How Much Deposit Do First Home Buyers Actually Need in 2026?

First home buyers in Australia don't need 20% deposit — government schemes allow purchases with 5%, and LMI covers the gap for 5–19% deposits at an additional cost.

Do first home buyers need a 20% deposit?

No. First home buyers can access the First Home Guarantee with just a 5% deposit and no LMI. Without a scheme, 20% avoids LMI. With LMI, you can borrow with 5–10% deposit but pay an insurance premium.