2% deposit — Family Home Guarantee: Available to eligible single parents or legal guardians with at least one dependent child. The government guarantees 18% of the loan value, eliminating LMI. 5,000 places per financial year. No income caps. Source: Housing Australia.
5% deposit — First Home Guarantee: Available to eligible first home buyers. The government guarantees 15% of the loan value, eliminating LMI. No income caps, no limit on places (from 1 October 2025). SA price cap $900,000 for Adelaide and regional centres. Source: Housing Australia.
20% deposit — no LMI: With a 20% deposit, no LMI is required regardless of which lender you use or whether you are a first home buyer. This is the standard threshold across all lenders.
Most lenders require your deposit to include genuine savings — funds held in your account for at least 3 months. Gifted funds from family may be accepted but typically require a statutory declaration confirming the gift is not a loan. Some lenders are more flexible than others on what constitutes genuine savings.
In addition to your deposit, you need funds to cover purchasing costs — conveyancing fees, building and pest inspections, and potentially stamp duty (though stamp duty is zero for eligible first home buyers purchasing new homes in SA with no price cap). Allow approximately $2,000 to $5,000 for these costs depending on the purchase price.
For investment properties, most lenders require a minimum 10% deposit, with 20% required to avoid LMI. Some lenders allow investors to use equity from an existing property as a deposit — Lendology assesses the most appropriate structure for your situation.
Jason and Steve are Adelaide mortgage brokers who give honest, free advice. No obligation.
The information on this page is general in nature and does not constitute financial advice. Given Finance Pty Ltd (t/a Lendology) ACN 624 144 501 is authorised under LMG Broker Services Pty Ltd ACL 517192.