At Stryve Finance, we know that buying your first home is both exciting and overwhelming, especially when it comes to figuring out how much deposit you actually need.
In fact, with the right strategy, access to government grants, and a solid understanding of upfront costs, you might be able to buy a home with as little as 5% deposit.
In this guide, we’ll break down:
- Exactly how much deposit you need based on your target home price
- The hidden costs you’ll need to plan for (like stamp duty and LMI)
- Smart ways to save faster, even if you're starting from scratch
- The schemes and grants that can help you buy sooner
Whether you’re dreaming of your first apartment in Melbourne, a townhouse in Brisbane, or a family home in regional Victoria, this is your ultimate deposit roadmap for 2025.
Let’s debunk the 20% myth and show you how to get home loan-ready, sooner than you think.
How Much Deposit Do You Actually Need to Buy a Home?
Let’s clear this up, you do not always need a 20% deposit to buy a home in Australia.
While 20% is considered ideal (because it avoids Lenders Mortgage Insurance), many buyers successfully purchase with as little as 5%, especially first-home buyers using government-backed schemes.
At Stryve Finance, we help clients secure home loans every day with a variety of deposit sizes. Here’s what that might look like:
| Property Price | 5% Deposit | 10% Deposit | 20% Deposit |
|---|---|---|---|
| $500,000 | $25,000 | $50,000 | $100,000 |
| $700,000 | $35,000 | $70,000 | $140,000 |
| $900,000 | $45,000 | $90,000 | $180,000 |
Stryve Tip: Even if you have less than 20%, you may still be eligible for a competitive loan with or without LMI, depending on your profession, income, or access to government schemes.
But That’s Not the Only Cost…
Remember, your deposit is just part of the picture. You’ll also need to account for:
- Stamp duty
- Lenders Mortgage Insurance (LMI) if applicable
- Legal/conveyancing fees
- Inspections
- Loan setup costs
- Moving expenses
Don’t worry, we cover all of these in the next section.
Whether you’re buying with a 5%, 10%, or 20% deposit, Stryve Finance is here to help you plan, budget, and secure the right loan structure for your situation.
What Other Upfront Costs Should You Expect?
Your deposit is just one piece of the puzzle. When buying a property in Australia, there are several one-off costs you’ll need to factor into your budget — and skipping them can lead to some nasty surprises.
At Stryve Finance, we make sure our clients understand all the upfront expenses, not just the deposit. Here’s what you should be prepared for:
Common Upfront Costs When Buying a Home
| Cost Type | Estimated Range | What It Covers |
|---|---|---|
| Stamp Duty | $0 - $40,000+ | State-based property tax. First-home buyers may get discounts. |
| Lenders Mortgage Insurance (LMI) | $5,000 - $30,000+ | If your deposit is under 20%, LMI protects the lender. |
| Conveyancing / Legal Fees | $1,200 - $2,500 | Legal paperwork, title checks, settlement management. |
| Building & Pest Inspection | $400 - $800 | Ensures the property is structurally sound and pest-free. |
| Loan Application / Setup Fees | $150 - $600 | May be charged by the lender or waived as part of your deal. |
| Moving & Connection Costs | $1,000 - $3,000 | Removalists, utilities, internet, and basic home setup. |
Stryve Advice: We always help our clients calculate these in advance — especially stamp duty calculators and LMI — which can significantly affect your loan structure and timeline.
Need Help Calculating Your Total Upfront Costs?
At Stryve Finance, we use tailored tools and real-world property data to give you a true picture of what you’ll need — not just estimates.
👉 Book a free consultation and we’ll calculate your full budget, including deposit, stamp duty, LMI, and more — specific to your state and situation.
How to Save for a Home Deposit Faster
Let’s face it, saving a deposit can feel like climbing a mountain. But with the right strategy (and some guidance from experts like us at Stryve Finance), it’s not only achievable — it can happen sooner than you think.
Whether you’re starting from scratch or looking to top up your deposit for a better deal, here are smart, proven ways to boost your savings faster.
1. Automate Your Savings (Pay Yourself First)
Set up a direct debit into a separate high-interest savings account right after payday. Out of sight, out of mind — and you won’t be tempted to spend it.
Stryve Tip: Look for bonus saver accounts that reward consistent contributions.
2. Use the Bucket Method to Manage Money
Break your income into simple “buckets” to control spending and grow your deposit:
- 60% – Needs (rent, groceries, utilities)
- 20% – Savings (your home deposit!)
- 20% – Lifestyle (fun stuff, guilt-free)
3. Explore High-Interest Savings & Offset Accounts
Use a First Home Saver Account (where available) or even an offset account if you already have a loan. This earns you interest (or reduces loan interest), accelerating your savings growth.
4. Consider a Guarantor Loan
If you’re short on a deposit, a guarantor loan can help you buy with little or no deposit. A parent or close relative offers part of their home equity as additional security.
This can:
- Eliminate the need for LMI
- Boost your borrowing power
- Help you get into the market faster
Stryve brokers handle the full guarantor process, including risk explanations and lender options.
5. Leverage Professional LMI Waivers
If you’re in a qualifying profession, such as a:
- Doctor or nurse
- Lawyer or accountant
- Engineer or actuary
You may be eligible for 90–95% LVR loans with no LMI, even without a 20% deposit.
Ask Stryve to check if your profession qualifies. You might save tens of thousands.
6. Use Apps and Track Spending
Small leaks sink big ships. Use budgeting tools like:
- Pocketbook
- YNAB (You Need A Budget)
- Frollo
- MoneySmart Budget Planner
We can help you build a custom digital budget during your finance consultation.
Bonus: Rent as 'Genuine Savings'
Many lenders now accept 12 months of on-time rent payments as proof of savings history.
So if you’ve been renting, good news — you may already be halfway there.
Stryve Insight: “Don’t wait until you have a full deposit. Talk to us early, we can help assess your situation and find a clear path forward.”
What’s the Minimum Deposit You Need Based on Your Income?
So, how much should you be saving?
The size of your deposit often depends on how much a bank is willing to lend you, which is based heavily on your income, debts, and expenses. That’s why we always say:
“Your deposit target isn’t just a number, it’s part of a broader borrowing strategy.”
– The Stryve Finance Team
Here’s a general guide to give you a starting point:
| Your Annual Income (Before Tax) | Estimated Max Borrowing Power | Minimum 5% Deposit | Ideal 20% Deposit |
|---|---|---|---|
| $60,000 | ~$400,000 | $20,000 | $80,000 |
| $80,000 | ~$550,000 | $27,500 | $110,000 |
| $100,000 | ~$650,000 | $32,500 | $130,000 |
| $120,000 | ~$750,000 | $37,500 | $150,000 |
Note: These are estimates only. Borrowing power also depends on your living expenses, credit history, financial commitments (like car loans or credit cards), and whether you’re applying solo or as a couple.
Want to Know Your Real Borrowing Power?
We’ll help you figure it out with a full borrowing power assessment based on:
- Income and savings
- Liabilities (HECS, car loans, credit cards)
- Credit file
- Your preferred lifestyle (so we’re not maxing you out unnecessarily)
Stryve Finance uses lender-grade software to calculate what each bank would lend you specifically. This is far more accurate than most online calculators.
We’ll also recommend how much deposit you should target for the best balance of approval, LMI, and flexibility.
How Your Deposit Impacts Interest Rates, LMI, and Approval
When it comes to home loans, your deposit size is more than just a number. It’s a key factor that affects the structure, cost, and flexibility of your mortgage.
From how much you borrow to whether you pay LMI (Lenders Mortgage Insurance), and even which banks will lend to you — it all starts with your deposit.
At Stryve Finance, we help you understand what your deposit unlocks and what it limits, so you can make informed, confident choices.
What Changes With a Bigger (or Smaller) Deposit?
- LVR (Loan-to-Value Ratio): The smaller your deposit, the higher your LVR — and the more cautious lenders become.
- LMI (Lenders Mortgage Insurance): Required if deposit is under 20% (unless waived).
- Lender Access: More deposit = more lender options.
- Interest Rate Impact: Larger deposits can unlock better rates.
- Loan Approval Timeline: Lower LVR = faster approvals.
Home Loan Comparison Table by Deposit Tier
| Deposit Size | LVR Range | LMI? | What You Can Expect | Who This Suits |
|---|---|---|---|---|
| 20%+ | ≤ 80% | None | Best interest rates, widest lender choice, faster approvals, strongest equity position | Investors, second-home buyers, cautious FHBs |
| 10–19% | 81–89% | Yes (partial or full) | Reasonable rates, moderate LMI cost, more lenders than low-deposit loans | FHBs with decent savings, second-time buyers |
| 5–9% | 90–95% | Yes (unless waived) | Higher LMI costs unless exempt; limited lender pool, often government-scheme | First-home buyers using FHBG or similar |
| <5% | 95%+ | Yes or Guarantor-backed | Specialty or family-backed loans; strict servicing criteria, niche lenders only | Buyers with family support or unique scenarios |
Which Option Is Right for You?
That depends entirely on your goals, eligibility, and timeline.
Some buyers want to wait and save 20% to avoid LMI and get the best interest rate. Others buy sooner — even with 5% — especially if they qualify for the First Home Guarantee Scheme or LMI waivers. We have an article about how to get first home loan.
At Stryve Finance, we don’t just tell you how much you can borrow — we model multiple deposit scenarios and guide you on:
- Whether it’s worth saving longer or buying now
- The cost of LMI vs. market growth (hint: sometimes waiting costs more)
- Which lenders offer the best structure for your situation
You're Closer Than You Think
Saving a home deposit might seem like a massive challenge, but with the right plan and the right partner, it doesn’t have to take years.
At Stryve Finance, we’ve helped hundreds of first-home buyers just like you:
- Buy with 5% deposit (and avoid LMI)
- Unlock grants, guarantees, and waivers
- Save faster with custom deposit plans
- Find lenders that say “yes” even when banks say “no”
Whether you're at the beginning of your journey or ready to take the next step, we’re here to guide you with clear advice, smart strategy, and end-to-end support. We respect your privacy. Your details won’t be shared. See our privacy policy.
Dylan Bertovic is the Director and Senior Finance Broker at Stryve Finance, specialising in non-traditional lending solutions. He helps clients across Australia with tiny home loans, construction finance, equipment and asset lending, refinancing, and investor loans. With deep expertise in self-employed and renovation mortgages, Dylan is known for crafting tailored strategies that get results
