How Much Deposit Do I Need for My First Home in Australia?
This is the number one question first home buyers ask. The answer depends on which government schemes you use, whether you are willing to pay Lenders Mortgage Insurance (LMI), and which lender you choose.
Here is a clear breakdown of every option available in 2026. For a full guide to first home buyer loans including grants, schemes, and the application process, see our first home buyer loans page.
The standard answer: 20% to avoid LMI
Without any government schemes, most lenders require a 20% deposit to avoid paying Lenders Mortgage Insurance (LMI). On a $600,000 home, that is $120,000.
If you have less than 20%, you can still get a loan but you will typically need to pay LMI, which can add $5,000 to $30,000 to your upfront costs depending on the loan amount and your LVR.
With the First Home Guarantee: 5%
The First Home Guarantee is a federal government scheme where the government guarantees up to 15% of your loan. This means you can buy with just a 5% deposit and skip LMI entirely.
On a $600,000 home, that is $30,000 instead of $120,000. The scheme now has unlimited places and no income caps, making it accessible to a much wider range of buyers than in previous years.
You apply through a participating lender. Rovo Finance can check your eligibility and lodge the application for you.
With the Family Home Guarantee (single parents): 2%
Single parents with at least one dependent child can access the Family Home Guarantee, which allows purchases with as little as a 2% deposit and no LMI. On a $600,000 home, that is just $12,000.
With Help to Buy (shared equity): 2%
Under the Help to Buy scheme, the government contributes up to 30% of a new home’s purchase price (25% for existing homes). You need as little as a 2% deposit. When you sell, the government receives its proportional share. This scheme is means-tested and suited to lower-to-middle income earners.
But the deposit is not the only upfront cost
Many first home buyers focus entirely on the deposit and get caught out by the additional costs. Here is what else you need to budget for:
- Stamp duty: Varies by state. In NSW, first home buyers pay no stamp duty on properties up to $800,000 (new homes) or $650,000 (existing). In other states, concessions vary. If you are not exempt, stamp duty can be $15,000 to $30,000+.
- Conveyancing/legal fees: $1,500 to $3,000
- Building and pest inspection: $400 to $800
- Loan application fees: $0 to $600 depending on the lender
- Moving costs: $500 to $2,000
- Strata/body corporate search (if applicable): $200 to $400
As a rough guide, budget an extra $5,000 to $15,000 on top of your deposit for these costs (or more if stamp duty applies). We build a full cost estimate during your strategy call so there are no surprises.
Real examples: what $600,000 looks like with different deposit options
| Scenario | Deposit | LMI | Total upfront (approx.) |
|---|---|---|---|
| 20% deposit, no scheme | $120,000 | $0 | $125,000 – $135,000 |
| 10% deposit, no scheme | $60,000 | $10,000 – $15,000 | $75,000 – $85,000 |
| 5% deposit + First Home Guarantee | $30,000 | $0 | $35,000 – $45,000 |
| 2% deposit + Family Home Guarantee | $12,000 | $0 | $17,000 – $27,000 |
Figures are illustrative and assume NSW stamp duty exemption for a first home buyer. Actual costs depend on your state, property type, and lender. We provide a personalised estimate during your strategy call.
How to save your deposit faster
First Home Super Saver Scheme (FHSSS). Make voluntary contributions to your super fund, then withdraw up to $50,000 to put toward your deposit. Because super contributions are taxed at 15% instead of your marginal rate, you save faster. Rovo Finance can explain how this works alongside other schemes.
State-based grants. If you are buying a new build, the First Home Owner Grant (FHOG) can add $10,000 to $30,000 to your deposit depending on your state. See the full breakdown on our first home buyer page.
Family guarantor. Some lenders allow a parent or family member to use equity in their own property as security for your loan. This can allow you to buy with no cash deposit at all, though the guarantor takes on risk. We explain the trade-offs clearly.
Next steps
The deposit barrier is smaller than most people think, especially with the schemes available in 2026. Read our full first home buyer guide or book a free strategy call to get a personalised cost estimate for your situation.
Ready to take the first step?
FAQs
Not typically through government schemes, but a family guarantor arrangement can effectively allow a zero-deposit purchase. The guarantor uses equity in their own property as additional security for your loan. Talk to us about whether this suits your situation.
No. The guarantee covers the gap between your 5% deposit and the 20% the lender normally requires. You still borrow the same amount, you just avoid paying LMI. Your repayments are based on the full loan amount.
Yes, in most cases. You can stack the federal guarantee scheme with your state's FHOG and stamp duty concessions. This is where the savings really add up. We check every combination during your strategy call.