Deposit Guide

How much deposit do you need for a home loan?

Most first home buyers don't save 20% before buying. You can purchase with as little as 2% deposit depending on government scheme eligibility. Here's what each tier actually costs on a $650K property.

Stryve Finance broker reviewing home loan deposit options with first home buyer

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Based on a $650,000 propertyWhat each deposit tier actually costs

2% deposit — Help to Buy scheme

Deposit: $13,000
LMI: $0 (government takes an equity share)
Stamp duty: $0 for a first home buyer in NSW, QLD or the ACT, up to $32,175 elsewhere for an established home

Estimated total upfront cash in NSW, QLD or the ACT: ~$16,000 to $17,500

Includes legal fees and inspections. The Help to Buy scheme suits buyers with steady income but limited savings.

5% deposit — First Home Guarantee

10% deposit — no scheme required

20% deposit — no scheme needed

Stryve Finance team comparing home loan deposit tiers for first home buyer

Government schemes that reduce your deposit

These are the main first home buyer pathways in Australia, not edge-case workarounds. With government support, the minimum deposit drops to 2%.

First Home Guarantee (5% deposit)

The government guarantees up to 15% of the property value, so you avoid LMI entirely. Since October 2025, no income caps or waitlists. The most common pathway for buyers buying with a 5% deposit.

Help to Buy (2% deposit)

The government takes an equity share, reducing what you borrow and letting you buy with a 2% deposit. The Help to Buy scheme suits buyers with steady income but limited savings.

First Home Owner Grant

A one-off state government payment that boosts your deposit savings. It usually applies to new builds, and while it won’t cover the full deposit, it accelerates your timeline when combined with a guarantee scheme.

Stamp duty concessions

First home buyers in most states pay reduced or zero stamp duty, which is why upfront costs are much lower than expected. Check your state's stamp duty concessions to see what you could save.

Family Home Guarantee (2% deposit)

Single parents and legal guardians can buy with a 2% deposit under the Family Home Guarantee. The government guarantees the gap to 20%, removing LMI entirely. Available for both new and existing properties.

First Home Super Saver Scheme

Withdraw up to $50,000 in voluntary super contributions for your deposit. Contributions are taxed at 15% instead of your marginal rate, making it a tax-effective way to save faster.

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How your family can help without handing over cash

A guarantor loan lets a family member use equity in their own property as additional security. They don't give you money, and repayments remain your responsibility. This can let you buy with no deposit at all and skip LMI entirely.

The guarantee covers a portion of the loan, often up to 20% of the property value. On a $650K property, that's up to $130,000 in security from the guarantor's equity. Once your loan-to-value ratio drops below 80%, you can release the guarantee, typically within 5 to 7 years.

Both sides should get independent legal and financial advice. If you default, the guarantor's property can be at risk for the guaranteed portion.

Stryve Finance team discussing guarantor home loan options with clients

Genuine
savings

Your deposit needs a genuine savings component. It’s not designed to catch you out — it’s a financial health check that shows lenders you can manage money. The pattern matters more than the amount.

What genuine savings means

Most lenders want at least 5% of the purchase price saved by you over a minimum of 3 months. It proves a pattern of consistent saving, not a one-off windfall.

What counts and what doesn’t

Regular savings, term deposits, shares held 3+ months, and rental history count. Last-minute gifts, personal loans, and credit card advances do not.

Gift deposits aren’t a dealbreaker

You can combine a gift with genuine savings. Many lenders accept the mix as long as part of the deposit is clearly yours and the donor provides a signed letter.

Different lenders, different rules

Some lenders are strict on 3 months. Others are flexible for borrowers with strong income or long rental histories. This is where broker comparison matters.

Beyond the deposit: total upfront costs

Your deposit is the largest upfront cost, but not the only one. Here’s what else to budget for.

Stamp duty

Often the biggest cost after the deposit, and sometimes $0 for eligible buyers. Check your stamp duty concessions.

Conveyancing and legal fees

Budget $1,500 to $3,000 for the legal transfer of the property into your name. This applies to every purchase.

Building and pest inspections

Budget $500 to $1,000 before you commit. Skipping inspections can cost far more if issues surface after settlement.

Loan application fees

Some lenders charge $0 to $600 in setup or settlement fees. A broker can identify lenders with lower or zero fees.

LMI (if applicable)

Under government guarantee schemes, LMI doesn’t apply. Outside them, it varies significantly by lender and can sometimes be capitalised into the loan.

The real total

On a $650K property with 5% deposit under the First Home Guarantee, total upfront cash is around $35,000 to $37,000 including all costs in NSW, QLD or the ACT, where a first home buyer pays no stamp duty at that price.

What our customers
say about us

Don't just take our word for it. See what hundreds of satisfied clients across Sydney say about their experience with Stryve Finance.

“We had a great experience with Dylan and the team. Very professional and they took care of everything. We will definitely go through Stryve in the future.”

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Google review, 27 Oct 2026

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Google review, 22 Oct 2026

“The team is awesome. Douglas and Dylan, are very thorough and are generous with their time to explore the best product that meets my needs and when they cover all the details, they follow through to the last details ensure the transaction is complete. They will also check after the issue is settled to see if any more support is needed. Simply A service. Best wishes and am sure where to go fir my next mortgage or financial advice.”

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Google review, 13 Oct 2026

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Paul Coleiro

Google review, 22 Sept 2026

“Dylan and the Stryve Team have been so amazing during our search for a first home. Dylan was so communicative, patient and knowledgable and kept us updated throughout the whole process. I can’t recommend them enough!”

Michael O'Malley

Google review, 30 Aug 2026

“My partner & I have had a fantastic experience with Stryve Finance. Dylan and Douglas were incredibly helpful, responsive and supportive throughout the entire process. We’re very grateful for their help and would highly recommend Stryve to anyone looking for a reliable and knowledgeable mortgage broker.”

Tanvi Mara

Google review, 19 Aug 2026

“Dylan and the team at Stryve are exceptional. He made the process so easy to understand and helped secure the loan I was after. A special mention to how efficient the team are and can move things really quickly when needed. Can’t thank them enough for everything they’ve done. Strongly recommend if you’re looking for a first class mortgage broker!”

JAMES HARVEY

Google review, 18 Aug 2026

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Frequently asked questions

Yes. A guarantor loan allows a family member to provide security using equity in their property. You won’t need any deposit of your own and you avoid LMI. Both you and your guarantor should get independent legal and financial advice.

The difference on a $650K property is $32,500 in extra savings. Buying at 5% under the First Home Guarantee means $0 in LMI. If prices rise 5% while you save, you’ve lost $32,500 in equity and the property now costs $682,500. A broker can run the numbers for your situation.

Yes, and the differences are significant. The same loan can cost thousands more or less in LMI depending on the lender’s insurer and pricing. This is one of the strongest reasons to use a broker who compares across 50+ lenders.

Some lenders let you capitalise LMI into your loan. You won’t need the cash upfront, but you’ll pay interest on it over the loan term. On a $10,000 premium over 30 years, that adds roughly $6,000 to $8,000 in total interest.

Not under the First Home Guarantee or Help to Buy. These schemes give you standard rates because the government covers the lender's risk. Outside them, some lenders charge 0.1% to 0.2% more above 80% LVR. Explore all first home buyer loan options to compare.

Most lenders require 3 months of regular savings in your name. Some accept shorter periods for borrowers with strong income or long rental histories. It’s about demonstrating a pattern, not hitting a threshold.

The First Home Super Saver Scheme lets you withdraw up to $50,000 in voluntary super contributions for a first home deposit. Contributions are taxed at 15% going in rather than your marginal rate. You need to apply to the ATO before requesting the release.

The minimum is 2% under Help to Buy, or 5% under the First Home Guarantee. The First Home Guarantee has had no income cap since October 2025, while Help to Buy caps taxable income at $103,000 for singles and $165,000 for couples and single parents. Without a scheme, most lenders require at least 5% with LMI applying below 20%. A guarantor loan can eliminate the deposit entirely.

Which deposit pathway fits your situation?

Book an obligation-free call with a Stryve broker. We’ll review your savings, check scheme eligibility, and map the fastest path to buying.

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Not sure which schemes you can use? Try the First Home Buyer Scheme Finder

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