“The minimum deposit for a $700,000 home is $35,000 when using the First Home Guarantee. While many quote a 20% figure of $140,000, it is often unnecessary for eligible buyers.”
The deposit you need for a $700,000 home depends on which route you take into the market. There are now four realistic options for first home buyers in 2026, each with a different deposit requirement.
Option 1: First Home Guarantee (5% deposit)
$35,000 deposit. The government guarantees the remaining 15% to the lender, eliminating LMI. Income caps were removed in October 2025. A $700,000 purchase is within the scheme’s price caps in most cities. This is the most common entry point for eligible first home buyers in 2026.
Option 2: Help to Buy (2% deposit)
$14,000 deposit. The government takes a 30% equity stake in the property — meaning you purchase 70% initially. Your loan is smaller, your repayments are lower, and you buy out the government’s share over time. For buyers with very limited savings, this is a meaningful option.
Option 3: Standard 20% deposit
$140,000. No LMI, full lender choice, lowest loan amount and repayments. The advantages are real — but the savings timeline at $140,000 is 5–8 years for most households, during which property prices move. This option is most appropriate for buyers who are not eligible for schemes, or who have already accumulated significant savings.
What else you need beyond the deposit
On a $700,000 purchase, allow approximately $15,000–$25,000 for stamp duty (varies by state and first home buyer concession eligibility), conveyancing ($1,500–$3,000), building and pest inspection ($400–$800), and lender establishment fees. The deposit is the largest single cost — but it’s not the only one.
→ You may wish to speak with a licensed mortgage broker to assess your personal circumstances. This is general information only. Individual circumstances vary and scheme details change regularly. Verify current eligibility, caps, and terms with official sources before making decisions. Speak with a licensed mortgage broker for advice tailored to your situation. All loans are subject to lender approval.
Sources: Housing Australia, First Home Guarantee 2025–26 (housingaustralia.gov.au); Housing Australia, Help to Buy Scheme (firsthomebuyers.gov.au); State Revenue Office Victoria, First Home Buyer Duty Exemption (sro.vic.gov.au, updated 21 May 2026); ASIC MoneySmart, Stamp Duty Calculator.
