House Deposit Calculator Australia

How much deposit do you need for a house?

A house deposit is the share of the price you pay from your own money, with the rest covered by a home loan. In Australia the number most buyers aim for is 20% of the property price, because a 20% deposit usually keeps you clear of Lenders Mortgage Insurance. On a $700,000 home that is $140,000. The calculator above shows the deposit at 20%, 10% and 5% side by side, so you can see the whole picture rather than a single figure.

The maths is simple: deposit = property price × deposit percentage. A 20% deposit on a $500,000 home is $100,000; on an $800,000 home it is $160,000. You can buy with less than 20%, and many lenders accept 10% or even 5%, but a smaller deposit means a larger loan and, in most cases, Lenders Mortgage Insurance added on top.

Deposit at 5%, 10% and 20%

The right deposit is a trade-off between getting in sooner and the cost of borrowing more. Here is how the three common levels compare on a $700,000 property:

• 20% is $140,000: the LMI-free target, with access to most lenders and their sharper rates.
• 10% is $70,000: a common entry point, but a deposit under 20% usually adds Lenders Mortgage Insurance.
• 5% is $35,000: the low-deposit floor for many loans, with the most LMI, unless you use a scheme like the First Home Guarantee.

A smaller deposit gets you into the market faster, but you borrow more, pay more interest over the life of the loan, and usually carry an LMI premium. Our LVR calculator shows exactly where a given deposit lands against the 80% line where LMI kicks in.

Why 20% is the number to aim for

The 20% deposit matters because of Lenders Mortgage Insurance (LMI). When your deposit is below 20% of the price, most lenders add LMI, a one-off cost that protects the lender if you cannot repay the loan, not you. On a large loan it can run into several thousand dollars or more. Reach a 20% deposit and you generally sidestep it, which is why it is the figure most first home buyers work toward.

There are ways in with less. Eligible first home buyers can use the First Home Guarantee to buy with as little as a 5% deposit without paying LMI, and a first home owner grant or a family guarantor can top up a deposit. Remember the deposit is only part of the cash you need. Stamp duty and other upfront costs sit on top, which is where our stamp duty calculator comes in.

How long will it take to save a deposit?

Once you know the deposit you need, the next question is how long it takes to get there. Take a $140,000 target for a 20% deposit on a $700,000 home. If you already have $40,000 saved, the gap is $100,000, and putting away $2,000 a month closes it in 50 months, a little over four years. Save more each month, start from a higher balance, or aim for a smaller deposit and the timeline shortens.

The calculator above works this out from your own figures, and can factor in the interest your savings earn along the way. It shows the gap to your target, the number of months to reach it, and a timeline of your balance climbing to a full deposit.

How to use this calculator

1. Enter the property price, the home you want to buy or your target.
2. Choose your deposit target: 5%, 10%, 20%, or a custom percentage.
3. Add what you have saved so far and how much you can put away each month.
4. Add an interest rate on your savings if you want to factor it in, or leave it at zero.
5. Read the deposit you need at the top, the deposit at each level, the gap, and how long it takes to save.

Frequently asked questions