How Much Deposit Do I Need?

The old rule was 20% — and it’s still the benchmark that lets you avoid extra costs. But the honest answer in 2026 is that plenty of buyers get into a home with far less. What deposit you need depends on whether you’re willing to pay lenders mortgage insurance, and whether you qualify for a government scheme that waives it.

The three deposit tiers

• 20% deposit — the classic. No lenders mortgage insurance, the widest lender choice, and the strongest position. On a $450,000 Gippsland home that’s $90,000 — a big ask, and years of saving for most.
• 5%–19% deposit — absolutely doable, but under 20% most lenders charge lenders mortgage insurance (LMI) — a one-off cost (often $8,000–$20,000+) that protects the lender, not you. It can be added to the loan. Sometimes buying sooner with LMI beats waiting years to save 20%; we’ll do that maths with you.
• 5% or even 2% with NO LMI — through the government guarantees. Eligible first home buyers can buy with a 5% deposit and zero LMI under the First Home Guarantee; eligible single parents with just 2%. On a $450,000 home that’s the difference between $90,000 and $22,500 — or $9,000. See our First Home Guarantee guide.

What actually counts as a deposit

It’s not only cash in a savings account. Depending on the lender, your deposit can come from:

• Genuine savings — money you’ve saved over time (most lenders want to see some, usually 5% saved over 3+ months).
• A gift from family — commonly a “gift letter” is needed; rules vary by lender.
• The First Home Super Saver Scheme — voluntary super contributions you can withdraw for a first home deposit.
• Equity in another property — if you already own, usable equity can serve as your deposit for the next purchase.

Don’t forget the costs beyond the deposit

Your deposit isn’t the only upfront money. Budget for stamp duty (though first home buyers pay zero under $600,000 in Victoria — check yours on our stamp duty calculator), conveyancing, building and pest inspections, and loan fees. The good news for Gippsland buyers: with lower purchase prices than Melbourne, every one of these costs is smaller too.

The fastest way to your number

The deposit you need is tied to what you can borrow — so start with our free borrowing power calculator, then book a free chat. We’ll show you the deposit for your target price, whether a scheme wipes your LMI, and whether buying now with a smaller deposit beats waiting. It costs you nothing — the lender pays us at settlement.

We help buyers plan their deposit right across Gippsland — Traralgon, Morwell, Moe, Warragul, Sale and every town between. Whether it’s a first home, a refinance or an investment, rated 5.0 from 131 Google reviews. Call 1300 442 497.

1. Understanding Your Needs

Your mortgage journey begins with a detailed consultation with your Finance & Mortgage Broker. Your broker will listen to your property goals, whether you’re buying a home, investing in real estate, or seeking a commercial loan. They will assess your financial situation, considering factors like income, savings, liabilities, and credit history, to provide tailored advice on loan options available to you.

2. Financial Positioning

The next step involves your broker conducting a thorough evaluation of your financial position. This includes reviewing your income, bank statements, assets, liabilities, credit history, and savings. Your broker will then calculate your borrowing capacity, helping you understand how much you can afford to borrow and how much your monthly repayments might be. Your broker will also assess whether you qualify for any interest rate discounts or government schemes, like first-home buyer grants

3. Comparing Loan Options

Once your financial situation is fully assessed, your broker will begin comparing loan products from a range of lenders across Australia. They will help you weigh the benefits of fixed interest rate loans versus variable interest rate loans, as well as exploring options for offset accounts and interest rate discounts. They will also explain important terms like loan features, fees, and other considerations like the potential for future rate changes or LVR adjustments.

4. Pre-Approval Process

Pre-approval is a crucial step in the property buying process. With pre-approval, you’ll have a clear idea of the loan amount you can borrow, which strengthens your position in the local property market. Your broker will help you gather the necessary documents and submit them to the lender for pre-approval, ensuring the process is as quick and straightforward as possible.

5. Submitting the Loan Application

Once pre-approval is in hand, your broker will help you complete the loan application. They will guide you through submitting all necessary paperwork to the lender, including documents like bank statements, proof of income, and details of existing liabilities. Your broker will communicate directly with the lender to ensure the application is processed quickly, ensuring no delays in getting you the loan you need.

6. Loan Approval & Settlement

After your loan is approved, your broker will review the final loan offer with you and help arrange any necessary insurance, such as mortgage protection insurance. They will also work with you to ensure you understand the terms of the loan and guide you through the settlement process. Your broker will remain available to help you navigate any final hurdles before you complete the purchase of your property.

7. Finalising Ownership

The final step is settlement, when your loan is officially advanced, and you take ownership of the property. Your broker will coordinate with the lender and conveyancer to ensure the transfer goes smoothly. Once the settlement is complete, you’ll officially become the owner of the property, and your Finance & Mortgage Broker will continue to offer guidance to help you manage your loan and stay on track with repayments.