Calculate your deposit amount, home loan amount, and monthly repayment — and see whether lenders mortgage insurance may apply.
Rates as of Q2 2025 (example)
This calculator computes the deposit amount in dollars for a given property price and deposit percentage, the resulting loan amount and loan-to-value ratio (LVR), the monthly loan repayment, and whether lenders mortgage insurance (LMI) is likely to apply. It helps you understand the upfront cash required and the ongoing repayment commitment at different deposit levels.
The deposit is a percentage of the purchase price, which reduces the loan amount and determines the LVR. The monthly repayment is then calculated using the standard amortisation formula on the loan amount.
Formula: Deposit Amount = Property Price × Deposit %. Loan Amount = Property Price − Deposit. LVR = (Loan Amount ÷ Property Price) × 100%. Monthly Repayment = [Loan × Monthly Rate] ÷ [1 − (1 + Monthly Rate)−Months].
Example: A A$650,000 property with a 10% deposit (A$65,000): Loan = A$585,000. LVR = 90% — above 80%, so LMI will likely apply. At 6% interest (example rate — enter your actual rate) over 30 years: Monthly repayment ≈ A$3,507.37. Total interest ≈ A$677,653.41. Increasing the deposit to 20% (A$130,000) would reduce the loan to A$520,000, the monthly repayment to A$3,117.66, and avoid LMI. (Note: this example is for illustration purposes only.)
The deposit is the single largest upfront cost for most Australian homebuyers, and the amount you save directly affects your loan size, monthly repayment, and whether you pay lenders mortgage insurance (LMI). The minimum deposit accepted by most lenders is 5% of the property value, though some lenders require 10-20%. Any deposit below 20% (LVR above 80%) typically triggers LMI — a premium paid by the borrower to protect the lender, which can add A$5,000-A$30,000 or more to the cost of purchasing depending on the loan size and LVR. For first home buyers in Australia, several government schemes can reduce the deposit required to enter the market: the First Home Guarantee (previously the First Home Loan Deposit Scheme) allows eligible first home buyers to purchase with as little as a 5% deposit without paying LMI, with the federal government guaranteeing up to 15% of the property value on behalf of the buyer — effectively giving access to an 80% LVR product at a 5% deposit. The Family Home Guarantee allows eligible single parents to purchase with a 2% deposit. State governments also offer first home buyer grants and stamp duty concessions that vary by state. In addition to the deposit itself, buyers need funds for stamp duty (unless exempt), legal and conveyancing fees, building and pest inspections, loan application fees, and moving costs — these additional costs can add 3-5% or more of the property price for buyers in New South Wales, Victoria, and Queensland where stamp duty is substantial.
The minimum deposit accepted by most Australian lenders is 5% of the property value, though some require 10% and a 20% deposit is generally needed to avoid lenders mortgage insurance (LMI). Government schemes like the First Home Guarantee allow eligible first home buyers to purchase with as little as 5% without paying LMI (by having the government guarantee part of the loan). In addition to the deposit, you need funds for stamp duty, legal fees, and other purchase costs.
LMI is insurance paid by the borrower to protect the lender against the risk of default when the deposit is less than 20% (LVR above 80%). Despite protecting the lender, the borrower pays the premium — which can be several thousand to tens of thousands of dollars depending on the loan size and LVR, and is typically added to the loan amount. LMI allows borrowers with smaller deposits to access home loans they otherwise might not qualify for, but at a cost. The premium is generally non-refundable if you sell or refinance.
The First Home Guarantee (FHBG) is an Australian Government scheme that allows eligible first home buyers to purchase with a deposit as low as 5% without paying lenders mortgage insurance. The government provides a guarantee of up to 15% of the property value to participating lenders, effectively treating the purchase as if the buyer had a 20% deposit for LMI purposes. Places are limited each financial year and eligibility criteria apply (income caps, property price caps, owner-occupier requirement). Check the Housing Australia website for current places, eligibility, and participating lenders.
This is one of the classic housing dilemmas in Australia. Saving a larger deposit (to 20%) avoids LMI and reduces your loan size and monthly repayments — but takes longer, during which property prices may rise (increasing the target deposit) or fall. Entering sooner with a smaller deposit means paying LMI and higher repayments, but captures any capital growth sooner. The right answer depends on your local market, your income stability, and your personal risk tolerance. There is no universally correct answer.
No — the deposit is the largest single item, but buyers also need to budget for: stamp duty (varies by state, value, and buyer type — see our Property Stamp Duty Calculator), legal and conveyancing fees (typically A\$1,500-A\$3,000), building and pest inspections, loan application or establishment fees, home and contents insurance (required by the lender from settlement), removalist costs, and potentially LMI if your deposit is below 20%. Total upfront costs beyond the deposit commonly range from 3-5%+ of the property price.
Yes — the First Home Super Saver Scheme allows eligible first home buyers to make voluntary superannuation contributions and withdraw them (plus associated earnings) to fund a home deposit. The tax advantage comes from contributions being taxed at the concessional super rate (15%) rather than your marginal income tax rate. There are annual and total limits on the amounts that can be contributed and withdrawn. See the ATO's FHSS guidance for current limits and eligibility criteria.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only and do not constitute financial advice. The interest rate used is an example only — actual rates vary by lender and LVR. This calculator does not include LMI, stamp duty, or other purchase costs. LMI applicability depends on the specific lender's policies and the LVR of the loan. Eligibility for government first home buyer schemes is subject to income caps, property price caps, and other criteria that change over time. Consult a qualified financial adviser or mortgage broker for advice specific to your circumstances.