Work out how long it will take to save your home deposit, and compare different deposit sizes including LVR, LMI and stamp duty costs.
📖 14 min read · ⏱️ Calculator time: ~40 seconds
| Scenario | Deposit needed | LMI cost | Time to save |
|---|
Results are estimates only. LMI, stamp duty and grant eligibility vary by lender and state — confirm exact figures before proceeding.
A home deposit is the upfront portion of a property's purchase price that you pay from your own savings (or eligible sources like superannuation under the FHSSS), with the remainder covered by your home loan. The size of your deposit directly determines your loan amount, your Loan-to-Value Ratio (LVR), and whether Lenders Mortgage Insurance applies.
Standard requirement: 20% deposit (no LMI). Minimum with LMI: 5% deposit. First Home Guarantee: 5% deposit, no LMI, for eligible first home buyers — no income caps apply, but property price caps do (these vary by region).
Most Australian lenders will accept a deposit as low as 5% of the purchase price, though anything below 20% triggers Lenders Mortgage Insurance unless you qualify for a government scheme like the First Home Guarantee. Some lenders occasionally offer products requiring less than 5%, typically with a guarantor or other additional security.
A larger deposit reduces your loan amount, your LVR, and — above the 80% LVR threshold — eliminates LMI entirely. But saving 20% takes meaningfully longer, during which property prices may keep rising. Use the Deposit Scenario Explorer in the calculator above to compare the LVR, estimated LMI and monthly repayment across 5%, 10%, 20% and 30% deposits for your own numbers.
Loan-to-Value Ratio (LVR) expresses your loan amount as a percentage of the property's value: LVR = (Loan amount ÷ Property value) × 100. It's the key number lenders use to price risk — above 80% LVR, most lenders require LMI and may apply a slightly higher interest rate. The LVR Risk Meter in the calculator above shows exactly where your deposit puts you.
Lenders Mortgage Insurance is a one-off premium charged when your deposit is below 20% (LVR above 80%). It protects the lender, not you, if you default on the loan. LMI can typically be paid upfront or capitalised into the loan balance (meaning you also pay interest on it over the life of the loan). It increases sharply as your LVR climbs toward 95%.
Australians can make voluntary super contributions and withdraw them (plus earnings) for a first home deposit. Up to $15,000/year, maximum $50,000 total, with favourable tax treatment.
Possible First Home Owner Grant amounts: $10,000 (NSW/VIC/WA), up to $30,000 (QLD), $15,000 (SA), $20,000 (TAS/NT). These figures are indicative only — eligibility depends on whether the property is new or established, its purchase or construction value, residency requirements, and state-specific conditions. Established homes generally do not qualify in most states. Always confirm current eligibility and amount with your state revenue office before relying on any figure.
In 2026, Australian first home buyers have more options than ever for entering the property market with a smaller deposit. The minimum deposit accepted by most lenders is 5%, though the actual amount you need depends on whether you can access government schemes, whether you can avoid Lenders Mortgage Insurance, and which state you are buying in.
| Deposit % | Deposit on $700k | LMI Cost | LMI Avoidance Option | Total Cash Needed |
|---|---|---|---|---|
| 5% | $35,000 | ~$25,000-$31,000 | First Home Guarantee (no LMI) | $35,000 (+ stamp duty) |
| 10% | $70,000 | ~$15,000-$19,000 | Not available at 10% | $85,000-$89,000 (+ stamp duty) |
| 15% | $105,000 | ~$8,000-$12,000 | Not available at 15% | $113,000-$117,000 (+ stamp duty) |
| 20% | $140,000 | $0 — no LMI | N/A — LMI not required | $140,000 (+ stamp duty) |
The deposit is just one part of what you need at settlement. For a first home buyer purchasing a $700,000 property in Victoria with a 10% deposit:
| Cost | Amount | Notes |
|---|---|---|
| Deposit (10%) | $70,000 | Minimum for this scenario |
| Stamp duty (VIC, FHB exempt) | $0 | Exempt under $600k — partial discount $600k-$750k |
| LMI (if not using FHG) | ~$15,000 | Capitalised into loan typically |
| Conveyancing fees | $1,500 – $2,500 | Budget $2,000 |
| Building and pest inspection | $500 – $800 | Essential for established properties |
| Loan establishment fee | $0 – $600 | Many lenders waive this |
| Moving costs | $500 – $2,000 | Depends on distance and volume |
| Total cash required (approx) | $72,500 – $76,400 | Using FHG (no LMI) |
| Monthly Saving | Savings Rate (5.2%) | To Reach $100,000 | To Reach $140,000 |
|---|---|---|---|
| $1,000/month | 5.2% p.a. | ~7.8 years | ~9.8 years |
| $1,500/month | 5.2% p.a. | ~5.3 years | ~6.7 years |
| $2,000/month | 5.2% p.a. | ~4.0 years | ~5.1 years |
| $3,000/month | 5.2% p.a. | ~2.8 years | ~3.5 years |
| Term | Meaning |
|---|---|
| Deposit | The upfront portion of the purchase price paid from your own funds. |
| LVR | Loan-to-Value Ratio — loan amount as a percentage of property value. |
| LMI | Lenders Mortgage Insurance — generally required above 80% LVR. |
| First Home Guarantee | Government scheme allowing eligible first home buyers to purchase with a 5% deposit and no LMI. |
| FHSSS | First Home Super Saver Scheme — voluntary super contributions withdrawable for a deposit. |
| Genuine savings | Savings held for a minimum period (commonly 3 months) that lenders require as evidence of saving capacity. |
| Settlement | The final step where ownership transfers and remaining funds (including the deposit) are paid. |
Your deposit size shapes almost every other number in a property purchase — your loan amount, your LVR, whether LMI applies, and how long it takes to get there. Use the calculator above to see your own savings timeline (including the growth-adjusted version, which accounts for rising prices), compare 5%, 10%, 20% and 30% deposit scenarios side by side, and check your total upfront costs before you start house-hunting. Pair it with our Borrowing Power and Stamp Duty calculators for the complete picture of what you can afford and what it will actually cost.
How much deposit do I need to buy a house in Australia?
Some Australian lenders may accept applications with a deposit from around 5%, subject to lender policy, serviceability, genuine-savings requirements, LMI or an eligible government guarantee — a 5% deposit does not mean automatic approval. With 5% using the Australian Government 5% Deposit Scheme, you may pay no Lenders Mortgage Insurance if potentially eligible. Without a scheme, deposits below 20% generally trigger LMI (an indicative $10,000-$35,000+, varying by lender, LVR and loan size). A 20% deposit avoids LMI entirely. Remember to also budget for stamp duty, conveyancing, and inspection fees on top of the deposit.
What is Lenders Mortgage Insurance and how much does it cost?
LMI is insurance that the lender takes out to protect themselves if you default and the property sale doesn't cover the loan. You pay for it despite it protecting the lender. On a $700,000 property, indicative LMI ranges are roughly $18,000-$31,000 with a 5% deposit and $10,000-$18,000 with a 10% deposit — actual premiums vary by lender, insurer, loan amount, borrower type and property. It is usually capitalised into the loan rather than paid upfront, though some borrowers choose to pay it in cash.
Can I avoid paying LMI without a 20% deposit?
Yes, potentially. The Australian Government 5% Deposit Scheme allows eligible first home buyers to purchase with a 5% deposit and no LMI — the government guarantees the remaining 15% to the lender, though lender approval, residency/citizenship criteria and property price caps still apply. A guarantor arrangement can also eliminate LMI. Some lenders offer professional waivers (doctors, lawyers, accountants) at higher LVRs without LMI.
Should I wait to save a bigger deposit or buy with 5%?
This depends on whether property prices are rising faster than you can save. If a $700,000 property rises 8% per year, it will be $756,000 next year — the extra $56,000 in price increase likely exceeds the $15,000-$20,000 in LMI you'd pay now. But buying with a very small deposit means higher repayments and less equity buffer. There is no universal answer — model your specific numbers.
What is the First Home Super Saver Scheme?
The FHSS allows first home buyers to make voluntary super contributions (up to $15,000/year, maximum $50,000 total) and withdraw them with earnings for a house deposit. Contributions are taxed at 15% going in instead of your marginal rate. At a 30% marginal rate, saving $50,000 via FHSS saves approximately $7,500 in tax compared to saving in a bank account (the 15% contributions tax vs. your marginal rate).
What is a home deposit?
A home deposit is the upfront portion of a property's purchase price paid from your own savings (or eligible sources like superannuation under the FHSSS), with the remainder covered by your home loan.
What is LVR and how is it calculated?
Loan-to-Value Ratio (LVR) is your loan amount as a percentage of the property's value: LVR = (Loan amount ÷ Property value) × 100. Above 80% LVR, most lenders require LMI and may price the loan slightly higher.
What is the minimum deposit for a house in Australia?
Most lenders accept a minimum 5% deposit. Below 20%, Lenders Mortgage Insurance generally applies unless you qualify for a scheme like the First Home Guarantee.
Is a 5% deposit enough to buy a house?
Yes, most lenders will approve a loan with a 5% deposit, either with LMI or, for eligible first home buyers, via the First Home Guarantee (no LMI). You'll have a higher LVR, higher repayments and less equity buffer than with a larger deposit.
What is the difference between a 10% and 20% deposit?
A 10% deposit still generally attracts LMI (though at a lower rate than 5%), while a 20% deposit avoids LMI entirely by keeping your LVR at or below 80%. Use the Deposit Scenario Explorer above to compare the exact numbers for your property price.
How much deposit do first home buyers need in Australia?
As little as 5% under the First Home Guarantee, with no LMI and no income caps (property price caps apply by region). Without the guarantee, the same 5-20% rules apply as for any other buyer.
Do I need a 20% deposit to avoid LMI?
Under standard lending, yes — 20% (80% LVR) is the usual threshold. Eligible first home buyers can avoid LMI with just a 5% deposit via the First Home Guarantee, and single parents may qualify for a 2% deposit with no LMI via the Family Home Guarantee.
How is LMI calculated?
LMI is calculated as a percentage of the loan amount, increasing as your LVR rises above 80% — commonly around 0.8% at 85% LVR, rising to around 4.5% at 95% LVR. The calculator above estimates this automatically based on your deposit and property price.
Can LMI be added to my home loan?
Yes, most lenders allow LMI to be capitalised into the loan balance rather than paid upfront — convenient, but you'll pay interest on the LMI amount over the life of the loan, increasing its total cost.
What government grants are available for first home buyers?
The First Home Owner Grant varies by state ($10,000 in NSW/VIC/WA, up to $30,000 in QLD, $15,000 in SA, $20,000 in TAS/NT), alongside the First Home Guarantee, stamp duty concessions, and the First Home Super Saver Scheme. Eligibility and amounts vary — always confirm current figures with your state revenue office.
What is the Help to Buy scheme?
A federal shared-equity scheme where the government co-purchases up to 40% of a new home (30% for an existing home), letting eligible buyers enter with as little as a 2% deposit. Income caps apply (from 1 July 2026: $103,000 single / $165,000 combined or single parent, indexed annually) and property price caps vary by location.
What is the Family Home Guarantee?
A scheme allowing eligible single parents or legal guardians with at least one dependent child to purchase with as little as a 2% deposit and no LMI, with the government guaranteeing up to 18% of the property's value.
How much do I need to budget beyond the deposit?
Stamp duty, conveyancing/legal fees ($1,500-$2,500), building and pest inspections ($500-$800), loan establishment fees ($0-$600), and moving costs ($500-$2,000) — often totalling several thousand to tens of thousands of dollars depending on your state and property price.
Does stamp duty vary by state?
Yes, significantly — each state and territory sets its own rates, thresholds and first home buyer concessions. Use our dedicated Stamp Duty Calculator, or the state-based estimate in the Total Upfront Costs panel above, for a figure specific to your state.
Should I save a bigger deposit or enter the market sooner?
This depends on whether property prices in your target area are rising faster than you can save. The Growth-Adjusted Savings Goal in the calculator above models this directly using your own property growth assumption.
What counts as "genuine savings" for a home loan?
Most lenders require evidence that at least 5% of the purchase price has been held in savings (or accumulated through regular contributions) for a minimum period, commonly three months, rather than appearing as a lump sum just before application.
Can I use a gift or inheritance as part of my deposit?
Yes, most lenders accept gifted funds, though some may still require a portion to be genuine savings, and you may need a signed gift letter confirming the funds don't need to be repaid.
Can I use my super for a deposit?
Only through the First Home Super Saver Scheme, which allows voluntary (not compulsory) super contributions of up to $15,000/year, $50,000 total, to be withdrawn for a first home deposit with favourable tax treatment.
Does an investment property need a bigger deposit?
Not necessarily a bigger percentage, but investors don't qualify for first home buyer schemes like the First Home Guarantee, so LMI applies below 20% deposit the same way it does for any non-first-home-buyer purchase.
What happens if my deposit doesn't reach 20% by settlement?
You proceed with a higher LVR, generally paying LMI (unless using an eligible scheme), and typically face a slightly higher interest rate on the excess above 80% LVR — the loan can still proceed, just at a higher cost.
Can I buy a house with no deposit in Australia?
It's very difficult under standard lending — nearly all mainstream lenders require at least 5%. A guarantor loan (using a family member's property as additional security) is one of the few paths to a very low or no cash deposit.
How does a guarantor help with my deposit?
A family guarantor offers additional security (usually equity in their own property) to the lender, which can let you borrow with a smaller cash deposit — sometimes none at all — while avoiding LMI, since the combined security keeps the effective LVR at or below 80%.
Do I need to save the full deposit before applying for pre-approval?
Not necessarily — many buyers get pre-approval while still finalising their savings, since pre-approval indicates your borrowing capacity. You will need the actual deposit funds available and verifiable by the time you make a formal loan application on a specific property.
How accurate is this home deposit calculator?
It uses standard Australian LVR, LMI and stamp duty conventions (the same formulas used across MegaCalcOnline's mortgage calculators) and is a solid planning estimate. Confirm your exact figures with a lender or conveyancer before relying on them for a purchase decision.
Does my deposit affect my interest rate?
Yes, often — many lenders price loans above 80% LVR slightly higher to reflect the added risk, separate from any LMI cost. A larger deposit can therefore reduce both your LMI and your ongoing interest rate.
Can I combine the First Home Guarantee with other schemes?
Yes, in many cases — the First Home Guarantee can generally be combined with the First Home Super Saver Scheme and state-based stamp duty concessions or grants, subject to each scheme's own eligibility rules.
What is a deposit bond?
A deposit bond is an alternative to a cash deposit at exchange of contracts — effectively an insurance guarantee that the deposit will be paid at settlement, useful if your savings are tied up (for example, in a term deposit or another property sale) but not a way to avoid needing the actual funds by settlement.