiver. Some lenders may waive LMI for eligible professions, subject to their criteria. See LMI waiver home loans.
- Help to Buy. A shared-equity scheme where the government may contribute part of the price, so you borrow less. See Help to Buy explained.
A smaller deposit means a bigger loan, more interest over time and less buffer if values fall. Rules, caps and eligibility apply to every option.
Want to know which options may fit your deposit?
Book a CallCan I use my super for a house deposit?
Not the super your employer pays for you. The ATO says super guarantee contributions made by your employer aren’t eligible. But the First Home Super Saver (FHSS) scheme lets eligible first home buyers put extra voluntary contributions into super and later withdraw them, with associated earnings, to use towards a home deposit. According to the ATO:
- you can contribute a maximum of $15,000 in any one financial year, up to a total of $50,000 across all years
- you can withdraw 100% of eligible voluntary contributions you didn’t claim a tax deduction for, and 85% of eligible concessional contributions such as salary sacrifice, plus associated earnings
- you must be 18 or older when you request an FHSS determination, and generally must never have owned property in Australia
- the home must be in Australia, for you to live in
- you must request an FHSS determination before settlement, before ownership transfers to you
- eligibility is assessed for each person, so a couple can each use their own eligible contributions for the same home.
The FHSS scheme has tax rules and timing steps that matter. The ATO suggests checking the scheme is right for you, and a registered tax agent or licensed financial adviser can help you decide. We can then factor the released amount into your buying plan.
Work out your number
Start with the price range you’re looking at, then add buying costs and check your LVR. The borrowing power calculator gives a first estimate of what lenders may lend, and each lender assesses your income and expenses its own way. General information only.
Sources: Moneysmart, Buying a house (last updated 14 October 2026) and Ways to buy a home sooner (last updated 3 August 2026); ATO, First home super saver scheme (read 13 November 2026); firsthomebuyers.gov.au, Australian Government 5% Deposit Scheme (read 13 November 2026). Help to Buy: see Help to Buy explained for its sources.
Mortgage broker at My Finance Consultants. Daniel compares home loan options from a panel of 40+ lenders for refinancers, investors and home buyers, by phone, evenings included. About Daniel
General information only. It doesn’t consider your objectives, financial situation or needs, and it isn’t tax, legal or financial product advice. Lending criteria, fees and charges apply.