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# House deposit calculator: How much deposit do you need for a house?

## Use Finder's deposit calculator to figure out how much deposit you'll need to buy your property. Remember that while you can buy a house with a deposit below 20%, you will have to pay an LMI premium.

### Home loan deposit calculator

Property Value
\$
Required deposit
Current deposit saved
\$
Time frame of purchase

To buy a property with a % deposit you'd need to save and borrow . Your LVR would be .

• To buy a property with a % deposit you need . You need to save an extra over to reach your deposit.
• You need to save an extra a month or a week.
• You need to borrow with an LVR of .
• Congratulations! You already have enough money saved for a % deposit.

### Summary of your savings deposit

Difference between value and deposit (\$)
Your LVR (Loan to Value Ratio)
Your deposit as a % of the property value
To have 5% deposit you'd need
To have 10% deposit you'd need
To have 20% deposit you'd need

Finder's home loan deposit calculator can give you an indication of how much you need to save for a house deposit, or how much you have saved, based on information you put into the calculator. The calculator provides percentage calculations to help you understand the size of a given deposit (5%, 10%, 20%, 30% or 40%) relative to a property value.

The calculator does not take into account other property buying costs that may impact your deposit such as lenders mortgage insurance, stamp duty, conveyancing costs or mortgage registration fees.

### How to use Finder's mortgage deposit calculator

Our house deposit calculator has 2 modes: required deposit and current deposit saved.

#### Required deposit

Select required deposit if you have a rough idea of your property's value and just want a simple way to work out what a 5%, 10% or 20% deposit looks like.

1. Enter your property price (or an estimate).
2. Select your deposit size as a percentage.

#### Current deposit saved

Select current deposit saved if you've already saved some money and want to work out how much more you'll need.

1. Enter your property price (or an estimate).
2. Select your deposit size as a percentage.
3. Enter how much you've already saved.
4. Enter the timeframe in which you're planning to buy.

### How much deposit do you need to buy a house?

You need a deposit worth at least 5% of a property's value to get a loan. But there are other upfront costs too, including stamp duty and legal fees.

And if your deposit is under 20%, you'll also have to pay a lenders mortgage insurance premium (LMI).

House price5% deposit (95% loan)10% deposit (90% loan)20% deposit (80% loan)
\$650,000\$32,500\$65,000\$130,000
\$850,000\$42,500\$85,000\$170,000
\$1,000,000\$50,000\$100,000\$200,000
LMI required?YesYesNo

#### Do I need a 20% deposit for a house?

The standard Australian deposit size is 20% of the property's value. But you can get a home loan with a deposit as low as 10% or 5% if you're willing to pay LMI.

Here's an example:

You want to buy an \$800,000 property and you have a 10% deposit saved up plus a bit more for other expenses.

• Deposit: \$80,000
• Stamp duty: \$20,000
• Other costs: \$5,000
• Total: \$122,000

### How can I calculate my deposit size?

You can use the calculator above to quickly calculate your deposit. But if you're a bit confused about how to start, there are 2 ways to figure out roughly what your deposit should be.

1. Start with your property price. If you have a good idea of your property price you can break this down to a deposit size and loan amount.
2. Start with a deposit size. If you have a rough idea of how much you can save then you can multiply this to work out your property budget.

Many buyers start by working out a rough budget for their property. That is, what's the maximum you can afford to spend on a property?

Here's an example. We've excluded stamp duty and other costs for now.

#### Working out your deposit for an \$800,000 property

Property valueDeposit (%)Deposit amount
\$800,00020%\$160,000
\$800,00010%\$80,000
\$800,0005%\$40,000

With these estimates you can now look at borrowing amounts and loan repayments. Here, we're assuming a standard 30-year loan term:

#### Loan amount for an \$800,000 property

Deposit amount (\$)Interest rate (%)Loan amountMonthly repayments
\$160,0004.90%\$640,000\$3,397
\$80,0004.90%\$720,000\$3,822
\$40,0004.90%\$760,000\$4,034

These figures don't take into account stamp duty or LMI.

If you have a good idea of how much you can save for a deposit, then you can use that to calculate the price of the property.

Let's say you've saved \$30,000 and think you can save another \$20,000 by the time you're planning to buy. Your deposit is \$50,000.

ðŸ“Œ Multiply this by 5 to work out your budget with a 20% deposit. That's \$250,000.

ðŸ“Œ Multiply this by 10 to work out your budget with a 10% deposit. That's \$500,000.

ðŸ“Œ Multiply this by 20 to work out your budget with a 5% deposit. That's \$1,000,000.

This also doesn't take into account stamp duty or LMI. And if you bought a \$1 million property with just a 5% deposit you'd have to pay around \$43,000 in LMI.

### How to buy a house with a small deposit

Saving a 20% deposit is a tall order for many first home buyers. Here are some tips to get there and some ways to buy with a smaller deposit:

• Qualify for a home guarantee scheme. The First Home Guarantee and the Regional First Home Buyer Guarantee let eligible buyers purchase homes with 5% deposit. The government backs your loan and you borrow the remaining 95% while avoiding LMI.
• See if a family member can act as a guarantor. If your parents own a property and are willing to act as guarantors, many lenders will approve a home loan with a very small deposit. The catch? Your parents are exposed if you can't repay the loan.
• Get creative (and lucky). Move back in with your parents. See if they'll give you some cash as part of the deposit. Don't forget you can use a first home owners grant to form part of your deposit. Sell something. Look for a government shared equity scheme. It's extremely hard to save a deposit and none of these options may work for you. But one of them might.

### Is it worth paying LMI to buy a property sooner?

The extra cost of lenders mortgage insurance varies depending on your property's value and the amount you've saved. Finder has a handy LMI calculator which lets you estimate the LMI payable on different transactions.

Here are a few example calculations (keep in mind these are only estimates and may not reflect the figure you will be liable to pay):

House price5% depositLMI estimate
\$450,000\$22,500\$14,300
\$650,000\$32,500\$28,485
\$850,000\$42,500\$37,169

#### Can you buy with a 5% deposit and avoid paying LMI?

If you're a first home buyer who is eligible for one of the Home Guarantee Schemes, then you could buy a property with just a 5% deposit and skip LMI.

You can also avoid LMI with a guarantor. If someone guarantees your home loan, you can borrow 95% of a property's value and get LMI waived.

Susan Mitchell, former CEO of Mortgage Choice, shares her expert insights for buying a property with a low deposit.

How should buyers start working out their deposit?
"Work out what size deposit you need for the type of property you want to buy. It can be helpful to come up with a savings plan and timeline to achieve your goal so you have something to work towards. I recommend first time buyers to keep their savings in a separate bank account so that you resist the urge to spend it."
What do borrowers need to know about LMI?
"If you have to pay LMI on a low deposit loan, you don't have to pay it all up front. The amount may also be added or capitalised to your loan amount. If you have enough money saved to pay LMI upfront, you may be better off contributing it to the deposit amount and paying a smaller LMI premium."
What are the risks of having a deposit below 20%?
"The worst case scenario is if there is a significant fall in property values and you are unable to pay back your home loan and are forced to sell your home, you may not be able to recoup enough funds to repay the debt you owe."

### Start comparing home loans right now

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Name Finder Score Interest Rate p.a. Comparison Rate p.a. Fees Monthly Payment
Principal & Interest5% min. depositOwner-occupierOffset accountSpecial Offer
Principal & Interest5% min. depositOwner-occupierOffset accountSpecial Offer
Product Name G&C Mutual Bank First Home Buyer variable rate Principal & Interest 5.99% 6.02% \$0 \$5,000,000 40 years 95% Yes Yes Yes No No Yes
Finder score
9.1
Interest Rate
5.99%
Comparison Rate
6.02%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$900
Principal & Interest20% min. depositOwner-occupierRefinance Only
Principal & Interest20% min. depositOwner-occupierRefinance Only
Product Name Unloan Variable Home Loan variable rate Principal & Interest 5.99% 5.90% \$10,000 \$10,000,000 30 years 80% Yes No No No No Yes
Finder score
9.1
Interest Rate
5.99%
Comparison Rate
5.90%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$900
Principal & Interest10% min. depositOwner-occupierOffset account
Principal & Interest10% min. depositOwner-occupierOffset account
Product Name loans.com.au Solar Home Loan Variable rate Principal & Interest 5.99% 6.51% \$50,000 \$1,500,000 30 years 90% Yes Yes Yes Yes
Finder score
9.1
Interest Rate
5.99%
Comparison Rate
6.51%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$900
Principal & Interest-10% min. depositOwner-occupierNSW, QLD & ACT only
Principal & Interest-10% min. depositOwner-occupierNSW, QLD & ACT only
Product Name Greater Bank Great Rate Discount Variable Home Loan variable rate Principal & Interest 6.04% 6.05% \$150,000 N/A 110% Yes No Yes No No Yes
Finder score
8.7
Interest Rate
6.04%
Comparison Rate
6.05%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$905
Up to \$2,500 cashback
Eligible refinancers can get up to \$2,500 cashback depending on loan value. Full terms and conditions apply.
Principal & Interest20% min. depositOwner-occupier
Principal & Interest20% min. depositOwner-occupier
Product Name Macquarie Bank Basic Home Loan variable rate Principal & Interest 6.19% 6.21% \$150,000 \$10,000,000 30 years 80% Yes No Yes No No Yes
Finder score
8.4
Interest Rate
6.19%
Comparison Rate
6.21%
Fees
Application: \$0
Ongoing: \$0 p.a.
Monthly Payment
\$919
Showing 5 of 24 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.

Written by

#### Richard Whitten

Editor

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

Richard's expertise
Richard has written 538 Finder guides across topics including:
• Home loans
• Property
• Personal finance
• Money-saving tips

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