You Probably Don’t Need a 20% Deposit
The “20% deposit” rule is the most persistent myth in Australian home buying. Between government schemes, guarantor loans and lender policies, most of the buyers we help get in with far less — some with no deposit at all.
Every extra year spent saving is another year of paying rent while prices move. The real question isn’t “how do I save 20%?” — it’s “which low deposit route fits my situation?”. Start with the minimum deposit you actually need and what counts in a house deposit in Queensland, then work down the ladder below. The deposit calculator will show you where you stand today.
The Deposit Ladder: From 0% to 12%
Think of your options as rungs on a ladder, from smallest deposit to largest:
0% depositGuarantor home loan
A family member’s property secures part of your loan — potentially no deposit and no LMI. See also no deposit home loans and buying with your parents.
2% depositHelp to Buy
The federal shared-equity scheme: the government contributes an equity share so eligible buyers can purchase with as little as 2% deposit. Also see support for single parents and lower-income buyers.
5% deposit5% Deposit Scheme
Under the Home Guarantee Scheme the government guarantees part of your loan, so eligible buyers purchase with a 5% deposit and pay no LMI.
8–12% depositStandard loan with LMI
Pay (or capitalise) Lenders Mortgage Insurance to buy now rather than keep saving — sometimes the cheaper path in a rising market. Weigh it against an LMI waiver if your profession qualifies.
Scheme places, price caps and eligibility rules change — the details in each linked guide are the ones to rely on, and our brokers check the current rules before any application goes in.
Genuine Savings: The Rule That Trips Buyers Up
Most lenders want to see that at least part of your deposit is genuine savings— money you’ve saved (or held) over time, rather than a sudden windfall. Gifts, tax refunds and even inheritance are treated differently from lender to lender, and rent payment history can sometimes stand in for savings. This is one of the most common reasons low-deposit applications get declined, and one of the easiest to plan around ahead of time.
Also remember the deposit isn’t the only upfront cost — stamp duty usually can’t be added to your loan, so budget for it separately (first home buyers often pay reduced or zero stamp duty).
Using Your Super to Build a Deposit
The First Home Super Saver Scheme (FHSS) lets you make voluntary super contributions and later withdraw them — up to the scheme cap — for your first home deposit, usually with a meaningful tax advantage over saving in a bank account. We’ve covered how to save a deposit inside super and the ways super can be used to buy a house in detail.
Still Saving? Do It the Fast Way
If you’re building your deposit the traditional way, a plan beats willpower. Start with how to save for a house deposit, the realities of saving while renting, and our playbook for saving a deposit in 12 months.
Not sure which rung of the ladder you’re on? That’s literally our job. The Hunter Galloway team helps low-deposit buyers every day — we’ll tell you honestly whether you can buy now, or exactly what needs to change so you can. Get in touch or call 1300 088 065.