Deposit & LVR Calculator — How Much Deposit Do You Need?
Work backwards from a property price and target LVR to see how much deposit you need, or enter your savings to see what LVR you can achieve. Includes stamp duty, LMI, and other purchase costs in the calculation.
Understanding Deposits, LVR, and Purchase Costs
Your deposit is not the same as the total cash you need to buy a property. On top of the deposit (the portion of the price you pay upfront), you also need to cover stamp duty, legal and conveyancing fees (typically $1,500–$3,000), building and pest inspections ($500–$800), loan application fees ($0–$600), and potentially LMI if your deposit is below 20%. These costs can add $30,000–$60,000 to the cash required at settlement.
The Loan-to-Value Ratio (LVR) is the percentage of the property's value that you borrow. An LVR of 80% means you have a 20% deposit. An LVR of 95% means you have just a 5% deposit. The lower your LVR, the better your interest rate and the lower your risk of negative equity.
How Much Deposit Is Enough?
There is no single right answer, but here are the common thresholds and what they mean for Australian buyers:
- 20% deposit (80% LVR): The gold standard. No LMI required, best interest rates, most lender options.
- 15% deposit (85% LVR): Small LMI premium (~0.7% of loan), still good rate options.
- 10% deposit (90% LVR): Moderate LMI (~1.5–2% of loan). Viable with solid income and employment history.
- 5% deposit (95% LVR): Maximum borrowing. High LMI (3.5–5% of loan) unless covered by government guarantee. Limited lender choice.
Strategies to Build Your Deposit Faster
Saving a 20% deposit on a $700,000 property ($140,000 plus costs) takes most households several years. Here are strategies that can accelerate the process:
- First Home Super Saver Scheme (FHSSS): Make voluntary super contributions (up to $15,000/year, $50,000 total) and withdraw them for your deposit. The tax savings of contributing through super effectively boost your deposit by 15-30% compared to saving from after-tax income.
- First Home Guarantee: Buy with just 5% deposit and no LMI through the government guarantee scheme (35,000 places per year).
- State grants and concessions: Combine the Federal FHOG with state stamp duty concessions — in some states this is worth $30,000+ in combined benefits.
- Family guarantee: A parent pledges equity in their property as security, allowing you to borrow up to 100% of the purchase price without LMI.