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)

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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?

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