How Much Deposit Do First Home Buyers Need in Sydney vs. Melbourne vs. Brisbane?
Quick answer: A 20 percent deposit is the highest you would ever need, but most first home buyers pay far less. With a 5 percent deposit through the First Home Guarantee, a buyer in Melbourne needs roughly $41,000, while a buyer in Sydney needs roughly $65,000, based on current median dwelling values. The exact figure depends on the city, the price of the home, and whether it falls under your state’s First Home Guarantee price cap and stamp duty exemption threshold, both of which vary significantly across Australia.
Ask how much deposit you need to buy a first home, and the honest answer is that it depends entirely on where you are buying. A 5 percent deposit in Darwin and a 5 percent deposit in Sydney are not remotely the same amount of money.
This guide breaks down the real dollar figures across all eight capital cities, what the hidden costs on top of your deposit look like, and how federal and state support can reduce what you need to save. For a broader walkthrough of the whole process, our beginner’s guide to buying a house in Australia is worth reading alongside this one.
How much deposit do you need in each capital city?
The table below shows 5 percent, 10 percent, and 20 percent deposits based on the current median dwelling value in each capital, which blends houses and units together. A unit-only or smaller, older house will usually sit below these figures, while a typical freestanding house in the same city often sits above them.
| Capital city | Median dwelling value | 5% deposit | 10% deposit | 20% deposit |
|---|---|---|---|---|
| Sydney, NSW | $1,296,000 | $64,800 | $129,600 | $259,200 |
| Melbourne, VIC | $826,000 | $41,300 | $82,600 | $165,200 |
| Brisbane, QLD | $1,081,000 | $54,000 | $108,000 | $216,200 |
| Perth, WA | $989,000 | $49,500 | $98,900 | $197,800 |
| Adelaide, SA | $923,000 | $46,200 | $92,300 | $184,600 |
| Hobart, TAS | $729,000 | $36,400 | $72,900 | $145,800 |
| Darwin, NT | $602,000 | $30,100 | $60,200 | $120,500 |
| Canberra, ACT | $903,000 | $45,200 | $90,300 | $180,700 |
Median dwelling values from Cotality’s Home Value Index, data to the end of February 2026. Property values move every month, so treat these as a current guide rather than a fixed figure, and confirm a specific suburb’s pricing before budgeting around it.
The growth pattern behind these numbers is also worth knowing. Perth, Adelaide, Brisbane, and Darwin have all recorded strong annual growth recently, while Sydney and Melbourne have been close to flat. That does not make one city a better or worse place to buy, but it does mean the deposit you need today may look different again in twelve months, particularly in the faster-moving markets.
One more thing worth flagging here. In six of the eight capitals, the median dwelling value above is actually higher than that state’s First Home Guarantee price cap, which we cover in detail further down. A buyer chasing the literal median-priced home in Brisbane, Perth, Adelaide, Hobart, Darwin, or under the old Darwin cap may find themselves just outside the cap at that exact price point, even though plenty of individual properties in each city sit comfortably under it.
The hidden costs of buying, beyond your deposit
Your deposit is the headline number, but it is rarely the only cash you need on settlement day. A handful of other costs sit on top of it.
Stamp duty. This is usually the largest extra cost, and it varies enormously by state and by whether you qualify for a first home buyer exemption, which we cover in the next section. Where no exemption applies, stamp duty on an average capital city home can easily run from the high teens to over $40,000.
Conveyancing or solicitor fees. Typically somewhere between $800 and $2,500 depending on the state and the complexity of the contract, covering contract review, title searches, and coordination through to settlement.
Building and pest inspection. Usually $400 to $800 for a standard house, often at the higher end in capital cities. This is optional in a strict legal sense but rarely worth skipping.
Lenders Mortgage Insurance. If your deposit is below 20 percent and you do not qualify for a waiver or government scheme, LMI can add anywhere from a few thousand dollars to well over $20,000 on a higher priced property.
Mortgage registration and government fees. Usually a few hundred dollars, covering the cost of registering the lender’s interest on the property title.
Ongoing costs from day one. Council rates, water rates, building insurance, and strata fees for apartments all start from settlement, so it helps to know the approximate figures for your specific property before you commit.
As a rough rule of thumb, many buyers budget an extra 3 to 5 percent of the purchase price on top of their deposit to cover these costs, though the real figure depends heavily on your state and whether you qualify for any exemptions.
Federal and state help that can lower your deposit
Two main types of support can reduce what you need to save. The First Home Guarantee is a federal scheme that lets eligible buyers purchase with a smaller deposit and no LMI. Stamp duty exemptions are a separate, state-based saving that reduces or removes one of your biggest upfront costs.
The First Home Guarantee allows eligible first home buyers to purchase with just a 5 percent deposit, with the government guaranteeing the rest of the deposit shortfall to your lender so you avoid paying LMI. As of October 2025, the scheme no longer has income caps or a limited number of places, though it still applies a property price cap that varies by state and region.
Stamp duty exemptions work differently in every state, and several are changing very soon. The table below summarises both in one place.
| State / territory | First Home Guarantee cap (capital city) | First home buyer stamp duty exemption |
|---|---|---|
| New South Wales | $1,500,000 | Full exemption up to $800,000, sliding concession to $1,000,000 |
| Victoria | $950,000 | Full exemption up to $600,000, sliding concession to $750,000 |
| Queensland | $1,000,000 | Full exemption up to $700,000, partial concession beyond that |
| Western Australia | $850,000 | Full exemption up to $430,000, partial concession to $530,000 |
| South Australia | $900,000 | Full exemption on new homes only, no price cap. No specific concession on established homes |
| Tasmania | $700,000 | Full exemption up to $750,000 on new and established homes, currently legislated to expire 30 June 2026 |
| Australian Capital Territory | $1,000,000 | Full exemption up to $1,020,000, currently income-tested, with the income test due to be removed from 1 July 2026 |
| Northern Territory | $600,000, rising to $750,000 in Darwin from 1 July 2026 | No first home buyer stamp duty exemption, though the Territory offers larger first home owner grants instead |
First Home Guarantee caps sourced from the Australian Government’s official price cap table, current as of June 2026. Stamp duty figures are a general guide only and change with each state budget, so confirm the current threshold with your state revenue office or conveyancer before relying on it. Tasmania and the ACT both have changes scheduled for 1 July 2026, so double check the current position if you are reading this after that date.
A real example: buying in Brisbane with a 5 percent deposit
Mia is a registered nurse buying her first home, a $650,000 unit in Brisbane. Here is roughly what she needs upfront.
- 5% deposit: $32,500
- Stamp duty: $0, since $650,000 sits under Queensland’s $700,000 first home buyer exemption
- Conveyancing: approximately $1,200
- Building and pest inspection: approximately $600
- Mortgage registration and other government fees: approximately $250
Total upfront cash needed: approximately $34,550, instead of the $130,000 a 20 percent deposit alone would require on the same property. Because Mia works as a registered nurse, she may also be able to combine this with a profession-based LMI waiver. Our guide on LMI waivers for nurses and midwives covers how that works alongside government schemes like this one.
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How to avoid LMI with a small deposit
Lenders Mortgage Insurance applies once you borrow more than 80 percent of a property’s value, and it can add tens of thousands of dollars to your loan. There are a few legitimate ways to avoid it even with a smaller deposit.
The First Home Guarantee is the most widely accessible route, since it removes LMI entirely for eligible buyers with a 5 percent deposit, provided the property sits under your state’s price cap. A guarantor loan, where a family member offers equity in their own home as additional security, is another common path, though it carries real risk for the guarantor and should be discussed carefully before committing.
A smaller number of lenders also waive LMI for certain professions, such as nurses, doctors, and other healthcare workers, regardless of government scheme eligibility. Our guide to LMI waivers for nurses and midwives covers how those policies work and what they typically require.
Because eligibility for all of these options depends on your specific deposit, income, and the property you are looking at, comparing them properly usually means checking multiple schemes and lenders at once rather than assuming only one applies. Our First Home Buyers service compares all of this across 50+ lenders for exactly that reason.
Common questions about deposits and government schemes
Do I need a 20 percent deposit to buy my first home?
Does the First Home Guarantee mean the government pays part of my loan?
If my state has a stamp duty exemption, do I still need a deposit?
Can I use the First Home Guarantee for an investment property?
Does my deposit need to be 100 percent genuine savings?
Work out your exact figure with a broker
The numbers above are a starting point, but your actual deposit depends on the specific property, your eligibility for government schemes, and which lenders suit your situation. Book a free, no obligation chat with the Laxmi Home Loans team to work out exactly what you need to save.
Book a free consultation or call 0433 589 626.
This article is general information only and does not take into account your personal financial situation, objectives, or needs. It is not financial, tax, or legal advice. Property values, government scheme price caps, and state stamp duty thresholds change regularly, so confirm current figures with your broker, conveyancer, or relevant state revenue office before making a decision.
Laxmi Home Loans is the trading name of Mero Chino Groups Pty Ltd, ABN 76 169 013 012, Credit Representative Number 476974, authorised under Australian Credit Licence Number 383640.
