Most buyers don’t need a 20% deposit to buy a home. Depending on your situation, you may be able to purchase with as little as 5–10%, especially if you’re a first home buyer, qualify for a government guarantee, or use a family guarantor.
What matters most isn’t just the deposit amount, but also how it’s sourced, whether it counts as genuine savings, and how the loan is structured to avoid unnecessary costs such as LMI.
This guide explains:
First Step – Speak With a Mortgage Broker
Standard Deposit Requirements in Australia
Traditionally, lenders prefer a 20% deposit of the property’s purchase price.
This allows you to:
However, most first home buyers do not start with 20%, and that’s where alternative pathways come in.
Buying With a 10% Deposit
With a 10% deposit, many lenders will still approve a home loan, but:
This option often suits buyers with stable incomes and solid savings histories who want to enter the market sooner.
Buying With a 5% Deposit (Low Deposit Options)
Many first home buyers can purchase with as little as 5% deposit, provided they meet additional criteria.
Common pathways include:
With a 5% deposit:
This is where speaking with a broker matters, as not all lenders treat 5% deposits the same way.
What About Costs Outside the Deposit?
Your deposit is only part of the picture.
You also need to allow for:
Some first home buyers mistakenly use all their savings as a deposit and forget about these costs, which can cause issues later.
What Is Genuine Savings and Why Does It Matter?
Many lenders require genuine savings, especially when your deposit is under 20%.
Genuine savings usually mean:
Not all deposits qualify automatically.
Examples that may not count:
Can First Home Buyer Grants Be Used as a Deposit?
This is a common misunderstanding.
In most cases:
Grants work best when combined with:
Using a Family Guarantor Instead of a Cash Deposit
Some buyers use a family guarantor to reduce or remove the cash deposit requirement.
This can:
However, guarantor loans must be structured carefully to protect everyone involved.
How Much Deposit Should You Aim For?
There’s no single “right” number.
As a guide:
The best deposit is the one that:
Next Steps – Speak With a Mortgage Broker
Deposit rules vary significantly between lenders.
As your broker, I help you: