Home Deposit Race

Most lenders require a minimum 5% deposit, but you'll need 20% to avoid paying Lenders Mortgage Insurance (LMI). A 10% deposit is a common middle ground.

For a $800,000 home, that's $40,000 (5%), $80,000 (10%), or $160,000 (20%).

The FHSS lets you save for your first home inside your super fund, benefiting from the lower super tax rate (15%). You can contribute up to $15,000 per year (max $50,000 total) in voluntary contributions, then withdraw them plus deemed earnings when you're ready to buy.

Stamp duty (transfer duty) varies by state and property price. For example, in NSW a $800,000 property attracts about $31,000 in stamp duty.

First-home buyers often get exemptions or concessions — in NSW, FTBs pay no stamp duty on homes up to $800,000.

The FHOG is a one-off government grant for first-home buyers purchasing new homes. Amounts vary: $10,000 in NSW/VIC/WA/NT, $15,000 in SA, $30,000 in QLD and $20,000 in TAS (down from $30,000 for contracts from 1 July 2026).

It generally applies only to new builds, not established homes.

According to ABS data, the average first-home buyer takes about 5-6 years to save a 20% deposit. This varies hugely by location — Sydney can take 8+ years while regional areas might take 3-4 years.

Using the FHSS scheme and government grants can shorten this timeline.

A 20% deposit avoids Lenders Mortgage Insurance (LMI), which can cost $10,000-$35,000. However, saving 20% takes much longer, during which prices may rise.

Many first-home buyers enter the market at 5-10% and factor in LMI as a cost of getting in sooner.