Deposit and loan-to-value ratio
The loan-to-value ratio compares the loan amount with the lender-assessed property value. A larger deposit generally reduces the ratio and may broaden available options.
What counts as genuine savings
Some applications require funds that have been held or accumulated over a period. The acceptable amount and evidence vary by lender, and rent history or other sources may be treated differently.
Buying costs outside the deposit
Allow for government charges, conveyancing, inspections, loan or valuation fees, insurance and moving costs. Concessions may reduce some costs for eligible buyers.
Options when the deposit is smaller
Potential pathways may include a government guarantee, family guarantee, gift or a loan with lenders mortgage insurance. Each has eligibility rules, costs and risks that should be understood first.
Common questions
Questions first home buyers ask
Can a first home buyer purchase with a 5% deposit?
Some eligible buyers may qualify for a participating lender loan or government-supported pathway with a smaller deposit. Approval, property limits and scheme eligibility still apply.
Does my deposit include stamp duty and legal costs?
No. The purchase deposit and other buying costs are separate. Plan the total funds required rather than using every dollar as the contract deposit.
Can my family gift part of my deposit?
Some lenders accept gifted funds, subject to evidence and policy. A gift is different from a repayable family loan, which may affect the assessment.