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.
The maths
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 (or a Home Guarantee Scheme spot) and a marginally higher rate.
Genuine savings vs gifted 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 deposit-eligible
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.
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