How Much Deposit Do You Actually Need?

The biggest misconception

Most people still believe you need a 20% deposit to buy a home.

In reality, many buyers get in with far less — but the structure matters.

What we'll cover

• Minimum deposit options

• What lenders actually require

• How to minimise upfront costs

The standard benchmark

20% deposit = no LMI (Lenders Mortgage Insurance)

But this is not a requirement — it's just the cleanest scenario.

Lower deposit options

5%–10% deposit

• Possible with many lenders

• Usually involves LMI

Government schemes / support

Depending on your situation:

• First Home Guarantee schemes

• First Home Owner Grant (FHOG)

What lenders actually look for

It's not just the amount — it's the quality:

• Genuine savings history

• Stability of funds

• Clear source of deposit

What this means for you

The real question isn't: "Do I have 20%?"

It's: "Do I have enough to proceed safely?"

Common mistakes

• Waiting years unnecessarily

• Using all savings and leaving no buffer

• Not understanding how grants work

Next step

If you want to understand how much you actually need based on your situation, we can map it out clearly.