How Much Do You Need for a Home Deposit? The Complete Guide

Saving for a home deposit is often the biggest hurdle for first-time buyers.

But how much do you really need to get into the market? The answer isn’t one-size-fits-all; it depends on the property price, your financial position, and the lender you’re working with.

The 20% Rule: When You Can Bend It

Traditionally, buyers aim to put down 20% of the purchase price as a home deposit. On a $700,000 property, that means saving $140,000. This is often considered the “safe zone” because it usually avoids extra fees like Lenders Mortgage Insurance (LMI).

However, that 20% isn’t mandatory. Some lenders accept deposits as low as 5%. The catch? You’ll likely pay LMI, which can add thousands to your costs. LMI is designed to protect the lender—not you—if you default on the loan. It’s a cost many buyers overlook.

Ready to take the first step toward your home deposit goal? Talk to the expert Logan mortgage brokers at Cube Home Loans. We’ll help you assess your deposit options, work through the fine print, and get you closer to owning your home. Call 1800 774 756 or visithttps://www.cubeloans.com.au to get started.

First-Home Buyer Perks You Might Qualify For

If you're buying your first home, you may be eligible for government support. The First Home Guarantee, for example, allows qualifying buyers to purchase with just a 5% home deposit, and skip the LMI cost entirely. Eligibility rules apply, but it’s a solid option that can fast-track your entry into the market.

Don’t Forget the Other Costs

A home deposit is just part of the financial puzzle. You’ll also need to budget for stamp duty (unless you qualify for exemptions), legal fees, building inspections, moving costs, and possibly loan application fees. Having extra funds on hand is crucial so you’re not financially stretched from day one.

So, How Much Should You Really Save?

While 20% remains the standard target, many buyers successfully enter the market with less.

The key is knowing your options, understanding the trade-offs, and choosing a path that fits your financial reality.

Whether you're aiming for a full 20% home deposit or exploring low-deposit alternatives, guidance matters. At Cube Home Loans, our experienced Logan mortgage brokers work with you to map out a clear plan, from savings strategy to loan approval.

Call 1800 774 756 or visithttps://www.cubeloans.com.au to book your free consultation today.