First Home Buyers·8 August 2026·1 min read
How much deposit do you really need in Melbourne?
Five percent gets quoted a lot. Here's the full cash figure once stamp duty, LMI and fees are counted.
The five percent deposit figure is technically true and practically misleading. Deposit is only one part of the cash you need at settlement.
Alongside the deposit itself you need to fund stamp duty (unless a concession applies), lender establishment fees, conveyancing, building and pest inspections, and often a shortfall buffer.
Lenders mortgage insurance is the other variable. On a low deposit it can add tens of thousands to the loan. It should be a decision, not a surprise.
The useful exercise is to work backwards from a target purchase price, list every cost line, and set a savings timeline against it.
General information only. This article does not take your personal circumstances into account and does not constitute credit advice.