How Much Deposit Do You Need to Buy a House in Victoria? (2026 Guide)
Wondering how much deposit you need to buy a house in Victoria? This complete 2026 guide covers minimum deposits, LMI, government grants, stamp duty conce.
How Much Deposit Do You Need to Buy a House in Victoria? (2026 Guide)
Saving a deposit is the single biggest barrier most Victorians face when trying to get into property. With Melbourne's median house price sitting at around $972,000 and units at $641,000 as of mid-2026, even a 10% deposit means finding $60,000 to $97,000 in cash — before you've paid a cent in stamp duty, legal fees or moving costs.
But here's the thing most buyers don't realise: you don't necessarily need 20%. In fact, depending on your situation, you may be able to buy with as little as 2% deposit — and with significant government help on top.
This guide covers everything: the minimum deposit rules, what Lenders Mortgage Insurance actually costs you, every government scheme available to Victorian buyers in 2026, and a breakdown of what you'd actually need to save for different price points across Victoria.
The Short Answer: How Much Deposit Do You Need in Victoria?
There is no single answer because it depends on three things — your lender, the property price, and whether you qualify for any government assistance. Here is the practical landscape:
| Deposit % | What It Means |
|---|---|
| 2% | Possible under the federal Help to Buy shared equity scheme (eligible buyers only) |
| 5% | Minimum for most lenders; qualifies for the First Home Guarantee (no LMI) |
| 10% | Common middle ground; reduces LMI significantly |
| 20% | Avoids LMI entirely; access to best interest rates |
The standard minimum deposit most Australian lenders require is 5% of the purchase price. However, depositing less than 20% typically triggers Lenders Mortgage Insurance (LMI), which can add tens of thousands of dollars to your loan.
What Is LMI and How Much Does It Cost in Victoria?
Lenders Mortgage Insurance protects the lender — not you — if you default on the loan. It is charged when your deposit is below 20% of the property value, meaning your Loan-to-Value Ratio (LVR) is above 80%.
LMI is not a flat fee. It scales with your loan size and LVR, and it can be significant:
| Property Price | Deposit (5%) | LMI Estimate |
|---|---|---|
| $600,000 | $30,000 | ~$14,000–$18,000 |
| $750,000 | $37,500 | ~$18,000–$24,000 |
| $900,000 | $45,000 | ~$22,000–$30,000 |
LMI is usually added to your loan, which means you also pay interest on it over the life of your mortgage. A $20,000 LMI premium on a 30-year loan at 6% effectively costs you closer to $40,000 in total repayments.
When you can avoid LMI without a 20% deposit:
- You qualify for the federal First Home Guarantee (5% deposit, no LMI)
- You access the Help to Buy shared equity scheme (2% deposit, no LMI)
- You use a guarantor loan (a parent uses their home equity to cover the gap)
- You are a medical, legal or accounting professional — some lenders waive LMI for certain professions
How Much Deposit Do You Actually Need in Victoria?
Let's make this concrete across different property price points. These figures assume a standard buyer without any government scheme:
Melbourne Metro (Median House ~$972,000)
| Deposit Level | Cash Required | LMI Payable |
|---|---|---|
| 5% | $48,600 | ~$30,000 |
| 10% | $97,200 | ~$15,000 |
| 20% | $194,400 | $0 |
Melbourne Unit (Median ~$641,000)
| Deposit Level | Cash Required | LMI Payable |
|---|---|---|
| 5% | $32,050 | ~$18,000 |
| 10% | $64,100 | ~$9,000 |
| 20% | $128,200 | $0 |
Regional Victoria (e.g. Ballarat, Bendigo, Geelong)
Regional prices are considerably lower, which changes the maths significantly. A property at $550,000 in a regional centre means:
| Deposit Level | Cash Required | LMI Payable |
|---|---|---|
| 5% | $27,500 | ~$12,000 |
| 10% | $55,000 | ~$6,000 |
| 20% | $110,000 | $0 |
Regional buyers also have access to the Regional First Home Buyer Guarantee, which eliminates LMI entirely on a 5% deposit.
The Deposit Is Just the Start: Other Upfront Costs in Victoria
Many buyers save their deposit and then get caught out by additional costs at settlement. Here is what you need to budget for on top of your deposit:
Stamp Duty — Victoria's biggest upfront cost after the deposit itself. On an $800,000 property with no concessions, stamp duty is approximately $43,000. However, first home buyers can receive significant exemptions and concessions (covered in detail below).
Conveyancing fees — $1,200 to $2,500 depending on the complexity of the transaction.
Building and pest inspection — $400 to $800 for a pre-purchase inspection, essential for established homes.
Loan application and establishment fees — $0 to $1,000 depending on your lender.
Mortgage registration fee — Around $120, a government fee for registering your mortgage on the title.
Moving costs — $500 to $3,000 depending on volume and distance.
As a practical rule of thumb, budget an additional 3–5% of the purchase price for these costs on top of your deposit.
Victorian Government Support: Every Scheme Available in 2026
This is where Victorian buyers have a genuine advantage. There are more grants, exemptions and schemes available in 2026 than at any point in the state's history. Many can be stacked together.
1. First Home Owner Grant (FHOG) — $10,000 Cash Grant
The state government's flagship support for first home buyers. Administered by the State Revenue Office Victoria.
What you get: A one-off $10,000 cash payment toward your purchase.
Key eligibility rules:
- Purchasing or building a new home (never previously occupied or sold as a residence)
- Property value must be $750,000 or under
- You (and any co-buyers) must never have previously owned residential property in Australia
- You must live in the property as your principal place of residence for at least 12 continuous months after settlement
- Must be 18 years or older and an Australian citizen or permanent resident
Important: The FHOG does not apply to established (previously lived-in) homes. If you are buying an existing property, you will not receive this grant but may still qualify for stamp duty concessions.
Regional Victoria: The same $10,000 grant applies. Note that a higher $20,000 regional FHOG that existed in previous years has since ended — the current rate is $10,000 statewide.
The 2026–27 Victorian Budget, handed down on 5 May 2026, confirmed the $10,000 FHOG and associated stamp duty concessions continue unchanged.
2. First Home Buyer Stamp Duty Exemption and Concession
This is potentially the largest saving available to Victorian first home buyers — and it applies to both new and established properties, unlike the FHOG.
Full exemption (zero stamp duty):
- Property valued at $600,000 or less
- Saving: approximately $26,000–$31,000 depending on the purchase price
Sliding scale concession:
- Property valued between $600,001 and $750,000
- The closer to $600,000, the larger the concession. At $750,000, the concession reduces to zero and full stamp duty applies.
Eligibility conditions:
- Must never have previously received a first home buyer duty exemption or concession in any Australian state
- Must never have previously held a relevant interest in residential property in Australia
- Must occupy the property as your principal place of residence for at least 12 months
For a first home buyer purchasing an established property at $580,000, the stamp duty saving alone is approximately $28,770. Combined with the $10,000 FHOG on a new build, the total benefits can exceed $38,000 before factoring in federal schemes.
3. Off-the-Plan Stamp Duty Concession (Extended to October 2026)
If you are buying an apartment, unit or townhouse off the plan, a temporary concession applies that can dramatically reduce your stamp duty.
This concession — originally introduced in October 2024 and now extended to 20 October 2026 — works by excluding construction costs from the dutiable value of the property. Meaning you only pay stamp duty on the land value component, not the finished building value.
This concession is available to all buyers, not just first home buyers, and is uncapped in terms of property value. It applies to contracts entered into before the end date.
4. Federal First Home Guarantee (5% Deposit, No LMI)
Administered by Housing Australia (formerly the Home Guarantee Scheme, renamed the Australian Government 5% Deposit Scheme from October 2025).
What it does: The federal government guarantees up to 15% of your property's value to the lender, meaning you only need a 5% deposit without paying LMI. You borrow the remaining 95% as normal.
Key details for Victoria:
- Income cap: $125,000 for singles / $200,000 for couples (combined)
- Property price cap in Melbourne metro: $800,000
- Property price cap in regional Victoria: $650,000
- Must be a first home buyer or have not owned property in the last 10 years
- Property must be for owner-occupation (not investment)
- From 1 October 2025, places in this scheme are unlimited — the previous annual caps have been removed
This scheme can be combined with the FHOG and the stamp duty exemption on a new build, making it possible to enter the market with as little as $30,000 in cash on a $600,000 property after grants.
5. Regional First Home Buyer Guarantee
The same structure as the First Home Guarantee above, specifically targeting buyers purchasing in regional Victoria.
Regional locations include Geelong, Ballarat, Bendigo, Shepparton, Wodonga, and other non-metropolitan areas. If you are flexible on location, buying regionally stacks the deposit scheme with lower property prices and significantly reduced overall costs.
6. Family Home Guarantee (Single Parents — 2% Deposit)
Designed for eligible single parents or single legal guardians with at least one dependent child.
What it offers:
- Purchase with a 2% deposit, no LMI
- Government guarantees up to 18% of the property value
- Income cap: $125,000 single
- Property price cap: $800,000 Melbourne metro / $650,000 regional Victoria
- Applies to both new and established homes
- Does not require you to be a first home buyer — previous homeowners may qualify
7. Help to Buy — Federal Shared Equity Scheme (2% Deposit)
The newest and most significant federal scheme, launched in December 2025 and currently available in Victoria through Commonwealth Bank and Bank Australia, with more lenders expected to join.
How it works:
- The federal government contributes up to 40% of the purchase price for new homes, or up to 30% for existing homes
- You contribute a minimum 2% deposit
- Your loan covers the remainder
- No LMI required
- You own your home outright but the government holds an equity share
- You repay the government's share over time through voluntary repayments or when you sell
Income eligibility:
- Singles: $90,000 or under
- Couples: $120,000 or under
Important trade-off: Because the government holds an equity share, it also participates in any capital gain when you sell. You are not building full equity in the traditional sense. This is a meaningful long-term consideration — if your property grows significantly in value, the buyback cost will be higher.
The scheme is targeted at 10,000 eligible buyers per year nationally. Current participating lenders in Victoria: Commonwealth Bank and Bank Australia.
How the Schemes Stack Together: A Real Example
Here is what a strategic first home buyer in Victoria could access in 2026:
Scenario: A single buyer, income $95,000, purchasing a new off-the-plan townhouse at $580,000 in Geelong.
| Benefit | Value |
|---|---|
| First Home Owner Grant | $10,000 cash |
| Stamp duty exemption (under $600K) | ~$28,770 saved |
| First Home Guarantee (5% deposit, no LMI) | ~$14,000–$18,000 LMI avoided |
| Total benefit | $52,000–$57,000 |
Cash needed: 5% deposit = $29,000 + conveyancing/costs $3,000 = **$32,000 out of pocket** to buy a $580,000 property.
That is a dramatically different picture from what most people assume they need.
Tips for Saving Your Deposit Faster
If you are still in the savings phase, these practical approaches can accelerate your timeline:
Open a dedicated high-interest savings account. Keep your deposit money separate from everyday spending. Many online savings accounts are currently offering rates of 4.5–5.5% per annum.
Track your savings-to-purchase ratio. Property prices move, which means your target moves. A $600,000 property rising 6% becomes $636,000 — and your 20% target jumps by $7,200. Check your position regularly using a savings calculator.
Understand what counts as genuine savings. Most lenders require your deposit to consist of at least 3 months of genuine savings in your name — gifts from parents, FHOG proceeds or sale proceeds from other assets are treated differently. Check your lender's policy early.
Consider a guarantor loan. If a parent or close family member owns property in Australia, they may be able to use their home equity as security for part of your loan, allowing you to borrow more with a smaller deposit and avoid LMI entirely.
Factor in the First Home Super Saver Scheme (FHSS). You can make voluntary contributions into your superannuation and later withdraw them (up to $50,000) for a first home deposit. Contributions are taxed at the concessional rate of 15% rather than your marginal rate, which can meaningfully accelerate savings for many buyers.
Frequently Asked Questions
How much deposit do I need for a $700,000 house in Victoria?
At 5% you need $35,000. At 10% you need $70,000. At 20% you need $140,000. If the property is new and you qualify for the First Home Guarantee, you could buy with $35,000 deposit and pay no LMI. Add around $30,000–$40,000 in stamp duty and other costs unless you qualify for the first home buyer stamp duty exemption (which only applies to properties up to $600,000 — at $700,000 you would receive a partial concession).
Can I buy a house in Victoria with a 5% deposit?
Yes. Most lenders accept a 5% deposit but will charge LMI unless you qualify for the First Home Guarantee scheme. Under that scheme, eligible first home buyers can purchase with a 5% deposit and pay no LMI. Income and property price caps apply.
Do I pay stamp duty as a first home buyer in Victoria?
Not necessarily. If you are buying a property valued at $600,000 or under, you pay zero stamp duty as a first home buyer. Between $600,001 and $750,000, a sliding concession applies. Above $750,000, full stamp duty applies.
Is the First Home Owner Grant $10,000 or $20,000 in Victoria?
It is $10,000 statewide in 2026. A higher $20,000 regional grant existed in previous years but has since reverted to the standard $10,000 rate. The grant only applies to new homes valued at $750,000 or under.
Can I combine the FHOG with the stamp duty exemption?
Yes — and this is one of the most powerful combinations available in Victoria. On a new property under $600,000, you can receive the $10,000 cash grant AND pay zero stamp duty. You can also stack the First Home Guarantee (no LMI on 5% deposit) on top of both.
What is the minimum deposit for a first home buyer in Victoria without any government scheme?
Most lenders require a minimum 5% deposit. With a 5% deposit and no government scheme, you will need to pay LMI. To avoid LMI without a government scheme, you need a 20% deposit or a guarantor.
What is the Help to Buy scheme and is it available in Victoria?
Help to Buy is a federal shared equity scheme launched in December 2025. The government contributes up to 40% of the purchase price of a new home or 30% of an existing home, and you buy with a 2% deposit. It is available in Victoria through Commonwealth Bank and Bank Australia. Income caps are $90,000 for singles and $120,000 for couples.
Does the First Home Guarantee have a limit on places in 2026?
No. From 1 October 2025, the cap on annual places was removed. Eligible buyers can now access the scheme without competing for a limited number of spots.
Can I use gifted money from my parents as my deposit?
Some lenders accept gifted funds as part or all of your deposit, provided the gift is documented with a statutory declaration confirming it does not need to be repaid. However, most lenders require at least 3–5% in genuine savings (held in your account for at least three months). Check your specific lender's policy before planning around a gifted deposit.
What is LMI and can I avoid it?
Lenders Mortgage Insurance protects your lender if you default. It is charged when your deposit is below 20% of the purchase price. You can avoid LMI by saving a 20% deposit, using the First Home Guarantee scheme (5% deposit), using the Family Home Guarantee or Help to Buy (2% deposit), using a guarantor loan, or qualifying for a professional LMI waiver through certain lenders.
Final Word
The question of how much deposit you need to buy a house in Victoria does not have a single answer — but the realistic minimum for most buyers is somewhere between $30,000 and $50,000 for a property in the $550,000–$650,000 range, once grants and concessions are applied.
The biggest mistake Victorian buyers make is assuming they need 20% before they can do anything. In 2026, with the First Home Guarantee, Help to Buy, the stamp duty exemption and the FHOG all available to stack on top of each other, many buyers are entering the market years earlier than they thought possible.
The best next step is to understand your borrowing capacity alongside your deposit position. Use our mortgage repayment calculator to model what your monthly repayments would look like at different deposit levels and loan amounts — and then speak to a licensed mortgage broker who can confirm which schemes you qualify for.
This article is general information only and does not constitute financial advice. Government scheme eligibility rules and property price thresholds can change. Always verify current details with the State Revenue Office Victoria (sro.vic.gov.au) and Housing Australia (housingaustralia.gov.au) before making financial decisions.