First Home Buyers - how much of a deposit do you need?

June 30, 2017
Tiffany Middleton

As of the 1 July 2017 if you are a first home buyer and you purchase a property valued under $600,000 in Victoria you will not have to pay the State Government tax of stamp duty….. yay!

This change will reduce the minimum deposit you require to purchase a first home.

Obviously the more deposit you have, the less of a loan you will require, but sometimes you might feel you need to get into the market now, rather than saving for more years.

The minimum deposit most banks expect you to have, is made up of 5% of the purchase price, the fees, and lenders mortgage insurance.

The fees you will need to have, are for your conveyancer, bank settlement costs, and Government Mortgage and Registration transfer fees.

The other big fee is Lenders Mortgage Insurance. This is the levy for the insurance policy the bank takes out to protect itself if you default on your loan. This policy does not protect you in any way. This fee can vary greatly between banks and is often a key factor I look at when choosing which bank is going to be the best for you.

Based on all of this here is table outlining the minimum deposit it may vary depending on your exact situation but will give you a good guide if you are close ….


Purchase Price

Total Costs

Estimated Lenders Mortgage Insurance

Total Minimum deposit required.


































How long do I need to have this deposit for?

Most banks need to see this deposit amount either accumulated, or held over at least a three month period. If this is not possible, some banks will use your rental history as proof of savings.

If you do not have this much, the other way to get into the market is using a family guarantee, or taking advantage of the additional Government Grants available when buying a home off the plan or building.  I will give you further details about these two options in my next blog posts.

If you have any questions about the contents of this blog post or you would like to discuss your individual situation further please do not hesitate to give me a call on 0412 697 726 or email me

Have a great week     

Posted in: First home buyers

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