How much deposit do you actually need for your first home?
One of the first questions every first home buyer asks is simple: how much do I actually need to save? The answer depends on your target property price, the type of loan you are considering, and whether you qualify for any government assistance.
Generally, a 20% deposit helps you avoid Lenders Mortgage Insurance (LMI). However, many first home buyers enter the market with less — sometimes as low as 5% depending on lender policy and eligibility for schemes like the First Home Guarantee.
LMI is an insurance premium paid by the borrower to protect the lender when the deposit is below 20%. It can add thousands to your upfront costs, so understanding when it applies — and whether avoiding it is worth waiting longer to save — is an important part of your strategy.
Government schemes and grants vary by state and change over time. A broker can help you understand what you may be eligible for and how it affects your borrowing capacity.
Beyond the deposit, remember to budget for stamp duty, legal fees, building inspections, and moving costs. These add up quickly and are often underestimated in early planning.
The best approach is to get a clear picture of your borrowing capacity early. A complimentary consultation can help you understand where you stand today and what steps will get you to your goal.
