Home deposit sizes swell: here’s how much deposit you need to buy a home in Australia’s capital cities in 2024

Two hot air balloons carry houses high into the sky above a suburban sprawl

It’s a well-known fact that you usually need a 20% deposit to buy a home in Australia, but rising home values in recent months mean the actual value of your deposit is only getting steeper. 

The latest Hedonic Home Value Index (HVI) from CoreLogic reports the strongest monthly gain since October 2023, recording a 0.6% rise.

The HVI also reports that combined capital city dwelling values have shot up 13.9% since last year, with the median home across Australia’s capital cities now costing $842,109.

This means that half of the homes in Australia’s capital cities either cost less, or more than $842,109. 

So, let’s get into deposit amounts where you live.

Sydney

$225,631

The median home in Sydney costs $1,128,155, according to CoreLogic. A 20% deposit to buy the median value home in Sydney would equal $225,631.

Melbourne

$155,788

The median home in Melbourne costs $778,941, according to CoreLogic. A 20% deposit to buy the median value home in Melbourne would equal $155,788.

Brisbane

$161,119

The median home in Brisbane costs $805,593, according to CoreLogic. A 20% deposit to buy the median value home in Brisbane would equal $161,119.

Adelaide

$145,428

The median home in Adelaide costs $727,142, according to CoreLogic. A 20% deposit to buy the median value home in Adelaide would equal $145,428.

Perth

$137,401

The median home in Perth costs $687,004, according to CoreLogic. A 20% deposit to buy the median value home in Perth would equal $137,401.

Hobart

$130,529

The median home in Hobart costs $652,645, according to CoreLogic. A 20% deposit to buy the median value home in Hobart would equal $130,529.

Darwin

$130,529

The median home in Darwin costs $499,834, according to CoreLogic. A 20% deposit to buy the median value home in Darwin would equal $99,967.

Canberra

$168,021

The median home in Canberra costs $840,103, according to CoreLogic. A 20% deposit to buy the median value home in Canberra would equal $168,021.

What’s the average first deposit in 2024?

Taking into account the median home prices in the capital cities, the average deposit for a home in Australia in 2024 might be around $152,986. 

That’ll take most people a while to save up for. However, teaming up with a partner or friends can make such a sizeable deposit more achievable. 

But there are ways around saving up for a 20% deposit. 

For example, a low-deposit home loan that only requires a 5 to 10% deposit can drastically cut down the time it takes you get a foot in the door. 

However, you’ll then need to consider lenders mortgage insurance (LMI), and whether the cost of LMI outweighs what you save with a lower deposit. 

Having a deposit lower than 20% may also mean you pay slightly higher interest rates. So, make sure you have the financial liquidity there to make your mortgage repayments. 

At the end of the day, what could make a world of difference for your wallet is your interest rate. 

So, make sure you compare home loan interest rates to find a mortgage that suits your needs and budget, and look into home loan features like an offset account, which could help you save even more.

Home loan comparisons on Mozo - last updated 27 May 2024

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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