Average house deposit for first home buyers in Australia

The average first home buyer needs to save $126,872 for a 20% deposit, based on the average first-home property value of around $635,000.

Richard Whitten's headshot
Joshua Godfrey's headshot

By

Richard Whitten

&

Joshua Godfrey

Edited by

Jason Loewenthal

Updated

Fact checked

A typical first home buyer's deposit is between 5% and 20% of the property's purchase price. If you bought an $800,000 house with a 20% deposit you would need to save $160,000 for the deposit and borrow the rest.

Saving this deposit is often the biggest challenge for first home buyers today.

The statistics on this page break down how much homebuyers need to save for deposits using ABS lending figures to work out average deposits. We have broken this down by state and territory.

Key statistics

  • The average Australian first home buyer needs to save $134,841 if they want a 20% deposit.
  • The average first home buyer's monthly loan repayments have jumped 77% since rates began rising in May 2022.
  • The average buyer in NSW faces the biggest hurdle, requiring a deposit of $156,761.

What is the average house deposit by state?

  • The average Australian first home buyer looking to buy with a 20% deposit today needs to save $134,841.
  • A buyer in NSW needs to save $156,761. A buyer in Tasmania needs to save $107,083 which is 46% less in comparison.

We analysed how much homebuyers need to save for a deposit in each state and territory by looking at the latest average loan sizes for Australian owner-occupiers (ABS figures).

Using these loan averages we were able to assume property prices and deposit sizes. This is based on the assumption of a 20% deposit.

Borrowers can get home loans with deposits as low as 5%. But this comes with additional costs such as lenders mortgage insurance (LMI).

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Expert insight: Tips for first-time buyers

"My advice would is start the search in 'the sold' section rather than the 'for sale' section. If you do your research up front on what is actually achievable, you can conduct your search with much more focus and not waste any time chasing properties that will never be in [your] budget anyway. By using the map function, you can actually explore alternative areas to your ideal suburbs and find that ' sister' suburbs may give you a similar lifestyle at a more affordable price point."

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Principal, Michelle May Buyers Agents

What are the average repayments on a 30-year loan?

With the loan amounts and deposit figures above, we calculated the average borrower's monthly home loan repayments. To do this we used:

  • A 6.27% interest rate (the RBA's latest average owner-occupier variable rate)
  • A 30-year loan term (this is the standard Australian loan term)

The data clearly shows that homebuyers in NSW have the most expensive mortgage burdens. This is the inevitable result of higher property prices in that state (especially in Sydney), which in turn forces buyers to save bigger deposits and borrow more.

Interest rates started rising in May 2022. This has massively increased loan repayments:

  • In April 2022 the average NSW homebuyer was making monthly repayments of $2,317. In September 2024 this has increased by 67% to $3,869.
  • Nationwide, loan repayments for first home buyers have jumped 77% over the same time.
Did you know?
Our latest State of Women's Wealth Report reveals a clear gender gap in home ownership. Gen Z men are twice as likely to own a home outright compared to Gen Z women (18% vs 9%), and millennial men are 50% more likely to have paid off their homes (15% vs 10%). Overall, 46% of women say they're behind in their journey to home ownership, compared to 33% of men.
Source: Finder's State of Women's Wealth Report 2025

How much does the average first home buyer borrow?

Another way to understand rising property prices and deposit sizes is to look at how much first home buyers borrow today.

Loans for first home buyers have increased dramatically across every state and territory in the last 2 decades.

What's the average property price based on the deposit amount?

Using loan averages and 20% deposits we can also determine average property prices. All figures in the chart below assume a 20% deposit.

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Our expert says

"Homebuyers have been chasing a goal which is becoming more and more difficult to attain. As property prices have risen the deposits needed for a first home loan have grown with them. Not only that, rising interest rates have meant that buyer borrowing power has dropped. The good news is that there are still solutions, like first home buyer support and low deposit loans, but it might require a little research and comparison to find the right one for you."

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Rebecca Pike
Senior home loans writer

Compare first home buyer home loan options

If you're looking to enter the property market, you'll need to save a deposit and get a home loan. And luckily, you don't need to save a 20% deposit.

You can enter the market with a low deposit home loan if you're willing to borrow more and pay LMI.

And if you have parents who own a property and are willing to act as your guarantor, you can get a loan with a low deposit and skip the LMI premium.

There are also government schemes that let first home buyers purchase homes with deposits below 20% and no LMI.

Sources

Jason Loewenthal's headshot
To make sure you get accurate and helpful information, this guide has been edited by Jason Loewenthal as part of our fact-checking process.
Richard Whitten's headshot
Senior Money Editor

Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University. See full bio

Richard's expertise
Richard has written 691 Finder guides across topics including:
  • Home loans
  • Credit cards
  • Personal finance
  • Money-saving tips
Joshua Godfrey's headshot
Co-written by

Senior Insights Analyst

Joshua Godfrey is a Senior Insights Analyst at Finder, specialising in data analysis and identifying emerging trends through the Consumer Sentiment Tracker, a monthly survey on Australians' financial attitudes. He has authored Finder’s 2024 Wealth Building Report and 2025 First Home Buyer Report which have been widely quoted in top media outlets like the AFR and news.com.au. With a Bachelor of Business in Finance and Marketing and a Diploma of Creative Intelligence from UTS, Josh is passionate about uncovering patterns in consumer sentiment and exploring how they influence the future of finance. See full bio

Joshua's expertise
Joshua has written 40 Finder guides across topics including:
  • Data and analytics
  • Money trends
  • Data journalism
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