On a A$700k first home with the LMI-waiver pathway, A$70k (10%) is the practical minimum. On a standard A$900k middle-ring purchase, banks typically require A$180k (20%) to avoid LMI. Add A$3k–A$5k for conveyancer + building inspection. Stamp duty stacks on top unless you qualify for first-home exemption.
Two thresholds matter: the lender's deposit minimum (5–20% depending on product) and the LMI threshold (typically 20% to avoid Lender's Mortgage Insurance). Below the LMI threshold, you either pay the insurance premium (A$8k–A$25k on a typical Melbourne purchase) or qualify for a government scheme.
Standard owner-occupier purchase, A$900k middle-ring (Glen Waverley, Bentleigh, Box Hill): banks generally want 20% (A$180k) plus stamp duty (~A$50k) plus settlement costs (A$3k–A$5k). Total cash at settlement: ~A$235k.
Family-tier A$1.4M school-zone purchase (Box Hill High catchment, McKinnon zone, Glen Waverley Secondary catchment): 20% deposit (A$280k) + stamp duty (~A$77k) + settlement costs (A$5k–A$8k). Total cash at settlement: ~A$365k–A$370k. Borrowing the remaining A$1.12M typically requires household income around A$240k–A$270k after living-expense deductions. School-zone premium of 8–18% over equivalent out-of-zone houses is the part you're paying for; budget accordingly.
Premium-tier A$2.5M Balwyn / Canterbury purchase: 20% deposit (A$500k) + stamp duty (~A$137k) + settlement costs (A$8k–A$12k). Total cash at settlement: ~A$650k. Borrowing capacity at this tier typically requires A$400k+ household income or substantial existing-equity contribution; specialist mortgage brokers are usually involved.
First-home buyer pathway, A$700k purchase: First Home Guarantee scheme allows 5% deposit (A$35k) with no LMI, capped to 35,000 places per year nationally. State First Home Owner Grant adds A$10,000 if the home is new under A$750k. Stamp duty: zero under A$600k, sliding concession A$600k–A$750k. On a A$700k new home with FHOG + concession + Guarantee: total cash at settlement could be as low as ~A$45k–A$60k including settlement costs.
Off-the-plan and apartment purchases: lenders sometimes require higher deposits (15–20%) on off-the-plan apartment purchases because of valuation risk at settlement — the property's appraised value at settlement may be lower than the contract price.
Investment property: 20% deposit is effectively required (some lenders go to 10% with LMI, but rates and serviceability are tighter for investment lending). On a A$650k Tarneit investment property: A$130k deposit + A$30k stamp duty + ~A$5k settlement = ~A$165k cash at settlement.
Borrowing capacity check: at 2025 mortgage rates (variable hovering 5.8–6.5%), a household income around A$170k–A$190k typically supports a A$700k–A$750k owner-occupier loan after living-expense deductions. Run an actual broker pre-approval before committing to a suburb tier — the borrowing capacity matters more than the deposit math.
What we don't claim: that current schemes will exist next year. The First Home Guarantee, FHOG, and stamp-duty thresholds have all shifted multiple times in the last five years. Always check current numbers with a broker or the SRO before relying on a 12-month-old article.
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Pop grew ~15%/yr last 3 yrs; under-35 family demographic anchor
Far west; 4BR new builds still under $700k currently
New housing stock + Wyndham Vale station on Geelong line; CBD 45 min
Box Hill Central + hospital + TAFE anchor daytime buzz year-round
Glen Waverley Secondary zone drives a 15–20% premium vs neighbours
Balwyn High zone: houses inside boundary trade at 15–25% premium to outside
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