PropPocket · Buyer guide
5%, 10% or 20% deposit: what changes?
A smaller deposit reduces the cash needed to enter, but usually means a larger loan, higher repayments and possibly lenders mortgage insurance (LMI). Compare the whole purchase: deposit, duty, fees and ongoing ownership costs. A 20% deposit is not a universal requirement.
By PropPocket · Reviewed 16 October 2026 · Figures in Australian dollars
Compare my deposit optionsOne property, three deposit choices
Illustration: $1,000,000 NSW home, repeat buyer, 6.1% interest, 30-year principal-and-interest loan, $10,550 annual holding costs and $3,600 buying-cost allowances. These are model inputs, not market averages or quotes.
| Deposit | Deposit cash | LMI estimate | Cash to buy | Weekly cost |
|---|---|---|---|---|
| 5% | $50,000 | $30,400 | $123,187 | $1,531 |
| 10% | $100,000 | $19,800 | $162,587 | $1,461 |
| 20% | $200,000 | $0 | $242,787 | $1,322 |
Calculated with the same engine as BidReady. Cash to buy includes $39,187 indicative duty, deposit, LMI and the allowances above. Weekly cost includes loan principal and holding costs. Moving costs and a retained emergency reserve are excluded. The model treats LMI as cash paid upfront; if your lender finances it, cash and repayments will differ. Obtain a lender quote.
Check whether LMI applies to your loan
LMI protects the lender. An eligible buyer using the Australian Government 5% Deposit Scheme may avoid it; profession-based lender waivers and other arrangements also exist. Neither first-home status nor a 5% deposit proves eligibility.
In BidReady, select First home buyer and compare scheme settings, or enter a confirmed LMI quote. Scheme eligibility and borrowing approval must be checked with a participating lender. Compare the larger loan and ongoing cost even if LMI is waived.
Buying now versus waiting is a separate question
This table changes the deposit on the same property at the same date. It does not forecast when you will save 20%, future rent or house prices. Waiting can leave you with more cash and less debt; prices may rise, remain flat or fall. Use more than one price and rate scenario rather than assume a direction.
BidReady lets you change the inputs, save scenarios and open a printable property brief. It does not certify what a bank will lend or what your household can comfortably afford.
Compare twelve worked scenarios
See the NSW deposit-cost scenario study: four prices, three deposits, downloadable figures and a reproducible method. These are modelled examples, not a sample of buyer transactions.
Sources and checks
- Australian Government: 5% Deposit Scheme and eligibility
- Helia: indicative LMI and upfront versus capitalised premiums
- ASIC Moneysmart: deposit, buying costs and borrowing
- NSW duty source and cash-to-complete example
LMI is a planning proxy, not an insurer quote. Duty models selected common rules; confirm exceptions and concessions before relying on a result.