You Probably Don’t Need a 20% Deposit
A 20% deposit can reduce costs, but it is not the entry requirement many buyers assume it is. Government schemes, guarantor support and lender policies create several lower-deposit routes. The useful question is not simply “how do I save 20%?” but “which route fits my circumstances and total buying costs?”
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%
Compare the routes in deposit order. The smallest percentage is not automatically the best option: eligibility, guarantees, LMI and the loan’s ongoing terms all matter.
| Comparison | 0% deposit | 2% deposit | 5% deposit | 8–12% deposit |
|---|---|---|---|---|
| Path | Guarantor home loanA family member offers property security for part of the loan. | Help to BuyThe federal government contributes an equity share for eligible buyers. | 5% Deposit SchemeA government guarantee supports an eligible low-deposit purchase. | Standard loan with LMILenders Mortgage Insurance can support a purchase below a 20% deposit. |
| How it works | Family guaranteeMay remove the need for a cash deposit and LMI, subject to lender policy. | Shared equityThe buyer contributes at least 2%; income, property and other limits apply. | Government guaranteeEligible buyers can avoid LMI. The guarantee does not reduce the loan balance. | Insurance premiumThe premium may be paid upfront or added to the loan, depending on the lender. |
| Check first | Guarantee and lender fit
| Scheme eligibility
| Scheme eligibility
| Total cost
|
- Path
- Read guarantor guideGuarantor home loanA family member offers property security for part of the loan.
- How it works
- Family guaranteeMay remove the need for a cash deposit and LMI, subject to lender policy.
- Check first
- Guarantee and lender fit
- The guarantor understands the risk
- The lender accepts the structure
- Path
- Read Help to Buy guideHelp to BuyThe federal government contributes an equity share for eligible buyers.
- How it works
- Shared equityThe buyer contributes at least 2%; income, property and other limits apply.
- Check first
- Scheme eligibility
- Income and property limits
- Future shared-equity obligations
- Path
- Read 5% scheme guide5% Deposit SchemeA government guarantee supports an eligible low-deposit purchase.
- How it works
- Government guaranteeEligible buyers can avoid LMI. The guarantee does not reduce the loan balance.
- Check first
- Scheme eligibility
- Buyer and property rules
- Buying costs remain separate
- Path
- Check LMI waiversStandard loan with LMILenders Mortgage Insurance can support a purchase below a 20% deposit.
- How it works
- Insurance premiumThe premium may be paid upfront or added to the loan, depending on the lender.
- Check first
- Total cost
- Compare the premium and loan terms
- Check profession-based LMI waivers
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.