The standard deposit to buy a house in Australia is 20 percent of the purchase price to avoid Lenders Mortgage Insurance. On a 750,000 dollar property that is 150,000 dollars. You can buy with as little as 5 percent through the federal First Home Guarantee with no LMI, or with no deposit at all using a family guarantor loan. Medical professionals can typically borrow at 90 percent LVR with no LMI. On top of the deposit, budget 4 to 6 percent of the purchase price for stamp duty, conveyancing, inspections and other settlement costs.
Key Takeaways
- The standard deposit in Australia is 20 percent of the purchase price to avoid Lenders Mortgage Insurance
- You can buy with 5 percent through the First Home Guarantee, or nothing at all with a family guarantor
- Medical professionals can typically borrow at 90 percent LVR with no LMI through doctor-specific loan policies
- Budget another 4 to 6 percent of the purchase price for stamp duty, conveyancing, inspections and other settlement costs
- Stamp duty varies sharply by state, from zero in the ACT to around 40,000 dollars in Victoria at a 750,000 dollar first home price
Most lenders want a 20 percent deposit for a standard home loan. On a 750,000 dollar property that is 150,000 dollars in deposit, plus another 30,000 to 50,000 dollars in purchase costs. That is the baseline, but it is no longer the only path. In 2026 you can buy with as little as 5 percent down, and in some cases nothing at all, depending on who you are and where you buy.
This guide covers what deposit you actually need, what changes if your deposit is smaller, and where the hidden costs sit.
The quick answer
A standard home loan in Australia requires a 20 percent deposit to avoid Lenders Mortgage Insurance. You can buy with 10 percent or even 5 percent, but the lender will charge LMI to cover their risk, and the premium can run from 10,000 to 40,000 dollars depending on the loan size.
If you are a first home buyer, the federal First Home Guarantee lets you buy with a 5 percent deposit and no LMI. If you are a medical professional, most lenders waive LMI entirely at 90 percent LVR and some go to 95 or 100 percent. If a family member can guarantee part of the loan, you can buy with no deposit at all.
Below the deposit you also need 4 to 6 percent of the purchase price for stamp duty, conveyancing, building inspections and other costs, depending on the state and whether you qualify for any concessions.
What 20 percent looks like in 2026
Using a 20 percent deposit on common Australian price points:
- 500,000 dollar property: 100,000 dollar deposit
- 750,000 dollar property: 150,000 dollar deposit
- 1,000,000 dollar property: 200,000 dollar deposit
- 1,500,000 dollar property: 300,000 dollar deposit
- 2,000,000 dollar property: 400,000 dollar deposit
These are the numbers you need in your bank account to avoid LMI on a standard owner-occupier loan. They do not include stamp duty, conveyancing or moving costs, which sit on top.
Why lenders want 20 percent
Twenty percent is the long-standing benchmark because it gives the lender a buffer if property prices fall and they need to sell the home to recover the loan. At 80 percent loan-to-value ratio, prices can fall meaningfully and the lender still recovers their money.
Above 80 percent LVR, the lender requires Lenders Mortgage Insurance to cover the gap. The borrower pays the premium. The insurance protects the lender, not the borrower, which is the source of most of the confusion around it.
LMI is not a fixed amount. The premium scales with both the loan size and how high your LVR is. On a 600,000 dollar loan at 95 percent LVR the premium runs around 25,000 to 30,000 dollars. On a 1 million dollar loan at 90 percent LVR it runs around 20,000 to 30,000 dollars. At 85 percent LVR on the same loan it might be 10,000 to 15,000 dollars.
The LMI can be added to the loan rather than paid upfront, but you then pay interest on it for the life of the loan.
Paths to a smaller deposit
First Home Guarantee, 5 percent and no LMI
The federal First Home Guarantee, run through Housing Australia, lets eligible first home buyers purchase with a 5 percent deposit and pay no LMI. The government guarantees the gap to the lender.
The scheme is uncapped from 2026 and the property price caps vary by city. Sydney, the ACT and metropolitan Western Australia sit at the highest price caps, with Brisbane, Melbourne and Adelaide following. Regional caps are lower again.
You need to be a first home buyer, an Australian citizen or permanent resident, and intend to live in the property. The income test has been removed.
Family guarantor, potentially zero deposit
A family guarantor loan lets a parent or close family member use equity in their own home as additional security for your loan. The lender effectively gets two properties as security, which removes the LVR problem and means you pay no LMI.
You can typically borrow up to 100 percent of the purchase price plus stamp duty using a guarantor, which means a buyer with no deposit can still get into the market. The guarantor is on the hook for their portion until you have paid the loan down enough to release them, which usually takes three to seven years.
Medical professional LMI waivers
If you are a doctor, dentist, optometrist, vet or one of the recognised medical professions, most major lenders waive LMI entirely at 90 percent LVR. Several go to 95 percent, and a smaller group offer 100 percent loans with no LMI for specific medical roles.
The waiver is a real saving. On a 1 million dollar purchase with a 10 percent deposit, an LMI waiver typically saves 25,000 to 35,000 dollars in premium.
Standard high-LVR loans
If none of the above applies, you can still buy with 5 to 10 percent down on a standard loan, but you will pay LMI. The decision is whether the LMI cost is worth getting into the market sooner versus saving longer for a larger deposit. In rising markets it often is, in flat markets less so.
The genuine savings rule
If you are borrowing more than 90 percent of the property value, most lenders require what they call genuine savings. That means at least 5 percent of the purchase price needs to be money you have saved in your own account, held for at least three months, and visible in statements.
A cash gift from parents does not count as genuine savings on its own, although some lenders accept it if you have held it in your account for three to six months. Rent paid consistently for the last twelve months can count toward genuine savings with some lenders, which helps long-term renters who have been depositing rent but have not built a separate savings balance.
If you are buying at 90 percent LVR or below, the genuine savings rule is generally waived.
The costs that sit on top of the deposit
A deposit is not the only cash you need at settlement. Budget another 4 to 6 percent of the purchase price for the following.
Stamp duty
Stamp duty is the biggest cost outside the deposit and it varies sharply by state and by buyer status.
A first home buyer in Victoria buying at 750,000 dollars typically pays around 40,000 dollars in stamp duty. The same buyer in New South Wales pays around 20,000 dollars under current concessions. In Queensland a first home buyer concession applies up to 700,000 dollars with a partial concession above that. In the ACT, stamp duty has been abolished for all first home buyers from 2026. In WA, first home buyer concessions apply below 500,000 dollars with a partial concession to 600,000 dollars.
If you are not a first home buyer, stamp duty is materially higher across most states.
Conveyancing and legal fees
Budget 1,500 to 3,000 dollars for conveyancing, depending on the state and the complexity of the contract. Strata or off-the-plan purchases sit at the higher end. A solicitor instead of a conveyancer typically costs more, 2,500 to 5,000 dollars.
Building and pest inspections
A standard combined building and pest inspection runs 400 to 800 dollars in metro areas, more for larger properties or rural locations. Strata inspections for apartments run 300 to 500 dollars. Skip these only if you genuinely understand the building.
Lender fees and government charges
Application fees, valuation fees and government registration fees together sit at 1,000 to 2,500 dollars across most lenders. Many waive the application fee on professional packages or doctor loans.
Moving and immediate costs
Removalists, cleaning, utility connections and small immediate purchases typically run 2,000 to 5,000 dollars in the first month. Not technically a buying cost, but a real cash drain at settlement that buyers regularly underestimate.
State-by-state cash at settlement
Buying a 750,000 dollar first home as a first home buyer in mid 2026, here is roughly what you need at settlement using a 20 percent deposit.
New South Wales: 150,000 dollar deposit, stamp duty around 20,000 dollars with the first home buyer concession, plus around 5,000 dollars in other costs. Total cash at settlement around 175,000 dollars.
Victoria: 150,000 dollar deposit, stamp duty around 40,000 dollars after the recent winding back of the first home buyer concession at this price point, plus 5,000 dollars in other costs. Total around 195,000 dollars.
Queensland: 150,000 dollar deposit, stamp duty around 7,000 dollars with a partial first home buyer concession above 700,000 dollars, plus 5,000 dollars in other costs. Total around 162,000 dollars.
Western Australia: 150,000 dollar deposit, stamp duty around 27,000 dollars with no first home buyer concession at this price point, plus 5,000 dollars in other costs. Total around 182,000 dollars.
ACT: 150,000 dollar deposit, stamp duty zero after the 2026 abolition for first home buyers, plus 5,000 dollars in other costs. Total around 155,000 dollars.
South Australia: 150,000 dollar deposit, stamp duty around 35,000 dollars with no broad first home buyer concession at this price, plus 5,000 dollars in other costs. Total around 190,000 dollars.
Tasmania: 150,000 dollar deposit, stamp duty around 14,000 dollars with the first home buyer concession on established homes, plus 5,000 dollars in other costs. Total around 169,000 dollars.
These numbers move with state policy and shift each budget cycle. Use them as a starting reference, not a final figure.
How long it takes to save a 20 percent deposit
A couple on combined gross household income of 180,000 dollars, taking home around 130,000 dollars after tax, saving 20 percent of after-tax income, puts away 26,000 dollars a year. To save a 150,000 dollar deposit takes about 5.8 years at that rate, ignoring investment growth on the savings.
Saving the same deposit at 40,000 dollars a year takes just under four years. Saving at 15,000 dollars a year takes ten years.
Most first home buyers do not save the full 20 percent. They use a 5 to 10 percent deposit, either through the First Home Guarantee, a guarantor arrangement or by accepting LMI. The trade-off is real. Saving longer means more deposit and less LMI, but the property price typically moves against you while you save.
What to do before you start house hunting
Three things before you commit to a property timeline.
First, talk to a broker or lender about borrowing capacity and the deposit pathway that fits your situation. The right pathway is rarely the standard 20 percent, and the difference between a First Home Guarantee, a family guarantor and an LMI loan is often 20,000 to 40,000 dollars in real money.
Second, pull a realistic settlement budget that includes stamp duty for your state and buyer status, conveyancing, building and pest, and a buffer for the first month after settlement. The deposit is only ever part of the cash you need.
Third, decide whether saving longer or buying sooner is the better call for your situation. A rising market punishes savers. A flat market rewards them. The right answer depends on the city, the suburb and the time horizon.
Key Takeaways
- The standard deposit in Australia is 20 percent of the purchase price to avoid Lenders Mortgage Insurance
- You can buy with 5 percent through the First Home Guarantee, or nothing at all with a family guarantor
- Medical professionals can typically borrow at 90 percent LVR with no LMI through doctor-specific loan policies
- Budget another 4 to 6 percent of the purchase price for stamp duty, conveyancing, inspections and other settlement costs
- Stamp duty varies sharply by state, ranging from zero in the ACT to around 40,000 dollars in Victoria at a 750,000 dollar first home price
Working with Marketli
Working out the right deposit pathway is one of the highest-leverage decisions a first home buyer makes. The difference between a 5 percent deposit with LMI, a 10 percent deposit with a medical waiver, a First Home Guarantee place and a family guarantor loan can be tens of thousands of dollars and years on the savings timeline.
Marketli helps Australian buyers model the trade-offs across deposit size, LMI, stamp duty and total settlement cost so you can move on the right property at the right time.
