How much deposit do I need to buy a house in Australia?

Australian banks typically lend up to 80% of a property's purchase price without requiring Lenders Mortgage Insurance (LMI). On a $700,000 house that means a $140,000 deposit. Below 80% LVR (loan-to-value ratio), no LMI is charged.

If you have less than 20%, banks will still lend up to 95% LVR but charge LMI: typically $10,000-$25,000 depending on loan size. LMI protects the lender, not you. It's a one-time premium added to the loan or paid upfront at settlement.

First home buyers can sidestep LMI entirely via the Home Guarantee Scheme (HGS). Buy with 5% deposit and the federal government guarantees the remaining 15%, removing the need for LMI. Income caps apply ($125K single / $200K couple) plus state property-price caps. The HGS isn't a grant. You still borrow 95%, but you save the LMI premium and start building equity sooner.

Beyond the deposit itself, factor in stamp duty (typically 3-5% of purchase price for non-FHB purchases, see our calculator), legal/conveyancing (~$2,000), inspections (~$500-1,000), and a buffer for unexpected costs. A realistic 'cash to settle' on a $700K purchase without FHB concessions is closer to $170K-180K, not $140K.