By Steve Chin - June 2026 - 6 min read
The 20% deposit benchmark is the point at which you avoid paying Lenders Mortgage Insurance (LMI). But it is not a requirement to buy. In fact, most first home buyers in Australia purchase with less than 20% - and there are several ways to do it.
Adelaide's median house price has been rising by roughly 8-12% per year recently. On a $600,000 property, that is $48,000-$72,000 per year in price growth. If it takes you two more years to save from 5% to 20%, the property may have increased by more than the LMI you would have paid.
This is not a reason to rush into something you cannot afford. But it is a reason to run the numbers properly rather than assuming you need 20% before you can act.
Lendology checks every guarantee scheme, LMI waiver, and guarantor option across our full panel. Book a free chat and we will find the cheapest path to ownership for your specific deposit and income.
In limited circumstances, yes. If you have a family member willing to act as guarantor, some lenders will approve a loan with zero deposit from you - the guarantor's property provides the security the lender needs. Without a guarantor, a minimum of 2-5% is typically required depending on the scheme you use.
Lenders Mortgage Insurance protects the lender if you default on a loan where you have less than 20% deposit. It is a one-off premium added to your loan, ranging from a few thousand dollars on a small loan to $15,000-$30,000 or more on larger loans. The exact cost depends on the loan amount, LVR, and lender. Government guarantee schemes let you avoid LMI entirely with as little as 5% deposit.
Not necessarily. In a rising market, the amount you save on LMI by waiting may be less than the price increase on the property. Buying now with 5% and paying LMI can still be cheaper than buying later at a higher price with 20% deposit. Lendology can model both scenarios using actual Adelaide market data.