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Deposit Calculator
How much deposit do you need to buy a home in Australia — including LMI, stamp duty, and upfront costs?
How much deposit do you need to buy a home in Australia — including LMI, stamp duty, and upfront costs?
Estimates only. LMI and stamp duty vary by lender, state, and buyer status. Use the dedicated calculators for exact figures.
Last reviewed 12 July 2026 · rates and thresholds verified against official FY2026-27 sources.
The deposit is the slice of the purchase price you pay from your own savings; the rest is borrowed from a lender. In Australia the figure most people aim for is 20% of the property price, because that is the threshold at which most lenders stop charging Lenders Mortgage Insurance (LMI). But 20% is a benchmark, not a legal minimum — plenty of buyers get into the market with 10%, 5%, or even less when a government scheme fills the gap.
Your deposit matters for two reasons. First, it sets your loan-to-value ratio (LVR) — the size of your loan as a percentage of the property's value — which drives whether you pay LMI and often the interest rate you are offered. Second, the deposit is only part of the cash you actually need on settlement day. Stamp duty, conveyancing, building and pest inspections, loan establishment fees, and LMI (if it applies) all sit on top. This calculator brings those pieces together so the number on screen reflects the real cash you need in the bank, not just the headline deposit.
The tool starts with your target property price and your chosen deposit percentage, then layers the upfront costs on top. In plain words:
LMI premiums are not legislated — they are set by the insurers (such as Helia or QBE) and passed on by the lender, so two banks can quote different figures on the same loan. Stamp duty rates and thresholds are set by each state and territory revenue office and change periodically. Treat both as solid estimates for planning, then confirm the exact numbers with the relevant authority before you commit.
Assume a first home buyer targeting a $650,000 property in Queensland. Here is how the three common deposit levels compare. (Figures are illustrative; stamp duty and LMI vary with your state, lender, and eligibility.)
The pattern is clear: a smaller deposit lowers the savings hurdle but increases the loan, the interest paid over time, and the LMI cost. A larger deposit costs more up-front but reduces lifetime interest and removes LMI. The right balance depends on how quickly you can save versus how fast prices are moving in your target area.
A frequent mistake is saving exactly 20% and then being caught short at settlement. As a rough guide, budget the deposit plus another 4–6% of the purchase price for transaction costs in most states, the largest of which is usually stamp duty. The main extras to plan for are:
Several government programs are designed to help buyers in with less. As at the 2025–26 financial year, the headline options include:
Most lenders also expect genuine savings — typically at least 5% of the price accumulated steadily over three or more months — to show you can manage repayments. Gifts and inheritances may not count as genuine savings on their own.
This tool estimates the up-front cash you need: the deposit, an estimate of stamp duty, indicative legal and inspection costs, and LMI where it applies. It is a planning aid for sizing your savings goal. It does not assess how much you can borrow (serviceability), it does not calculate exact LMI premiums or precise state stamp duty to the dollar, and it does not confirm your eligibility for any government scheme. Lenders also apply an APRA serviceability buffer of around 3% above the actual rate when testing whether you can afford repayments, which can matter as much as your deposit. For exact figures, use a dedicated stamp duty or LMI calculator and speak with a licensed mortgage broker or lender.
No. Twenty percent is the level at which LMI is usually avoided, but you can buy with less. Many buyers use a 10% deposit and pay (or capitalise) LMI, and eligible first home buyers can purchase with 5% under the First Home Guarantee with no LMI. The trade-off is a larger loan and more interest over the life of the mortgage.
Lenders Mortgage Insurance is a one-off premium charged when your deposit is below 20% (LVR above 80%). It protects the lender if you default and the sale doesn't cover the debt — it is not insurance for you. The premium rises sharply as your deposit falls, which is why crossing the 20% line saves so much.
Often yes. Many lenders let you capitalise LMI onto the loan, and some allow certain fees to be added, provided the total stays within their maximum LVR. This reduces the cash you need at settlement but increases your loan balance and the interest you pay, so weigh it against saving a larger deposit.
Yes, in most cases stamp duty is separate cash you need on top of the deposit. It is a state tax that varies by state, price, and buyer type. First home buyers often qualify for concessions or exemptions up to certain price thresholds, so check your state or territory revenue office (for example, Revenue NSW, the State Revenue Office Victoria, or Queensland Revenue Office) for the rules that apply to you.
This page provides general information only and is not personal financial advice. Figures are estimates and time-sensitive thresholds change — always confirm current rules with official sources such as Moneysmart (moneysmart.gov.au), the ATO, and your relevant state revenue office before making decisions.