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

To buy Melbourne's median house (about $915,000) you need roughly $46,000 for a 5% deposit or $183,000 for 20%. Below 20% you'll usually pay lenders mortgage insurance (LMI). An eligible first home buyer can avoid that with 5% under the Australian Government 5% Deposit Scheme, because a typical Melbourne house sits just under the scheme's $950,000 cap. Stamp duty comes on top. At that price it's about $50,000 even for a first home buyer, because Victoria's first home relief stops at $750,000.

What you need at Melbourne and regional prices

Based on Cotality's median values at 30 September 2026:

Property	Median value	5% deposit	10% deposit	20% deposit
Melbourne house	$915,119	$45,756	$91,512	$183,024
Melbourne unit	$624,740	$31,237	$62,474	$124,948
Regional Victoria house	$665,829	$33,291	$66,583	$133,166

Source: Cotality Home Value Index, results to 30 September 2026. Melbourne dwelling values were down 6.2% over the year.

The 5% Deposit Scheme in Victoria

Under the 5% Deposit Scheme, a participating lender can lend you up to 95% of the price (98% for single parents) with no LMI, because the government guarantees part of the loan. Since 1 October 2025 there are no income caps and no limit on places. The Victorian price caps are:

$950,000 in Melbourne and Geelong;
$650,000 in the rest of Victoria.

That makes the scheme a good fit for Melbourne. The median house ($915,119) and the median unit ($624,740) are both under the cap. In regional Victoria the median house ($665,829) is just over the $650,000 cap, so scheme buyers there need to buy below the median. Geelong is the exception, with the $950,000 cap.

You need to be an Australian citizen or permanent resident, live in the home, and be a first home buyer (or not have owned property in Australia for 10 years).

Stamp duty: the cost that catches Victorian buyers out

Victoria's duty is among the highest in the country, because the 6% rate applies from $130,000 and a flat 5.5% of the whole price applies from $960,000 (SRO rates). First home buyers get relief only at lower prices:

$600,000 or less: no duty (SRO first home buyer exemption). This covers new and established homes, and vacant land you'll build on.
$600,001 to $750,000: reduced duty, falling to full duty at $750,000.
Above $750,000: full duty.

What that means in dollars:

Price	Duty, not a first home buyer	Duty, first home buyer
$580,000	$29,870	$0
$700,000	$37,070	about $24,700 (sliding scale)
$800,000	$43,070	$43,070
$915,119 (Melbourne median house)	$49,977	$49,977

Worked out with our stamp duty calculator at the current general rates. The first home figure at $700,000 is an estimate. Other owner-occupiers buying a home up to $550,000 get a separate principal place of residence concession.

Off-the-plan apartments and townhouses: until 21 April 2027, a temporary concession lets any buyer of an off-the-plan dwelling in a strata subdivision deduct construction costs incurred after the contract date from the dutiable value. That can cut the duty a lot. It's open to investors as well as first home buyers.

The $10,000 First Home Owner Grant

Victoria pays a $10,000 First Home Owner Grant when you buy or build a new home valued up to $750,000, anywhere in the state. Established homes don't qualify. You must live in the home as your principal place of residence for 12 months.

Help to Buy: a 2% deposit, with a co-owner

Under the federal Help to Buy scheme, the government contributes up to 40% of the price of a new home or 30% of an existing one and owns that share, so you need a 2% deposit and a smaller loan. Your taxable income must be at or below $103,000 (single) or $165,000 (joint applicants and single parents). When you sell, the government takes its share of the sale price, including any growth.

Worked example: a first home in Geelong

A first home buyer signs for a new $580,000 off-the-plan townhouse in Geelong:

	Amount
5% deposit under the 5% Deposit Scheme (within Geelong's $950,000 cap)	$29,000
LMI	$0 (replaced by the government guarantee)
Stamp duty	$0 (first home buyer, under $600,000), saving $29,870
First Home Owner Grant	$10,000 received (new home under $750,000)

On top of the $29,000 deposit, budget for conveyancing, registration fees and moving costs. The $10,000 grant is usually paid at settlement, so it helps with those costs, but ask your lender whether it can count towards your deposit.

Compare a Melbourne house at the $915,119 median. With 5% under the scheme you'd need $45,756, plus about $50,000 in stamp duty, because no first home relief applies at that price. Most of the cash goes on duty, not the deposit.

Other costs to budget for

Stamp duty, as above.
Conveyancing: quotes vary, so get two or three before you buy.
Building and pest inspection for an established home.
Land Use Victoria registration fees for the transfer and the mortgage.
Lender fees, and LMI if you're not using the 5% Deposit Scheme. Ask the lender for an LMI quote, because premiums vary by insurer.
Moving costs and a buffer of a few months' repayments.

Frequently asked questions

How much deposit do I need for a $700,000 house in Victoria?

$35,000 for 5%, $70,000 for 10% or $140,000 for 20%. An eligible first home buyer can use the 5% Deposit Scheme with $35,000 and no LMI, anywhere in Melbourne or Geelong (cap $950,000), but not elsewhere in regional Victoria, where the cap is $650,000. Stamp duty is $37,070, or about $24,700 for a first home buyer, because the full exemption only applies up to $600,000.

Do first home buyers pay stamp duty in Victoria?

Not on a home up to $600,000. Between $600,001 and $750,000 a first home buyer pays reduced duty, and above $750,000 full duty applies. The exemption covers new and established homes, and vacant land you'll build a home on.

Is the First Home Owner Grant available in metropolitan Melbourne?

Yes. The $10,000 grant applies anywhere in Victoria, but only to a new home valued up to $750,000. Buyers of established homes don't get the grant, although they may still get the stamp duty exemption.

Can I buy in Victoria with a 5% deposit and no LMI?

Yes, under the 5% Deposit Scheme if you're an eligible first home buyer and the price is within the cap: $950,000 in Melbourne and Geelong, $650,000 elsewhere in Victoria. There have been no income caps since 1 October 2025.

Can my parents help with the deposit?

Yes, either with a gift or as guarantors. Lenders treat a gift differently from your own savings, so many still want part of the deposit to be money you've saved yourself, and policies vary. A family guarantee uses equity in your parents' property as extra security, which can let you borrow more than 80% without LMI. Ask your lender or broker what they accept before you sign a contract.

Related calculators and guides

Stamp Duty Calculator: Victorian duty, first home and PPR concessions
Mortgage Calculator: repayments at different deposit sizes
Borrowing Power Calculator
How much deposit you need to buy a house in Australia
First home buyer guide: grants and schemes in every state

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.