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

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Hint: It might be less than you think.

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When most people start thinking about buying a home, they assume they’ll need a 20% deposit—but that’s not always the case.

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The truth is:

• You might only need 5% of the purchase price
• Some buyers get in with as little as 2% (with the right government support)
• And there are even ways to buy with no deposit saved if you have a guarantor

The key is understanding your options, the additional costs involved (like stamp duty and LMI), and putting together a plan that works for you.

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What Is a Deposit—And Why Does It Matter?

Your deposit is the portion of the purchase price you contribute upfront. Most banks like to see a 20% deposit—but that’s not a strict rule.

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First home buyers may be eligible to buy with as little as 5%, and some government-backed schemes (like the First Home Guarantee or the Family HomeGuarantee) reduce the barrier even further.

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But there’s more to buying a home than just the deposit itself. You also need to budget for:

• Stamp duty (unless you're exempt)
• Government fees (like title transfer)
• Lenders Mortgage Insurance (LMI), if you borrow over 80%- Legal or conveyancing costs

All of these make up your total contribution, the real amount you’ll need before you can settle on your dream home.

Real-Life Examples: What You’ll Actually Need

Let’s walk through a few realistic examples using Victorian costs. These will differ a bit by state, but the principles stay the same.

Scenario 1: Single Buyer Using the First Home Guarantee

5% deposit | No LMI | No Stamp duty

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⚠️A quick note on eligibility:Schemes like the First Home Guarantee or stamp duty exemptions depend on things like:

• Your income
• Whether you’ve owned property before
• The value of the home you're buying

For example, in Victoria, the First Home Guarantee is generally available for properties under $600,000–$700,000, and for single applicants earning under$125,000 or couples under $200,000 combined.

Scenario 2: Couple Buying First Home no First Home Guarantee

10% deposit |  LMI | No Stamp duty

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Scenario 3: Buying over the First Home Buyer Thresholds

20% Deposit |No Grants |  Full Stamp duty

What if you are buying in another state?

If you're in NSW, QLD, WA or elsewhere, I can tailor the numbers and walk you through what's available in your area.

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What if you don't have a 20% deposit?

You still have plenty of options:

• 5% deposit loans through select lenders
• First Home Guarantee (no LMI) if eligible
• Guarantor loans with help from a parent or family member
• LMI waivers for certain professions (like doctors, nurses, teachers)

It’s not about hitting a magic number—it’s about creating a strategy that fits you.

Let's work it out together

Everyone’s situation is different. Whether you’re starting with $20k or $120k, I’ll help you:

• Understand your total upfront cost
• Make the most of any government support available
• Get your home loan plan moving, without the stress

📞Book a free 15-minute chat or email me with any questions jane@justrightlending.com.au

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Your dream of owning a home might be closer than you think.

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