How Much Deposit Do I Need To Buy a House In Australia?


It is commonly accepted that to avoid paying Lenders Mortgage Insurance (LMI) on a home loan you must contribute a minimum 20% deposit of the property’s purchase price.

A deposit of 20% equates to an Loan to Value Ratio (LVR) of 80%. If your loan is above 80% LVR then in most cases (for example Medical professionals/graduates can borrow up to 90% LVR) you will be forced to pay LMI.

The highest LVR that is currently available at time of writing is 95% LVR, requiring a minimum 5% deposit.

The lowest deposit required to purchase a property is 5%. In most cases it is mandatory that you provide evidence of funds to complete. The 5% deposit must be genuine savings saved/held over a minimum 3 month period and you will also need proof of funds to complete the stamp duty, title search, etc.
Acceptable forms of savings can include:
– Funds in bank accounts/term deposits
– Shares
– Equity in residential property
– Sale proceeds from a residential property
– Deposit paid for the property more than 3 months ago

See a mortgage broker today to find out more information and talk about your options.

PLEASE NOTE: All information is correct at the time of writing and could change without notice. This is all subject to be able to service a loan with enough income and a clear credit history.

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