How much deposit is needed for a home loan?

Typically, most lenders are looking for 20% of the property value as a deposit to take out a home loan. However, as a first home buyer you may be able to use a deposit of as little as 5%. If you're a single parent, you may be able to buy with as little as 2%! You can do this through paying for lender's mortgage insurance (LMI), by taking part in a government scheme or by using a guarantor.

Can I get government help with my first home loan?

Both the federal and state governments have schemes to help first home buyers get on the market. These include financial contributions and acting as guarantor to secure a lower deposit. The Australian Government 5% Deposit Scheme allows you to buy with a 5% deposit, and pay no LMI. Eligibility conditions apply, so be sure to check our guides and see which lenders are part of the schemes.

Is a variable rate home loan better than a fixed rate home loan?

Whether you choose a variable rate home loan or a fixed rate home loan is really dependent on your circumstances. Rates can and do change regularly, so fixed rates can be a good option for those who prefer certainty. You do risk fixing at the peak of the market, and if rates fall, you'll still be paying a higher fixed rate. Use our repayment calculator and speak to a mortgage broker if you want more information on what the right rate is for you.

How to get a home loan in Australia in 8 steps

Banks and lenders typically want to see a 20% deposit to buy a home, but you may be eligible to buy with as little as 2-5%.
Compare loans by interest rates, total fees shown in comparison rates and the features that matter to you.
Estimate your borrowing power early and to have confidence when buying, get pre-approval for peace of mind.

Taking out a home loan in Australia isn't as simple as applying with a bank and waiting to be approved. There are other steps to take to make sure you're ready and here we go through each of them:

1. Understand your eligibility

There are several basic criteria you need to meet before you can take out a home loan. Some lenders may have their own specific criteria as well, but in general you:

Must be at least 18 years of age.
Should be on a regular income and this income must be sufficient to not just meet the repayments, but to be comfortable in doing so.
Should have stable employment. Many lenders will only lend to borrowers who are fully employed. You can still be eligible for a loan if you are self-employed or a gig worker, but you will need to provide additional income information.
Will typically need to be an Australian citizen or permanent resident. You can also find loan options if you are a temporary resident of Australia.
Will normally have to show your ability to save with 3 - 6 months of bank statements.

2. Save your deposit

The most difficult step for many borrowers is saving for a deposit, but this is something you need to do to take out a home loan.

For most home loans you will need a deposit of 20% of the property value. However, there are ways you can get a home loan with a low deposit and in some cases, no deposit at all.

There are government grants and schemes available for first home buyers to take out a home loan with as little as a 5% deposit.

Even without one of these incentives, borrowers can use a 5% deposit if they pay lender's mortgage insurance (LMI).

Take a look at our tips on saving a deposit

3. Prepare your finances

Banks won't lend you money if you can't afford to pay it back, so it's important to demonstrate that you have the finances to do so.

You should be able to show that your savings account has a good balance. Not only that, you should be able to prove that you are able to regularly add money. Put a set amount into your savings account each time you get paid.

If you don't already have savings or you don't regularly add to your savings, this can take several months to get to this point.

Start by making a budget. Take a look at what you earn and what your vital expenses are to work out how much disposable money you have.

Then allocate yourself a feasible amount each week that you can spend, but make sure a good amount goes to your savings. Use a high interest savings account to give your savings a little extra boost.

This might mean you need to cut back on spending on certain things. Some easy areas to cut back on include streaming services, gym memberships, takeaways and eating/drinking out.

Stick to the budget and build up your savings. This will prove to the lender that you can not only make repayments on a loan, but that you have a buffer if those repayments were to increase.

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

4. Work out your borrowing power

You can usually work out a rough estimate of how much you'll be able to borrow before you apply. This will allow you to determine your budget when looking at properties, as well as how much you'll likely end up paying in monthly repayments.

It's important to do this before you start looking at homes or loans. You don't want to get into a situation where you bid for a home you can't afford or apply for a home loan you have no chance of getting.

Use Finder's borrowing power calculator to see how much you could borrow

5. Compare home loans

Once you've got your finances in check and you've saved a deposit, it's time to start comparing home loans.

If you don't know what you're looking for, there are a few key things to consider:

Interest rates: The obvious one, but by all means not the only thing you should look at. Essentially, the lower the interest rate, the lower your repayments will be.
Fees and charges: Look beyond the interest rate at the fees a lender may charge. This may include an application fee, settlement fee, account-keeping fees and a fee for the offset account. Look at the comparison rate to see whether the ongoing fees bump up the monthly repayments.
Features: Consider what features you want for your home loan. An offset account is probably the biggest one, but you might want to make extra repayments, split your account into a fixed portion and a variable portion or get a package loan.
Eligibility criteria: Some lenders have specific requirements for who they lend to. For example, they may only lend to a specific region or to those in specific employment.

6. Mortgage pre-approval

Pre-approval is where a lender gives you approval for a home loan

Obtaining pre-approval from a lender means you know exactly how much you can borrow and therefore, what properties you should be looking at.

Also known as conditional pre-approval, there are still conditions you need to meet before being fully approved for the loan.

This is not something you need to do and not every lender offers it, but it is helpful to know how much you have to spend if you're bidding at auction.

Mortgage brokers

Rather than completing the entire application process by yourself, you might want to use a mortgage broker.

Mortgage brokers will go through the entire process from beginning to end, helping you with your financial situation and talking you through the various loan options. They will apply for pre-approval and the home loan on your behalf, gathering all of the relevant documents for a seamless process.

Most mortgage brokers do not charge for their service, instead they are paid a commission by the bank based on your loan amount.

7. Find your property

Whether you're armed with pre-approval or you've just worked out a rough estimate of your borrowing power, you need to find the property you want to buy before you apply for a home loan.

There are a few things to consider when it comes to choosing property:

Location: Consider how far you want to live from schools or your place of work, as well as grocery stores, parks or other amenities.
Property type: Consider whether you want an apartment or a house.
Property size: Consider the size of property you would like and whether you need garden space.
Your future plans: If you're planning on living in the property for some time you will need to think about whether that changes the property you want to buy. You might be ok with a small apartment at the start, but if you're thinking of starting or growing your family or buying a pet, you might need a bigger place. If you might switch jobs in the near future, think about whether proximity to your workplace is something you really need to consider.
Whether you will live in it or rent it out: If the property you're buying is an investment property you might think about the property a little differently. For example, you might get a higher rental return if the property is in a central location or has amenities like a pool.

Conveyancers

When buying a property you will need to get a property conveyancer who handles the legal side of things to ensure the sale is legitimate. This includes organising mortgage documents and the contract of sale, carrying out a title search on your behalf to ensure there are no other mortgages on the property and organising a land survey.

The costs of a property conveyancer vary depending on how much they need to do, but you can expect to pay anything from $700 to $2,500 when you buy or sell a property. It generally costs more to buy a property than when you sell.

8. Submit your application

If you've been successful at auction for a property, or you've bought privately, it's time to submit your application.

While most lenders now prefer you to do this through an online application, you can apply in person at banks with branches or you might be able to meet with a mobile lender to help you through the application.

You'll need to provide bank statements, employment evidence and proof of identity. If you're approved, you'll be given a date of settlement – when the funds are available.

Ready to compare home loans?

20 of 26 results

Finder Score	Interest Rate p.a.	Comparison Rate p.a.	Fees	Features	Monthly Payment
Finder score 9.7 Excellent Unloan Variable Home Loan Finder Award	Finder score 9.7 Excellent	Interest Rate 6.14%	Comparison Rate 6.05%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest20% min. equityOwner-occupier	Monthly Payment $3,656 per month	$1,000 Reward Finder Rewards: Join Finder then refinance an eligible home loan to receive a $1,000 digital Visa gift card. Ends 30 Nov 2026. T&Cs apply.	Go to site View details Compare product selectionCompare	loading
Finder score 9.4 Excellent Unity Bank First Home Buyer	Finder score 9.4 Excellent	Interest Rate 6.40%	Comparison Rate 6.45%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest5% min. equityOwner-occupierOffset accountLMI	Monthly Payment $3,757 per month	View details Compare product selectionCompare	loading
Finder score 9.2 Excellent Newcastle Permanent Real Deal Home Loan	Finder score 9.2 Excellent	Interest Rate 6.19%	Comparison Rate 6.23%	Fees Application: $350 Ongoing: $0 p.a.	Principal & Interest20% min. equityOwner-occupier	Monthly Payment $3,675 per month	Cashback: Eligible purchases and refinancers can get up to $3,000 cashback depending on loan value with LVR 80% or less. Application must be completed online. T&Cs apply.	Go to site View details Compare product selectionCompare	loading
Finder score 9.1 Excellent Regional Australia Bank Variable Home Loan	Finder score 9.1 Excellent	Interest Rate 6.14%	Comparison Rate 6.17%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest40% min. equityOwner-occupier	Monthly Payment $3,656 per month	View details Compare product selectionCompare	loading
Finder score 9 Excellent loans.com.au Variable Bare Home Loan	Finder score 9 Excellent	Interest Rate 6.19%	Comparison Rate 6.23%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest10% min. equityOwner-occupierLMI	Monthly Payment $3,675 per month	View details Compare product selectionCompare	loading
Finder score 9.4 Excellent Macquarie Bank Offset Home Loan Package	Finder score 9.4 Excellent	Interest Rate 6.34%	Comparison Rate 6.59%	Fees Application: $0 Ongoing: $248 p.a.	Principal & Interest20% min. equityOwner-occupierOffset account	Monthly Payment $3,733 per month	View details Compare product selectionCompare	loading
Finder score 8.9 Great Macquarie Bank Basic Home Loan	Finder score 8.9 Great	Interest Rate 6.34%	Comparison Rate 6.36%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest20% min. equityOwner-occupier	Monthly Payment $3,733 per month	View details Compare product selectionCompare	loading
Finder score 9.6 Excellent Unity Bank Momentum Home Loan	Finder score 9.6 Excellent	Interest Rate 6.24%	Comparison Rate 6.29%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest40% min. equityOwner-occupierOffset account	Monthly Payment $3,694 per month	View details Compare product selectionCompare	loading
Finder score 9 Excellent loans.com.au Variable Bare Home Loan	Finder score 9 Excellent	Interest Rate 6.49%	Comparison Rate 6.53%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest10% min. equityInvestmentLMI	Monthly Payment $3,792 per month	View details Compare product selectionCompare	loading
Finder score 9.8 Excellent Unloan Variable Home Loan	Finder score 9.8 Excellent	Interest Rate 6.29%	Comparison Rate 6.20%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest20% min. equityInvestment	Monthly Payment $3,714 per month	$1,000 Reward Finder Rewards: Join Finder then refinance an eligible home loan to receive a $1,000 digital Visa gift card. Ends 30 Nov 2026. T&Cs apply.	Go to site View details Compare product selectionCompare	loading
Finder score 9.2 Excellent Greater Bank Great Rate Discounted Variable Home Loan - Family Pledge	Finder score 9.2 Excellent	Interest Rate 6.09%	Comparison Rate 6.10%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest-10% min. equityOwner-occupierNo LMI	Monthly Payment $3,636 per month	View details Compare product selectionCompare	loading
Finder score 7.4 Great Ubank Flex Fixed Home Loan	Finder score 7.4 Great	Interest Rate 6.79%	Comparison Rate 6.71%	Fees Application: $0 Ongoing: $250 p.a.	Principal & Interest 2Y Fixed20% min. equityOwner-occupier	Monthly Payment $3,911 per month	View details Compare product selectionCompare	loading
Finder score 7.5 Great Ubank Flex Fixed Home Loan	Finder score 7.5 Great	Interest Rate 6.74%	Comparison Rate 6.66%	Fees Application: $0 Ongoing: $250 p.a.	Principal & Interest 1Y Fixed20% min. equityOwner-occupier	Monthly Payment $3,891 per month	View details Compare product selectionCompare	loading
Finder score 9 Excellent Macquarie Bank Basic Home Loan	Finder score 9 Excellent	Interest Rate 6.49%	Comparison Rate 6.52%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest20% min. equityInvestment	Monthly Payment $3,792 per month	View details Compare product selectionCompare	loading
Finder score 9.5 Excellent Newcastle Permanent Premium Plus Package New Customer Offer Discount Home Loan	Finder score 9.5 Excellent	Interest Rate 6.39%	Comparison Rate 6.73%	Fees Application: $0 Ongoing: $395 p.a.	Principal & Interest20% min. equityOwner-occupierOffset account	Monthly Payment $3,753 per month	Cashback: Eligible purchases and refinancers can get up to $3,000 cashback depending on loan value with LVR 80% or less. Application must be completed online. T&Cs apply.	View details Compare product selectionCompare	loading
Finder score 8.3 Great AMP Bank Professional Package Fixed Loan	Finder score 8.3 Great	Interest Rate 6.69%	Comparison Rate 7.56%	Fees Application: $0 Ongoing: $415 p.a.	Principal & Interest 3Y Fixed20% min. equityOwner-occupier	Monthly Payment $3,872 per month	View details Compare product selectionCompare	loading
Finder score 8.1 Great Bank of Melbourne Basic Variable Rate Home Loan	Finder score 8.1 Great	Interest Rate 6.94%	Comparison Rate 6.95%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest5% min. equityOwner-occupierLMI	Monthly Payment $3,971 per month	Enquire now View details Compare product selectionCompare	loading
Finder score 9.5 Excellent Unity Bank Essential Worker Home Loan	Finder score 9.5 Excellent	Interest Rate 6.30%	Comparison Rate 6.35%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest5% min. equityOwner-occupierOffset accountLMI	Monthly Payment $3,718 per month	View details Compare product selectionCompare	loading
Finder score 9.3 Excellent Unity Bank Momentum Home Loan	Finder score 9.3 Excellent	Interest Rate 6.70%	Comparison Rate 6.75%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest20% min. equityInvestmentOffset account	Monthly Payment $3,876 per month	View details Compare product selectionCompare	loading
Finder score 9.4 Excellent Unity Bank Momentum Home Loan	Finder score 9.4 Excellent	Interest Rate 6.44%	Comparison Rate 6.49%	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest5% min. equityOwner-occupierOffset accountLMI	Monthly Payment $3,773 per month	View details Compare product selectionCompare	loading

Showing 20 of 26 results

What is Finder Score?

The Finder Score crunches 7,000 home loans across 120+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.

To provide a Score, we compare like-for-like loans. So if you're comparing the best home loans for cashback, you can see how each home loan stacks up against other home loans with the same borrower type, rate type and repayment type. We also take into consideration the amount of cashback offered when calculating the Score so you can tell if it's really worth it.

Read the full breakdown

Frequently asked questions about how to apply for a home loan

Typically, most lenders are looking for 20% of the property value as a deposit to take out a home loan. However, as a first home buyer you may be able to use a deposit of as little as 5%. If you're a single parent, you may be able to buy with as little as 2%! You can do this through paying for lender's mortgage insurance (LMI), by taking part in a government scheme or by using a guarantor.
Both the federal and state governments have schemes to help first home buyers get on the market. These include financial contributions and acting as guarantor to secure a lower deposit. The Australian Government 5% Deposit Scheme allows you to buy with a 5% deposit, and pay no LMI. Eligibility conditions apply, so be sure to check our guides and see which lenders are part of the schemes.
Whether you choose a variable rate home loan or a fixed rate home loan is really dependent on your circumstances. Rates can and do change regularly, so fixed rates can be a good option for those who prefer certainty. You do risk fixing at the peak of the market, and if rates fall, you'll still be paying a higher fixed rate. Use our repayment calculator and speak to a mortgage broker if you want more information on what the right rate is for you.

Finder writers are subject matter experts and use primary sources, in-depth research and interviews with other experts to ensure you're getting accurate, up-to-date information. Articles are fact checked in line with our editorial guidelines.
1. Finder's State of Women's Wealth Report 2025

Thank you for your feedback!

Written by

Rebecca Pike

Editor, Money

Add to Preferred Sources

Rebecca Pike is Finder’s money editor, with over 7 years of experience in mortgages and personal finance. A frequent TV and radio commentator, she frequently appears on Sunrise and 7News, Today and 9News, as well as Sky News, Channel 10 and across radio and print. Rebecca previously served as Editor of Mortgage Professional Australia. She has a Master’s degree in Journalism as well as ASIC-recognised certifications in Tier 1 Generic Knowledge and Tier 2 General Advice Deposit Products, which comply with ASIC guidelines. See full bio

Rebecca's expertise

Rebecca has written 253 Finder guides across topics including:

Home loans
Personal Loans
Car Loans
Cost of living
Budgeting

More resources on Finder

Ask a question

Click here to cancel reply.

Display name

Your email (will not be published)

Your question

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms Of Service and Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

More guides on Finder

Household Capital home loans
Read our detailed review of reverse mortgage lender Household Capital.
Average home loan interest rates in Australia 2026
We compile the average home loan interest rates in the market and update them monthly.
First Option Bank home loans
Your guide to home loan offers from First Option Bank.
Compare bank interest rates in November 2026
Compare current bank interest rates for home loans, credit cards, personal loans, savings accounts and term deposits to find the best deal for you.
Home loans for contractors
Searching for a home loan for contractors? When you don't earn a regular wage, find out how you can still get a home loan.
Investment home loan rates
The best investor home loan rates that have been offered in years have hit the market. Compare investment property loan rates today.
Cheap Home Loans Australia
Find the cheapest home loan rates and learn how to decide which one best fits your needs and will save you the most money.
Best variable home loan rates
Find a great deal on a variable interest rate home loan from lenders large and small. Start comparing and saving today.
Best home loan rates in Australia November 2026
Learn how to compare rates to find the best home loan and start saving money on your mortgage today.
Compare conveyancing services in your area
Compare conveyancing services to find a professional who can help you manage the legal side of buying or selling a property.

How to get a home loan in Australia in 8 steps

As one of the biggest financial decisions you may ever make, getting a home loan can seem overwhelming. Here’s our step-by-step guide to make it easier.