Question 1

How much deposit do I need to buy a house in Australia?

Accepted Answer

Most lenders require a minimum 5–10% deposit, but a 20% deposit is recommended to avoid Lenders Mortgage Insurance (LMI). For a $650,000 property, that means $130,000. First home buyers may qualify for government schemes with as little as 5% deposit.

Question 2

Does interest on my savings really make a big difference?

Accepted Answer

Yes, especially over longer savings periods. At 4.5% on a growing balance, you can earn thousands in interest, shaving months off your timeline.

Question 3

What is the best savings account rate in Australia?

Accepted Answer

High-interest savings accounts in Australia currently offer around 4–5.5% p.a. for balances meeting bonus conditions. Compare rates regularly, as they change frequently with RBA cash rate decisions.

Question 4

Should I invest my deposit savings or keep them in cash?

Accepted Answer

For short-term goals (under 3 years), a high-interest savings account or term deposit is generally safest. For longer timeframes (5+ years), a diversified investment may grow faster but carries more risk.

Question 5

How can I save for a deposit faster?

Accepted Answer

Increase your monthly savings by reducing expenses or increasing income. Consider the First Home Super Saver Scheme (FHSSS) which lets you salary-sacrifice up to $15,000/year into super for your deposit with tax advantages. Also look at first home buyer grants and stamp duty concessions.

Deposit Savings Calculator (2026)

Inputs

Frequently asked questions

How much deposit do I need to buy a house in Australia?

Does interest on my savings really make a big difference?

What is the best savings account rate in Australia?

Should I invest my deposit savings or keep them in cash?

How can I save for a deposit faster?

Keep exploring

Calculators

Simple Interest Calculator

Income Tax Calculator

Compound Interest Calculator

Guides

How Much Is LMI in Australia in 2026? Deposit Examples by Property Price

Simple Interest Examples Australia 2026: Formula, Loans and Savings Scenarios