How long until your deposit is ready?

Lenders generally want a 20% deposit to lend without Lender's Mortgage Insurance (LMI). On an $800,000 property that's $160,000 — plus stamp duty (roughly $22,000–$44,000 depending on your state) and about $1,500 in conveyancing. You can buy with as little as a 5% deposit, but you'll pay LMI unless you qualify for a government guarantee scheme such as the First Home Guarantee.

At the national average savings rate, a 20% deposit on a median capital-city home takes roughly 8–12 years for a single income and 4–6 years for a couple. The three levers that shorten it are: saving more per month, earning interest on your savings (a 5% high-interest account meaningfully compounds over multi-year horizons), and targeting a smaller deposit — accepting LMI or using a guarantee scheme.

It depends on how fast property prices are rising relative to your savings. If prices grow 6% per year, an $800,000 target property costs roughly $48,000 more every year you wait — often far more than the $10,000–$30,000 LMI premium on a 10–15% deposit. In flat markets the reverse holds: waiting costs little and avoiding LMI saves real money. Run both scenarios in this calculator and the LMI calculator to compare.

The FHSS lets you make voluntary super contributions (up to $15,000 per year, $50,000 total per person) and later withdraw them — plus deemed earnings — for a first home deposit. Because contributions are taxed at 15% instead of your marginal rate, someone on a 32% marginal rate effectively boosts each dollar saved by around 17 cents. Withdrawals need ATO approval and take a few weeks, so plan ahead of your purchase.

For a deposit you plan to use within about 5 years, most advisers suggest cash — a high-interest savings account or term deposit. Shares average higher returns but can fall 20–40% in a downturn, which could push your purchase back years. Interest on savings is taxable at your marginal rate, so the after-tax return on a 5% account may be closer to 3.4% for a middle-income earner.

Often not, or at a reduced rate. NSW exempts first home buyers up to $800,000 with a concession to $1,000,000; VIC exempts up to $600,000 with a concession to $750,000; QLD exempts up to $500,000; WA up to $430,000. SA, TAS, ACT and NT have their own arrangements. Tick the first-home-buyer box in the calculator to apply your state's concession to the total.

Stamp duty is the big one — from zero (eligible first home buyers) to $40,000+ on a typical purchase. Then conveyancing and legal fees ($1,000–$2,500), building and pest inspections ($500–$700), loan application fees, and LMI if your deposit is under 20%. This calculator includes stamp duty and a $1,500 conveyancing allowance in the total; budget separately for inspections.

No — the target is based on today's price for the property you enter. Prices may rise (or fall) while you save, so revisit the calculator periodically and consider adding a buffer to your target. This moving-target effect is the strongest argument for buying sooner with a smaller deposit in fast-growing markets.