Minimum Deposit for a Home Loan in Australia [2026 Guide]

You may be able to buy with no deposit of your own using a guarantor home loan. Other options can start from 2% or 5%, while a 20% deposit usually avoids lenders mortgage insurance (LMI).

A guarantor uses their property as extra security; they do not hand you the deposit as cash. We still need to check your repayments, the guarantor’s security and how the buying costs will be paid.

The right deposit depends on what you can afford now and what the loan will cost over time. Here’s how the options compare.

Your deposit is the part of the purchase price you contribute. If an $800k home is bought with an $80k deposit, the base loan is $720k before any LMI or fees are added.

Lenders compare the loan with the lower of the purchase price and their accepted valuation. This is called the loan-to-value ratio, or LVR. A 10% deposit produces a 90% LVR when the purchase price and valuation match.

The deposit you agree to pay the seller is separate from the lender’s deposit requirement. Even with a guarantor loan, your contract may require a payment before settlement. Agree how that payment will be funded and when it is due before signing. Our Queensland house deposit guide explains the timing.

A low-deposit approval can still fail at settlement if every dollar has been allocated to the deposit. Keep the deposit separate from the other costs and the money you want left after buying.

In Queensland, eligible first home buyers can receive a full transfer duty concession on a new home or residential vacant land for contracts from 1 May 2025, with no property value cap. For an established first home, the full concession applies up to $700k and reduces between $700k and $800k. Check the contract date and property use with your solicitor.

Our Queensland house deposit guide and stamp duty guide explain how the deposit and buying costs fit together.

Not always. On a higher LVR application, lenders commonly want at least 5% of the purchase price to be shown as genuine savings or an accepted equivalent. Money held or built up over at least 3 months is a common test, but the exact rule and exceptions differ.

A non-repayable gift, inheritance, sale proceeds, grant or tax refund can still help with the purchase. The question is whether the chosen lender accepts it and whether part of the application must still demonstrate a savings history. Read our genuine savings guide before assuming gifted funds need to sit untouched for 3 months.

With less than a 20% deposit, you may need to pay lenders mortgage insurance or a lender low-deposit fee. LMI protects the lender if the property is sold and the debt is not fully repaid. It does not make your repayments if you lose your job.

The premium is not the same everywhere. It depends on the loan amount, LVR, lender and insurer. Many lenders let you add it to the loan, subject to a maximum total LVR. That reduces the cash needed now but increases the debt and the interest paid.

The interest rate can also be higher at a higher LVR tier. Compare the rate, comparison rate, LMI or lender fee and repayments for the same property and loan amount, not the advertised rate alone.

Eligible first home buyers can purchase with a minimum 5% deposit. Eligible single parents or legal guardians can use a minimum 2% deposit. The current scheme has no income caps, unlimited places and no LMI, but the property must sit within the location price cap and the loan must come from a participating lender.

In Queensland, the current property cap is $1m for Brisbane, the Gold Coast and Sunshine Coast, and $700k elsewhere. Read our full 5% Deposit Scheme guide for the eligibility and owner-occupier rules.

Help to Buy is shared equity, not a grant. You need a minimum 2% deposit and an eligible loan. The Australian Government may contribute up to 30% of an existing home or 40% of a new home, reducing the mortgage required.

For an $800k existing home, the maximum 30% contribution is $240k. With a 2% deposit of $16k, the base mortgage would be $544k before buying costs.

For the 2026-27 financial year, taxable income must be no more than $103k for an individual, or $165k for joint applicants and single parents. The Queensland property cap is $1m in Brisbane, the Gold Coast and Sunshine Coast, and $700k elsewhere. Ongoing shared-equity rules also apply. Our Help to Buy guide explains what happens after purchase.

Queensland has continued the $30k First Home Owner Grant for eligible contracts signed from 1 July 2026 going forward. It applies to eligible new homes valued below $750k, including land. It is not available for an established home and does not replace the need to qualify for the loan.

Check the full conditions in our Queensland First Home Owner Grant guide.

Selected lenders waive LMI for eligible professions, but the job title alone is not enough. Registration, qualifications, income, loan purpose, property and maximum loan limits can all apply.

Doctors and dentists have several lender options. Lawyers and accountants can also have no-LMI pathways with a smaller deposit. Eligible nurses and midwives may have a 10% deposit option with lenders including Westpac and St George. See our doctor home loan guide, lawyer LMI waiver guide, accountant home loan guide and nurse home loan guide.

Our Westpac home loan review and St George home loan review explain the lender differences. Engineers should not assume they receive the same broad waiver. Their no-LMI options are much narrower.

Start with a target that includes buying costs and the amount you want left after settlement. Keep the money in an account where the savings history is easy to show, and avoid moving it through several accounts without a reason.

The First Home Super Saver Scheme lets eligible first home buyers count up to $15k of voluntary contributions from a financial year and up to $50k across all years, plus associated earnings under the release rules. Get tax advice and request the required determination before ownership transfers. Read our First Home Super Saver guide.

HECS does not change the deposit percentage, but it can reduce borrowing power. Some lenders may exclude HECS when the balance is expected to be cleared within 12 months, while other policies use different tests. Compare the loan result before paying off a large balance from your deposit. Our HECS and home loans guide explains the trade-off.

If the savings gap is the main issue, compare our no-deposit home loan guide, guarantor home loan guide and home loans for lower incomes.

We can compare the smallest deposit that works for you, the next deposit level that could reduce LMI or the rate, and a 20% deposit. A suitable guarantor may let you start without your own deposit.

For each option, compare how much you could borrow, the cash needed, repayments, rate, fees and useful features such as an offset. Then decide whether buying sooner is worth the extra cost. Use the deposit calculator as a starting point, and confirm the lender’s figures and buying costs before making an offer.