Australian guide
Planning an Australian home-deposit target
The deposit is only one part of the cash needed to buy a home. A realistic target separates the purchase deposit, transaction costs, moving costs and money that should remain available after settlement.
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Separate the deposit from other buying costs
The percentage deposit is calculated from the intended purchase price, but the cash target may also need to cover stamp duty, conveyancing, inspections, lender fees, registration charges, moving and initial repairs. State concessions can change some costs and should be checked with the relevant revenue authority.
Keep an emergency reserve separate from settlement money. Using every dollar at settlement can turn an ordinary repair, insurance excess or rate notice into new high-cost debt.
Understand loan-to-value ratio
The loan-to-value ratio compares the loan amount with the lender's accepted property value. A smaller deposit produces a higher ratio and may affect product availability, pricing and lenders mortgage insurance. The lender's valuation can differ from the agreed purchase price.
Government support schemes and lender policies can alter the deposit requirement, but eligibility and availability need to be confirmed directly. A calculator should not assume approval under a particular scheme.
Turn the target into a savings schedule
Subtract existing dedicated savings from the complete cash target, choose a timeframe and calculate the regular contribution required. Then stress-test the schedule for a lower savings rate, a higher property price and unexpected costs. Interest earned can help but should not compensate for an unaffordable contribution target.
- Deposit based on a realistic price range
- State and transaction costs
- Moving and immediate property costs
- Emergency cash retained after settlement
Recheck before making an offer
Update the calculation using a recent lender indication, current state charges and the actual property price. Pre-approval is usually conditional and does not replace final approval, valuation, legal review or an independent assessment of whether repayments fit the household budget.
Use the related calculators
Apply the guide with your own figures. Save the assumptions with the result and recheck them when rates, costs or circumstances change.
Official sources
CalcAussie reviews these pages against current Australian Government guidance.
General information only. This guide does not take your personal tax, financial or employment circumstances into account.