Average house deposit and LVR in Australia
Your deposit sets your Loan to Value Ratio, which shapes both your interest rate and whether you pay Lenders Mortgage Insurance. Here is what Australians actually put down, and how far a smaller deposit can stretch.
Live from the home loans we compare
Updated 19 Oct 2026The headline numbers
The long-standing benchmark is a 20% deposit, which puts your Loan to Value Ratio at 80%. On the $1.10 million mean Australian dwelling price that is around $220,080. Get to 80% LVR and you generally unlock lower rates and avoid Lenders Mortgage Insurance.
In practice most buyers no longer wait that long. APRA counts close to 30% of all new home lending as funded at or above an 80% LVR, so going in with less than a full 20% deposit is ordinary rather than exceptional, and a government scheme can bring it lower again. The Australian Government 5% Deposit Scheme lets eligible first home buyers purchase with as little as 5% without paying LMI, and since 1 October 2025 it has no cap on places and no income limits.
A smaller deposit is not out of reach, but it changes the maths. Above 80% LVR most lenders charge LMI, and rates can be a little higher. The live tile above shows how many of the lenders we compare will lend to buyers with a deposit under 20%.
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Terms on this page
- Loan to Value Ratio (LVR)
- The size of your loan as a percentage of the property value. Borrow $640,000 against an $800,000 home and your LVR is 80%. A lower LVR usually means a lower interest rate and no Lenders Mortgage Insurance.
- Lenders Mortgage Insurance (LMI)
- A one-off insurance premium most lenders charge when your deposit is under 20% (an LVR above 80%). It protects the lender, not you, and can be added to the loan. Government guarantee schemes can waive it for eligible buyers.
- Pre-approval
- A lender’s conditional indication of how much it may lend you before you have found a property. It helps you shop with confidence but is not a guarantee of final approval.
- Guarantor
- Usually a parent who uses equity in their own property as extra security for your loan. It can help you borrow with a smaller deposit and avoid LMI, but the guarantor takes on real risk.
- Stamp duty
- A state or territory tax on property purchases, calculated on the price and payable at settlement. First home buyers often qualify for a concession or exemption.
Frequently asked questions
How much deposit do I need to buy a house in Australia?
A 20% deposit (an 80% LVR) is the benchmark that avoids Lenders Mortgage Insurance and usually gets you a lower rate, around $220,080 on the $1.10 million mean Australian dwelling price. Many buyers purchase with 5% to 10%, using LMI or a government scheme such as the Australian Government 5% Deposit Scheme.
What is LVR and why does it matter?
Loan to Value Ratio is your loan as a percentage of the property value. A lower LVR is less risk to the lender, so it typically means a lower interest rate and, at or below 80%, usually no Lenders Mortgage Insurance.
Can I buy with less than a 20% deposit?
Yes, and it is common: APRA counts close to 30% of new home lending as funded at or above an 80% LVR. You will usually pay Lenders Mortgage Insurance above that level unless you qualify for a guarantee scheme or use a guarantor. The live tile on this page shows how many lenders we compare accept a deposit under 20%.
The Same Market, Measured Daily
The figures above are the headline ones, published when their source publishes them. These are the daily readings, taken across every product in the feed.
- Market averages Home Loan Market Averages Today's average home loan rate, by segment, and how it has moved since the last reading. Taken from every product in the feed, not a survey.
- Statistics Average Home Loan Interest Rate in Australia The average home loan interest rate moves with the Reserve Bank cash rate and with competition between lenders. The figures below combine live rates from the loans we compare with the official RBA benchmarks.
- Statistics Average Home Loan Size in Australia The average new home loan has climbed sharply as property prices have risen. Here is the latest figure from the Australian Bureau of Statistics, how it varies by state, and what a loan that size costs to repay at today’s lowest variable rate.
- Rate Tracker Every Market, One Page The daily average across home loans, savings, term deposits, credit cards and personal and car loans, measured against the RBA cash rate.
This page is general information only and does not take your personal circumstances into account. It is not credit or financial product advice and CompareThat is not a credit provider or bank. Live figures are drawn from the products we compare; authored figures cite their source and date.