How Much Deposit Do You Really Need to Buy a Home in Australia?
- Sheanne Siron
- Mar 10
- 2 min read
One of the biggest questions Filipino first-home buyers in Australia ask is: "How much deposit do I really need?" The answer isn’t always straightforward, but understanding the basics can help you plan better and get into your first home sooner.
Minimum Deposit Requirements
Typically, most lenders require at least a 5% deposit of the property purchase price. However, the more you can save, the better your borrowing power and the less interest you may pay over time.
What is Lenders Mortgage Insurance (LMI)?
If your deposit is less than 20%, you may be required to pay Lenders Mortgage Insurance (LMI). This protects the lender (not you) in case you default on your loan. LMI can cost thousands of dollars, so it’s important to factor it into your budget.
Can I Buy with Just a 5% Deposit?
Yes! With the right support and eligibility, Filipino first-home buyers can purchase a home with as little as a 5% deposit. Some government schemes even allow you to avoid paying LMI entirely under certain conditions.
Alternative Deposit Sources
Struggling to save a deposit? Here are some options:
Family guarantees: A parent or family member can use their home equity as security.
Government grants: Such as the First Home Guarantee Scheme or First Home Owner Grant (FHOG).
Gifted funds: Some lenders accept monetary gifts from family as part of your deposit.
Let's Calculate Your Options Together!
Still unsure how much deposit you really need? Don’t worry – we’re here to help. Book a FREE call with Mortgage Alley and we’ll walk you through your options and tailor a plan that works for you.
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