How much deposit do you really need in 2026?

Published 10 August 2026 · DeMarque Home Loans

“Save a 20% deposit” is the advice everyone’s parents gave. In 2026 it’s one option among several — and for many first home buyers, not the fastest one.

Here’s what each rung of the ladder looks like as at 10 August 2026.

20%: the no-questions route

With 20% down you avoid lenders mortgage insurance everywhere, access every lender’s full pricing menu, and start with meaningful equity. The catch is time: at Sydney prices, a 20% deposit can take the better part of a decade to save — during which prices may keep moving away from you.

10–15%: the LMI trade

Between 80% and 90% loan-to-value, lenders will typically lend with LMI — a one-off premium that can run from thousands to tens of thousands of dollars depending on the loan size and how far under 20% you are. Sometimes paying LMI to buy years earlier is a rational trade; sometimes it isn’t. It’s a numbers question, not a principles one.

Worth knowing: some professions (medical, legal, accounting among them, varying by lender) can qualify for LMI waivers at 90% or even 95% — lender policy territory where a broker’s lender knowledge pays for itself.

5%: the First Home Guarantee

Since 1 October 2025, eligible first home buyers can buy with 5% down and no LMI under the expanded First Home Guarantee — no income caps, no place limits, Sydney price cap $1.5 million. Full details in our First Home Guarantee guide.

2%: Help to Buy — different beast

The Commonwealth’s shared-equity scheme (launched December 2025) accepts a 2% deposit, with the government taking up to a 40% equity stake in a new home or 30% in an existing one. Income caps apply ($100,000 single / $160,000 couple), places are limited, and the government shares in your home’s future value — a structural difference that deserves proper advice, not just enthusiasm.

Speeding up whichever route you pick

The First Home Super Saver scheme lets you release up to $15,000 of voluntary super contributions per financial year — $50,000 in total — for a first home deposit. Because contributions can be made from pre-tax income, many savers reach a deposit faster inside super than outside it. The ATO administers the release; timing matters, so plan it before contract, not after.

The real question isn’t the deposit

It’s the repayments that follow. A smaller deposit means a bigger loan — test what that looks like with the repayments calculator and your borrowing capacity, then look at the whole picture in our complete 2026 first home guide.

Or shortcut it: the free home loan health check tells you which route fits your numbers.