How much deposit do I actually need to buy a home?
Twenty per cent of the purchase price plus costs is the figure that avoids lenders mortgage insurance at almost every lender. On a $800,000 home that is $160,000 plus stamp duty and fees, which for a first home buyer in NSW is close to zero and for anyone else is around $31,000.
Below twenty per cent you can still buy. With ten per cent you pay LMI (roughly $14,000 to $16,000 on that purchase), unless a lender offers a waiver for your profession. With five per cent you can use the First Home Guarantee if you qualify, or pay a much larger LMI premium. Some lenders require part of the deposit to be genuine savings held for three months; gifts and windfalls are accepted more widely than they used to be.
Whichever route you take, borrowing power is usually the real limit at low deposits. Borrowable's check runs both sides and shows which one is binding for you.
Want the number for your situation? The first home buyer check asks the same questions Joshua would and shows the working.
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Related
How much can I borrow on a $90,000 salary?
A single applicant on $90k with no debts and no dependants typically lands in the $380,000 to $440,000 range, and here is what moves it.
Does HECS affect how much I can borrow for a home loan?
Yes. HECS reduces your take-home pay, and lenders assess take-home pay. Here is how much it costs and what changed in 2025.
How does the 5% deposit First Home Guarantee work?
The government guarantees the gap so you avoid LMI with a 5% deposit. Since October 2025 there are no income caps and no place limits; price caps still apply.