How Much Deposit Do You Need to Buy a House in Australia? (2026)

Most lenders want a 20% deposit if you want to avoid lenders mortgage insurance (LMI). Many will lend with 5% if you pay LMI. Eligible first home buyers can buy with 5% and no LMI under the Australian Government 5% Deposit Scheme, and single parents with 2%. On the median Melbourne house (about $915,000), that's roughly $183,000 for a 20% deposit or $46,000 for 5%, before stamp duty and other costs.

The deposit options at a glance

Deposit	Loan-to-value ratio (LVR)	LMI?	Who it suits
20% or more	80% or less	No	Anyone who can save it; usually the cheapest loan overall
10–19%	81–90%	Usually yes	Buyers close to 20% who want to buy sooner
5%	95%	Yes, unless you use the 5% Deposit Scheme	First home buyers, especially through the scheme
2%	98%	No, under the scheme	Single parents and legal guardians (5% Deposit Scheme), or Help to Buy buyers

The LVR is the loan as a percentage of the property's value. A smaller deposit means a bigger loan, more interest, and usually LMI.

How much is that where you want to buy?

Using Cotality's median house values at 30 September 2026:

City	Median house value	5% deposit	20% deposit	5% Deposit Scheme price cap
Sydney	$1,466,060	$73,303	$293,212	$1,500,000
Melbourne	$915,119	$45,756	$183,024	$950,000
Brisbane	$1,146,078	$57,304	$229,216	$1,000,000
Adelaide	$990,531	$49,527	$198,106	$900,000
Perth	$1,017,734	$50,887	$203,547	$850,000
Hobart	$790,406	$39,520	$158,081	$700,000
Darwin	$747,252	$37,363	$149,450	$750,000
Canberra	$1,006,269	$50,313	$201,254	$1,000,000

Median house values from the Cotality Home Value Index (30 September 2026). Price caps for capital cities from firsthomebuyers.gov.au.

Two things stand out. In Sydney, Melbourne and Darwin the median house is under the scheme's price cap, so a typical house qualifies. In Brisbane, Adelaide, Perth, Hobart and Canberra the median house is above the cap, so scheme buyers there are usually looking at cheaper houses, units or townhouses.

What a smaller deposit costs you

On an $800,000 purchase at 6.2%, roughly the average rate on new owner-occupier variable loans in August 2026 (RBA F6), over 30 years:

	20% deposit	5% deposit
Deposit	$160,000	$40,000
Loan	$640,000	$760,000
Monthly repayment	$3,920	$4,655
Total interest over 30 years	about $771,000	about $916,000

Calculated with the same formula as our mortgage calculator. Excludes LMI, which would add to the loan if you aren't using the 5% Deposit Scheme.

The smaller deposit costs about $735 a month more and roughly $145,000 more in interest over the loan. In return, you buy years sooner. Whether that's worth it depends on how fast you can save and on what prices do in the meantime.

Lenders mortgage insurance (LMI)

LMI protects the lender, not you, if you default and the sale of the property doesn't cover the loan, but you pay the premium. Most lenders charge it when the loan is more than 80% of the property's value.

What drives the cost: the size of the loan and the LVR. The premium rises steeply as the deposit gets smaller, so 95% LVR costs far more than 85%.
How you pay it: upfront in cash, or added to the loan. Adding it to the loan means paying interest on it for the life of the loan.
How to get an exact figure: premiums are set by the lender's mortgage insurer, so ask your lender or broker for a quote on your loan.

Ways to avoid LMI with less than 20%:

The 5% Deposit Scheme. The government guarantee replaces LMI (below).
A family guarantee. A family member uses equity in their property as extra security, so the lender treats the loan as lower risk.
Profession-based waivers. Some lenders waive or discount LMI for certain professions, such as some medical professionals. Ask lenders directly, because the offers vary.

Government schemes that reduce the deposit you need

Australian Government 5% Deposit Scheme

The government guarantees part of your loan, so a participating lender can lend you up to 95% of the home's value (98% for single parents) with no LMI. Since 1 October 2025 there are no income caps and no waiting list (scheme fact sheet).

You must:

be an Australian citizen or permanent resident, aged 18 or over;
be a first home buyer, or not have owned a home or land in Australia in the last 10 years (single parents and legal guardians have their own criteria);
live in the home (no investment properties);
take an owner-occupier principal-and-interest loan from a participating lender;
buy at or below the price cap for the location.

Price caps (firsthomebuyers.gov.au):

State or territory	Capital city and regional centres	Other areas
NSW	$1,500,000	$800,000
VIC	$950,000	$650,000
QLD	$1,000,000	$700,000
WA	$850,000	$600,000
SA	$900,000	$500,000
TAS	$700,000	$550,000
ACT	$1,000,000 (all areas)	—
NT	$750,000 (capital city)	$600,000

The "regional centres" that get the higher cap are the Central Coast, Coffs Harbour–Grafton, Illawarra, Mid North Coast, Richmond–Tweed and Newcastle–Lake Macquarie in NSW, Geelong in Victoria, and the Gold Coast and Sunshine Coast in Queensland. Check your exact suburb with the scheme's postcode search tool, as some suburbs span postcodes with different caps.

Help to Buy (shared equity): 2% deposit

Under Help to Buy, the government contributes up to 30% of the price of an existing home or 40% of a new home in exchange for that share of the property, and you need a minimum 2% deposit. There are 10,000 places a year. To be eligible you must:

be an Australian citizen;
have a taxable income at or below $103,000 (single) or $165,000 (joint applicants and single parents), based on your latest ATO notice of assessment (wage-indexed each year);
not own any property in Australia or overseas, with some exceptions for single parents;
live in the home.

The trade-off is that the government owns part of your home. When you sell, or buy back its share, it takes its percentage of the value at that time, including any growth.

First Home Super Saver Scheme (FHSS)

You can make voluntary contributions to super and later withdraw them, with associated earnings, for a first home deposit: up to $15,000 a year and $50,000 in total (firsthomebuyers.gov.au). Because concessional contributions are taxed at 15% in super rather than your marginal rate, the deposit can grow faster. You can use it alongside the other schemes.

State grants and stamp duty concessions

States and territories run their own First Home Owner Grants (usually only for new homes) and stamp duty concessions for first home buyers. The amounts, price limits and rules differ by state and change often, so check your state revenue office before you budget around them. Use the stamp duty calculator to estimate duty where you're buying. For Victoria specifically, see how much deposit you need to buy in Victoria.

The deposit isn't the only cash you need

On top of the deposit, budget for:

Stamp duty, unless you qualify for a first home buyer exemption or concession;
Conveyancing or legal fees;
Building and pest inspections;
Lender fees, such as application or settlement fees;
LMI, if you're paying it upfront;
Moving costs and a cash buffer for the first months of repayments.

Stamp duty is usually the largest of these, and in some states it can be as much as a 5% deposit on its own.

Genuine savings

Lenders want evidence that you can save, not just that you have the money. Many ask that part of the deposit, often 5% of the price, is genuine savings: money you've built up and held yourself over several months, rather than a recent gift or loan. Policies differ between lenders and loan types. Ask your lender or broker what they will accept before you sign a contract.

Frequently asked questions

What is the minimum deposit to buy a house in Australia?

For most buyers, 5% of the purchase price with lenders mortgage insurance. Eligible first home buyers can also buy with 5% and no LMI through the Australian Government 5% Deposit Scheme. Single parents and legal guardians can buy with 2% under the same scheme, and Help to Buy allows a 2% deposit with the government taking a share of the home.

How much deposit do I need to avoid LMI?

Usually 20% of the property's value, so the loan is 80% or less. You can also avoid LMI with a smaller deposit through the 5% Deposit Scheme, a family guarantee, or a lender's profession-based LMI waiver.

How much deposit do I need for a first home?

With the 5% Deposit Scheme, 5% of the price, for example $45,756 on Melbourne's median house value of $915,119 at 30 September 2026, as long as the home is within the price cap ($950,000 in Melbourne). You'll also need money for stamp duty (unless exempt), legal fees and inspections.

Can I buy a house with a 5% deposit?

Yes. Many lenders lend up to 95% of the property's value if you pay LMI. First home buyers can avoid the LMI through the 5% Deposit Scheme, which has no income caps or waiting list since 1 October 2025, if the home is within the price cap for its location.

Can I use my super for a house deposit?

Only through the First Home Super Saver Scheme. You can withdraw voluntary contributions you've made to super, plus associated earnings, for your first home: up to $15,000 of contributions a year and $50,000 in total. Your employer's compulsory contributions can't be used.

Does the First Home Owner Grant count towards my deposit?

It depends on the lender. Lenders differ on whether a grant counts towards your deposit or towards the genuine savings they require, even where it can be used at settlement. Grants are run by each state, are usually only for new homes, and change often, so check your state revenue office and ask your lender how they treat it.

Related calculators and guides

Mortgage Calculator — repayments at any deposit size
Borrowing Power Calculator — how much a lender may lend you
Stamp Duty Calculator
First home buyer guide
How much deposit to buy a house in Victoria
Lenders mortgage insurance explained

This article is for general information only and does not constitute financial, tax or legal advice. Individual circumstances vary. Consult a registered tax agent or licensed financial adviser before making decisions based on this information.