How much deposit do I need?
Anywhere from 2% to 20% of the price. The costs on top of the deposit are what catch people out.
The four deposit levels
- 20%. No lenders mortgage insurance, the widest choice of lenders and the sharpest rates.
- 10%. Widely available with lenders mortgage insurance, or without it for some professions.
- 5%. With the 5% Deposit Scheme for eligible first home buyers, no LMI. Without it, a few lenders with LMI.
- 2%. Through MyHome for eligible buyers.
A family guarantee can stand in for some or all of the deposit.
Costs on top of the deposit
| On a $550,000 established home | Estimate |
|---|---|
| 5% deposit | $27,500 |
| Transfer duty | $20,373 |
| Conveyancing and searches | Ask your conveyancer |
| Building inspection | Ask your inspector |
| Title and mortgage registration fees | Set by the Land Titles Office |
That puts the cash needed near $50,000, not $27,500. A new home that qualifies for the $20,000 grant changes the sum again.
What counts as a deposit
Lenders like genuine savings: money built up or held for three months or more. Gifts from family, the First Home Super Saver release, tax refunds and proceeds from selling a car can all contribute. Each lender has its own rules on how much must be genuine savings.
First Home Super Saver
You can make voluntary contributions to super and later withdraw up to $50,000 of them, plus earnings, for a first home. Up to $15,000 of contributions from any one financial year count. Employer contributions don’t. Apply to the ATO for a determination before you sign a contract.
Questions people ask
Can I borrow the transfer duty?
Not usually as part of a standard loan. It has to come from your funds, which is why it must be in the budget.
Is rent paid counted as genuine savings?
Some lenders accept a good rental history in place of some genuine savings.
General information, last updated November 2026. Scheme figures, lender policies and duty rates change, so confirm them before you rely on them.
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