How Much Deposit Do I Actually Need to Buy My First Home Right Now?
The deposit that gets you into the market isn’t always the deposit that sets you up well once you’re in it. Both things deserve attention before you pick a number.
The minimum is 5% — and for eligible first home buyers in 2026, that 5% can come with no Lenders Mortgage Insurance. But ‘minimum deposit’ and ‘right deposit’ are two different questions, and confusing them is one of the more common mistakes buyers make.
The 5% Deposit Route
Under the First Home Guarantee, eligible buyers can purchase with a 5% deposit and no LMI. No income caps apply in 2025–26. On a $700,000 property, 5% is $35,000 — plus stamp duty, legal fees, and moving costs.
The 20% Deposit Route
No LMI, widest lender choice, lower repayments because you’re borrowing less. On a $700,000 property that’s $140,000 — plus costs. In most major cities that’s 7–10 years of saving.
What You Also Need Beyond the Deposit
- Stamp duty: $0 to $30,000+ depending on state and price (concessions apply for many first home buyers)
- Conveyancing fees: $1,500–$3,000
- Building and pest inspection: $400–$700
- Loan application and establishment fees: varies by lender
- Moving costs, connection fees, immediate repairs
The Number Most Buyers Miss
Lenders require the deposit plus sufficient funds to cover purchase costs. Arriving at a lender with exactly 5% saved but nothing for stamp duty is a common stumble. The working total for a 5%-deposit purchase in most states is closer to 7–8% of the purchase price.
You may wish to speak with a licensed mortgage broker to assess your personal circumstances.
This is general information only. Deposit requirements, stamp duty, and costs vary by state and lender. Speak with a licensed mortgage broker for a full cost picture specific to your situation. All loans are subject to lender approval.
Sources: Housing Australia, First Home Guarantee 2025–26; State Revenue Offices (stamp duty by state); ASIC MoneySmart, Buying a Home 2025.
