Buying your first home or investment property in Australia can be overwhelming, especially when it comes to saving for a deposit, understanding how much you need and knowing where to start.
At Moove, we simplify the buying process by helping you make informed decisions at every stage. This article breaks down everything you need to know about home deposits, answering key FAQs to give you clarity and confidence as you enter the property market.
What Is a Home Deposit?
A home deposit is the upfront payment you make toward the purchase price when signing a property contract. It’s held in a trust account until settlement and deducted from the total price. This deposit secures the property and proves your financial commitment.
How Much Deposit Do You Need to Buy a Home?
This is one of the most frequently asked questions we hear as buyer’s agents.
In Australia, lenders typically expect 20% of the property’s purchase price as a deposit. However, many buyers get started with as little as 5%, especially with government-supported schemes or family assistance.
Deposit Breakdown
- 20% deposit: Ideal for avoiding LMI (Lenders Mortgage Insurance) and securing better rates
- 5%-19% deposit: Feasible but usually triggers LMI
- 5% deposit with no LMI: Possible with the First Home Guarantee
- As low as 2% deposit: Available for eligible buyers via the Single Parent Guarantee Scheme
Your deposit options will impact not just loan approval but also the total cost of buying. At Moove, we help you identify the best deposit strategy for your goals and financial situation by putting you in touch with a mortgage broker who will best understand your situation and guide you to the right financial outcomes.
Where Can Your Home Deposit Come From?
Many buyers don’t realise there are multiple ways to fund a deposit beyond savings alone. These include:
- Personal savings (ideally in high-interest accounts)
- Family gifts or parental top-up
- Inheritance or shared equity
- Government schemes like the First Home Owner Grant
- Deposit bonds or bank guarantees (as cash alternatives)
We work closely with mortgage brokers to confirm these sources and ensure they’ll be accepted by lenders an vendors.
Benefits of a Larger Deposit
While it’s possible to buy with 5%, a larger deposit brings significant advantages:
- Lower Loan to Value Ratio (LVR) means better loan terms and interest rates
- Avoids LMI, saving you thousands
- More flexibility in borrowing
- Stronger negotiation power, especially in competitive markets
- Greater protection if property values fluctuate
As buyers agents, we’ll help you balance speed to market with deposit size, so you don’t delay the journey unnecessarily.
Tips to Save Your Home Deposit Faster
Saving for a deposit can feel daunting, but with the right plan, it’s achievable. Here’s how to speed it up:
- Set a clear savings goal
- Open a dedicated deposit account with bonus interest
- Funnel in tax returns, bonuses or windfalls
- Use the First Home Super Saver Scheme (FHSSS)
- Cut back expenses with a strict (but realistic) budget
- Consider rentvesting: rent in your ideal location while buying in a more affordable area
We help clients identify shortcuts through grants, schemes and better location choices to fast-track their first property purchase.
How to Prepare Financially Before Buying
Before starting your property search, it’s essential to get financially prepared. That’s where we can help you stay on track:
- Assemble your team: mortgage broker, buyers agent and conveyancer
- Understand your borrowing power and how it differs from what you can comfortably afford
- Clarify your deposit sources and make sure they’re lender-friendly
- Get pre-approval to show sellers you’re serious and set a clear budget
- Budget for additional costs like stamp duty, inspections, loan fees, legal costs and moving expenses
Applying for a Home Loan: Your Next Steps
If you’re ready to move forward, here’s how we recommend structuring your next steps:
- Review your current savings and set a realistic deposit target
- Book a free strategy session with us to start your search with expert buyers agents by your side
- Build a custom savings plan or explore eligible deposit schemes
- Work with a mortgage broker to get pre-approval
Why Work With Moove Buyers Agents?
Navigating your first home or investment property journey is easier with expert help.
We are here to:
- Help you assess and optimise your deposit strategy
- Match your budget to realistic, growth-oriented suburbs
- Give you access to off-market properties
- Negotiate the best price while protecting yourself from overpaying
- Provide end-to-end guidance from pre-approval to settlement
Ready to Buy Property Better With Moove?
Whether you’re just starting your savings journey or already pre-approved, Moove Buyers Agents can help you:
- Clarify your deposit options
- Buy faster with less risk
- Avoid costly mistakes
- Access the best properties in your budget
Book your free 30-minute strategy session today and take the first step toward buying property with confidence.
