💰 How Much Deposit Do You Really Need to Buy a Home?

If you’re dreaming of buying a home, thefirst question you probably ask is:
“How much deposit do I need?”

The answer? It depends. But it’s not always as daunting as you might think.

Let’s break down deposit options, government schemes, and how you can get into your new home sooner than you expect.

Typical Deposit Benchmarks

• 20% Deposit:
      The “gold standard.” If you have 20% or more, you can usually avoid Lenders     Mortgage Insurance (LMI), which can save you thousands. Plus, you’ll     have a better chance of loan approval and often lower interest rates.
• 10% Deposit:
      Still strong and workable for many lenders, but you’ll likely pay LMI.
• 5% Deposit:
      This is increasingly common thanks to government grants and first home     buyer schemes. You can buy with 5% — but you’ll almost always pay     LMI, and your loan options may be more limited.

What If You Don’t Have a Deposit Yet?

Don’t worry — there are several ways to bridge the gap:

• First Home Guarantee (FHBG):
      A government scheme allowing eligible first home buyers to purchase with     as little as 5% deposit without paying LMI. Great news if you     qualify!
• Family Guarantee:
      A family member (usually a parent) can guarantee some or all of your     deposit using their home equity.
• Save with Offset Accounts and Redraws:
      These tools can help you build your deposit faster.

Beware of Lenders Mortgage Insurance(LMI)

If your deposit is under 20%, you’ll likely pay LMI — an insurance protecting the lender if you default. LMI can cost thousands, so factor this into your budget.

With schemes like the FHBG, LMI can be a voided even with a small deposit, which is a huge advantage.

Tips to Boost Your Deposit Faster

• Set up automated savings with a dedicated account
• Consider rentvesting to save while still living where     you want
• Use windfalls, bonuses, or tax refunds strategically
• Minimise unnecessary expenses to accelerate your savings goal

How Can a Mortgage Broker Help?

I work with many buyers just like you —people surprised at how quickly they can get into a home once they understand their options.

I can help by:

• Explaining which lenders accept smaller deposits
• Helping you access government grants and schemes
• Structuring your loan to reduce or avoid LMI
• Creating a realistic savings plan

Ready to Take the Next Step?

Buying a home doesn’t have to be a distant dream. With the right information and support, you can be well on your way sooner than you think.

📞 Contact me today for a free chat about your deposit options and home loan pre-approval.