Your deposit options
- 20% deposit. No lenders mortgage insurance and the widest choice of lenders and rates.
- 10% to 15% deposit. Possible with most lenders if you pay LMI, or without LMI if your profession qualifies for a waiver.
- 5% deposit. Through the 5% Deposit Scheme with no LMI, a professional waiver for some occupations, or with LMI at some lenders.
- Little or no deposit. With a family guarantee, where a parent's equity covers the gap.
The costs on top of the deposit
- Stamp duty, unless you qualify for a concession. Use my stamp duty calculator
- Mortgage registration and transfer fees
- Conveyancing or legal fees
- Building and pest inspections
- LMI, if it applies and you choose to pay it upfront
- Moving costs and a buffer for the first few months
For a Queensland first home buyer on an established home under $700,000, there's no stamp duty, which can save tens of thousands of dollars.
Genuine savings
Many lenders want to see that at least 5% of the price has been saved by you over time, usually held for three months or more. Some lenders accept rent paid on time as genuine savings, and many don't require genuine savings at all when there's no LMI, for example under a professional waiver.
Gifts from family
Most lenders accept a gift from family towards your deposit, with a signed letter confirming it doesn't need to be repaid. A loan from family is treated differently, because it counts as a debt.
Questions people ask
How much deposit do I need for a house in Australia?
20% to avoid LMI. You can buy with 5% to 10% using the 5% Deposit Scheme, a professional waiver or by paying LMI, plus costs such as stamp duty.
What repayments would I have?
It depends on the loan size and rate. My repayments guide has a table from $500,000 to $1.5 million.
Can I buy a house with a 5% deposit?
Yes, through the 5% Deposit Scheme if you're eligible, a professional LMI waiver or by paying LMI with some lenders.
Do I need a deposit if a parent goes guarantor?
Not always. A family guarantee can cover the deposit, though you'll usually still need money for costs.
Does a gift from my parents count as savings?
It counts towards your deposit, but many lenders won't treat it as genuine savings.
