How much deposit do you actually need in Australia right now?

Someone at a barbecue has already told you that you need twenty per cent or you cannot buy — tidy story, not always true for your postcode, your lender, or your occupation type. You will hear "you need twenty per cent" as folklore. In practice, Australian purchases depend on loan-to-value ratio (LVR), whether LMI applies, lender appetite for low-deposit files, first-home programs, and your total funds to complete — stamp duty, legal, moving, buffer — not just the slice labelled deposit.

Below separates deposit from the rest of the cash picture, outlines LMI and genuine savings at a high level, and flags investor differences. Confirm numbers with your broker and conveyancer — this is orientation, not a personal recommendation. Read next: costs beyond the deposit, low deposit sequence, first home buyers.

Deposit versus funds to complete

Deposit is typically your equity slice at purchase; funds to complete adds duty (or shortfall after concessions), conveyancing, registrations, lender charges, LMI if capitalised or paid upfront, moving, and smart post-settlement buffer. Spreadsheets that stop at deposit percentage miss where deals become tight.

General information only. This article does not consider your objectives or situation. Speak with a mortgage broker or qualified adviser before acting.

LMI — what it is, bluntly

Lender's mortgage insurance protects the lender if you default — not you. Above common LVR cut-offs (often around 80% for many owner-occupied paths without other structure), it may apply. Premiums can be paid upfront or capitalised — product dependent. It does not remove genuine savings expectations where policy demands a track record.

Genuine savings and gifts

Some lenders want to see funds accumulated or held in a documented way — wages, savings trail, realised asset sales — rather than unexplained lump sums. Gifts may work with declarations and donor identity checks; rules are lender-specific — align the story before you lean on a pre-approval built on different assumptions.

First-home programs and concessions

Federal and state initiatives can shift minimum cash — eligibility hinges on income and price caps, property type, prior ownership, residency. The First Home Guarantee (5% deposit, no LMI for eligible buyers) is the headline federal pathway for many first home buyers — still verify caps and places for your year. Schemes and thresholds change on budget nights — confirm each purchase, not your colleague's experience from last year.

Investor purchases

Investment lending often carries different LVR thresholds and overlays; some postcodes or portfolio concentrations attract tighter treatment. Model deposit alongside rental stress tests — not just price × percentage from social media.

Off-the-plan and deposit schedules

Developer timelines can park cash early relative to bank funding years later — understand valuation and settlement risk alongside your conveyancer; your broker aligns probable lender LVRs with those timelines.

Planning sequence

1. Duty estimate from official state tools via stamp duty.
2. Repayment comfort on repayment calculator with a buffer.
3. Add legal, lender, moving — the costs article above.

Get numbers you can trust

Apply or contact — Bishnu Adhikari anchors deposit and funds to complete before you offer.

General information only. This article does not consider your objectives or situation. Speak with a mortgage broker or qualified adviser before acting.