Calculate Your Home Loan Deposit And Upfront Costs

Generally, the deposit required ranges from 5% to 20% of the property's value. The exact percentage depends on factors such as lender requirements, local regulations, and available government schemes like the First Home Guarantee. While some lenders might accept a lower deposit if you have genuine savings or a guarantor, offering a higher deposit usually translates to better borrowing conditions and can help you avoid additional fees like Lender’s Mortgage Insurance (LMI).

A larger deposit directly improves your borrowing capacity and can secure a lower interest rate. When you contribute more upfront, your LVR decreases, reducing the lender’s risk. This enhanced financial profile can lead to increased loan eligibility and more competitive interest rates, saving you money over the life of your home loan.

Not necessarily. While a 20% deposit is standard for Australian home loans, some lenders approve loans with smaller deposits. Although a 20% deposit is often ideal because it helps you avoid LMI. Many lenders do approve loans with a smaller deposit; however, dipping below the 20% threshold may result in extra fees or a slightly higher interest rate. Your decision should balance your financial situation against the potential costs of a lower deposit.

Yes, A larger deposit lowers your LVR, which generally makes lenders more comfortable and can increase your borrowing capacity. For a quick estimate, check out our How Much Can I Borrow calculator.

Yes but it's situational. The only way to get a home loan with no deposit is by using a guarantor. While the idea of a zero-deposit loan is attractive, lenders typically have strict lending criteria. Even with government assistance programs, a minimum deposit, usually around 5%, is required. Therefore, a low-deposit loan is a more common and accessible option for the majority of borrowers.

Yes. Many lenders accept a gifted deposit if you can provide a formal gift letter confirming the money does not need to be repaid. This can help boost your deposit size without impacting your existing savings.

Stamp duty increases your overall upfront costs, which in turn reduces the funds available for your deposit. As a tax imposed by state or territorial governments on property transactions, stamp duty is calculated based on the property's value and its location. Higher stamp duty means you need to budget more for these additional costs, impacting the amount you can allocate toward your deposit.

• Stamp Duty
• Legal/Conveyancing Fees
• Property Inspections
• Lender Fees & LMI (if applicable)

You can accelerate your house deposit savings by establishing a strict budget, automating your savings contributions, and reducing unnecessary expenses. Additionally, consider leveraging government incentives and working to minimise your existing debts. These strategies not only help you build your deposit fund faster but also improve your overall financial profile, making you a more attractive borrower to lenders.