Deposit
The cash you contribute towards a purchase, with 20% being the level that avoids mortgage insurance.
Your deposit is the portion of the purchase price you fund yourself. Twenty per cent is the benchmark because it lets you borrow at 80% of the value and avoid Lenders Mortgage Insurance.
Smaller deposits are possible, sometimes as low as 5%, but they attract LMI and often a higher interest rate. Government guarantee schemes can remove the LMI requirement for eligible buyers.
The deposit is not the whole cash requirement. Stamp duty, conveyancing, inspections, loan fees and moving costs must all be funded on top, and are frequently underestimated.
The real cash needed
On a $750,000 purchase, a 20% deposit is $150,000. Add roughly $32,000 of stamp duty and around $3,000 of other costs and you need closer to $185,000.
The bit people get wrong
Lenders often want to see genuine savings — money accumulated over at least three months rather than a sudden gift or lump sum. A parental gift may need a statutory declaration confirming it is not repayable.
Common questions
How much deposit do I need?
Twenty per cent avoids LMI, but many buyers proceed with 5% to 10% and accept the premium. Eligible first home buyers may access schemes that waive it.
Can my parents help?
Yes, either through a gift or by acting as guarantor using equity in their own property. Both carry consequences worth understanding before proceeding.
Can I use my super for a deposit?
Only through the First Home Super Saver scheme, which lets you withdraw eligible voluntary contributions up to the scheme limits — not your whole balance.
Run your own numbers