How much do I need for a deposit?

The headline number is 20%, but most first home buyers settle with 5-10% plus LMI or a Home Guarantee Scheme spot. Here's what each path looks like.

5 min read·Reviewed 10 July 2026·Ratesniffers Editorial Team

How much deposit do I need in dollars?

On a $700K property: 20% deposit = $140K cash + ~$30K stamp duty (state-dependent) + $3K conveyancing + $1K B&P + buffer = roughly $180K all-in. Most first-home buyers don't have that.

5% deposit = $35K cash, plus stamp duty exemption in most states for FHBs under the duty threshold (~$650K-$800K depending on state), so the all-in cash needed is closer to $45K. The trade-off: LMI, unless you qualify for the First Home Guarantee (open to all eligible first home buyers since 1 October 2025, with income caps and place limits removed and property price caps raised), and a marginally higher rate.

Ratesniffers tracked this rate gap live on 10 July 2026: the cheapest variable owner-occupier rate at 80% LVR (a 20% deposit) was 5.89% p.a., against 5.94% p.a. for the cheapest rate available at 95% LVR (a 5% deposit), a real but modest 5 basis point difference, well short of the higher premium many borrowers expect to pay for a smaller deposit.

Can my parents gift me the deposit?

Most lenders require 5% "genuine savings", money you've saved over 3+ months in your name. Gifted funds from parents are accepted but usually need to sit on top of the genuine savings minimum. A statutory declaration from the gifter confirming it's a non-repayable gift is standard.

What counts as a deposit?

Cash savings, term deposits, share portfolio (lenders typically apply a discount), proceeds from selling another property, gifted funds, FHSSS withdrawals (First Home Super Saver Scheme), and government grants. Crypto holdings are accepted by very few lenders, and only after being converted to cash and held for 3+ months.

For how deposit size feeds into LVR, LMI thresholds, and the Home Guarantee Scheme, see Ratesniffers' deposit, LVR and LMI hub.

How much do I need for a deposit?: frequently asked questions

How much deposit do I need in dollars?

On a $700K property: 20% deposit = $140K cash + ~$30K stamp duty (state-dependent) + $3K conveyancing + $1K B&P + buffer = roughly $180K all-in. Most first-home buyers don't have that. 5% deposit = $35K cash, plus stamp duty exemption in most states for FHBs under the duty threshold (~$650K-$800K depending on state), so the all-in cash needed is closer to $45K. The trade-off: LMI, unless you qualify for the First Home Guarantee (open to all eligible first home buyers since 1 October 2025, with income caps and place limits removed and property price caps raised), and a marginally higher rate.…

Can my parents gift me the deposit?

What counts as a deposit?

References

ASIC MoneySmart: Saving for a home deposit, Deposit-size consumer guidance
Housing Australia: First Home Guarantee, 5% deposit pathway for eligible FHBs
APRA: Macroprudential policy framework, How regulator-set lending standards interact with deposit requirements

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