What a 20% home deposit looks like in your dream suburb
Whether you prefer the convenience of living close to work or you’re one of the growing number of Australians looking for a ‘sea change’, it’s no secret location sits high on the priority list for many home buyers.
But it goes without saying that properties aren’t worth the same from suburb to suburb. Median house prices could go from as high as $1,154,406 in Sydney to a much lower $145,500 in Broken Hill, according to the latest figures from the Domain House Price Report.
By default, that also means saving a 20% house deposit could either take many years of hard work or be a considerably easier task, depending on the location.
For instance, 20% of Sydney’s median house price would currently be $230,881. Whereas for a house in Broken Hill, you could aim to raise just $29,100 - about eight times less - before your 20% deposit is complete.
To help you decide how much you’ll need for a deposit for your ideal suburb, our data experts have pulled together an interactive map of median house prices across Australia.
From Townsville in Queensland to Broome in Western Australia, hover over the various markers to view what a 20% deposit would look like in each location.
Why a 20% deposit?
Simply put, that’s the standard. Many lenders expect borrowers to have at least a 20% deposit of the property purchase price or a 80% loan-to-value ratio (LVR), so this is where you’ll find the biggest basket of low interest home loans.
Not to mention that with a 20% deposit, you can avoid getting stung by higher rates as well as an extra charge known as Lenders Mortgage Insurance, which customers with smaller deposits usually have to budget for (although there are ways to minimise those costs).
Quick tips to save a deposit
Saving for a 20% deposit can be tough, so to help you out we’ve compiled a few tips to help you stash away the money you need for your first or next property purchase:
- Cut back on expenses: Whether it’s a gym membership you rarely use or the countless streaming services you’ve signed up to this year, trimming back on your more indulgent expenses can go a long way to helping you save. For instance, instead of paying $18 a week to access your local gym facilities (which adds up to $936 over one year!), you could consider downloading a fitness app instead. For even bigger savings, look at switching to a cheaper car insurance policy or energy plan.
- Whip up a budget - and stick to it: Once you’ve gotten a handle on how to adjust your current spending habits, the next step is writing up a budget. Set a goal and timeframe for your savings - say, $2,000 a month - and make sure it’s realistic. A good rule to follow is ‘50/20/30’: 50% of your monthly income goes towards essentials (like rent and groceries), 30% towards fun (like entertainment and eating out) and 20% towards your savings (aka your home deposit).
- Get your debt under control: Having lingering debt can be a double whammy for home buyers, as not only does it make saving up harder but it could also affect your chances of getting approved for a home loan. To pay off your credit card debt, consider devising a repayment plan (so you don’t miss any deadlines) or even swapping out your current plastic for balance transfer credit card which charges 0% interest for an introductory period (usually 6-17 months).
- Park your money in the right savings account: While interest rates for depositors are far less than favourable right now, shopping around can still make a difference. After all, the gap between the highest and lowest maximum savings rate in the Mozo database (excluding Westpac Life for 18-29 year olds only) is still a whopping 115 basis points. Plus, a number of savings accounts also offer nifty tools to help you save, including roundups and the ability to open multiple ‘savings buckets’.
Once you’ve ticked ‘house deposit’ off your to-do list, it’s time to shop around for the best home loan for you. Scroll below for a list of competitive deals, or jump over to our home loans comparison table for even more options from over 80 different lenders.
Compare home loans - last updated January 23, 2021
Smart Booster Home Loan
1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
interest rate
comparison rate
Initial monthly repayment
1.99% p.a.variable for 12 months and then 2.48% p.a. variable2.47% p.a.CompareCompareSmart Booster Home Loan
A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.
- interest rate
- 1.99% p.a.variable for 12 months and then 2.48% p.a. variable
- comparison rate
- 2.47% p.a.
- Upfront fees
- $520
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - with 0.10% additional interest
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $50,000
- maximum borrowing amount
- $1,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Smart Booster Home Loan
UHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
2.34% p.a. variable2.34% p.a.CompareCompareUHomeLoan - Discount Offer
Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.
- interest rate
- 2.34% p.a. variable
- comparison rate
- 2.34% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- -
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the UHomeLoan - Discount Offer
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
2.19% p.a. variable2.19% p.a.CompareCompareCelebrate Variable Home Loan
Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^
- interest rate
- 2.19% p.a. variable
- comparison rate
- 2.19% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Celebrate Variable Home Loan
Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR 70-80%
interest rate
comparison rate
Initial monthly repayment
2.09% p.a.
fixed 2 years2.56% p.a.CompareCompareBasic Home Loan
Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.
- interest rate
- 2.09% p.a.
fixed 2 years
- comparison rate
- 2.56% p.a.
- Upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $750,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Basic Home Loan
Fixed Home Loan Special Offer
Owner Occupier, Principal & Interest, <80% LVR
interest rate
comparison rate
Initial monthly repayment
1.89% p.a.
fixed 2 years2.94% p.a.CompareCompareFixed Home Loan Special Offer
Competitive low rates starting from 1.89% (2.94% comparison rate) 2 years fixed for owner occupiers. No monthly account keeping fees & No loan establishment fee.
- interest rate
- 1.89% p.a.
fixed 2 years
- comparison rate
- 2.94% p.a.
- Upfront fees
- $0
- Ongoing fees
- $375.00 yearly
- Discharge Fee
- $350.00
- Extra repayments
- yes - free up to $500 per month
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- -
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Fixed Home Loan Special Offer
^See information about the Mozo Experts Choice Home Loans Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.