The deposit is the first major hurdle for most home buyers — but the minimum amount you actually need is often lower than people expect, especially in South Australia where government schemes can significantly reduce the barrier.
Most lenders require a 20% deposit to avoid Lenders Mortgage Insurance. On the current Adelaide median house price, this is a substantial amount. The 20% threshold exists because lenders see loans above 80% of the property value as higher risk — and LMI is the premium they charge to cover that risk.
However, waiting to save a 20% deposit is not always the right strategy. In a market where property prices are rising, the additional time spent saving can be more costly than the LMI premium itself. Lendology models both scenarios — buying now with a smaller deposit and LMI versus waiting to reach 20% — so you can make an informed decision.
The federal government's First Home Guarantee allows eligible first home buyers to purchase with as little as 5% deposit without paying LMI. The government guarantees up to 15% of the property value, reducing the lender's risk without the buyer needing to pay the insurance premium.
In South Australia, the property price cap for the scheme is $900,000. Income caps also apply — $125,000 for singles and $200,000 for couples. Lendology checks eligibility and manages the application as part of the home loan process.
Some lenders offer loans at 90% LVR (10% deposit) with LMI. The LMI premium at 90% is significantly lower than at 95%, which can make this a reasonable middle ground — particularly if you can save the additional 5% but not the full 20%.
For buyers who do not qualify for the First Home Guarantee, a 10% deposit with LMI is often the most practical path into the market.
Most lenders require that your deposit includes genuine savings — funds you have accumulated yourself over a period of at least three months. Gifts from parents, inheritances or proceeds from asset sales may be accepted but need to be documented correctly.
Family guarantee arrangements — where a parent uses equity in their own property to guarantee part of your loan — can also eliminate the need for LMI in some cases. Lendology explains all available structures based on your specific savings position.
Yes. Parental gifts are accepted by most lenders when properly documented. Family guarantee structures — where parents use their home equity as additional security — are also available and can remove the need for LMI entirely.
In South Australia the First Home Owner Grant may be available for new builds. Whether it counts as genuine savings depends on the lender and timing. We clarify this as part of your application preparation.
Beyond the deposit, budget for stamp duty (or check your concession eligibility), conveyancing ($1,000 to $2,500), building and pest inspection ($400 to $700), and moving costs. We give you a complete upfront cost estimate before you start.
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