What is the average house deposit in Australia?
As Australian house prices continue to rise, the amount we need to save to get a home loan increases too. So what is the average home deposit in Australia in 2025?
According to the Australian Bureau of Statistics (ABS), the average house price was $1,016,700 in the June quarter of 2025 . Assuming you need a 20% deposit, Australia’s average home loan deposit is $203,340.
But depending on where you plan to buy, you might have to save a lot more than that to afford a home.
Average home loan deposit by state or territory
As you might have guessed, New South Wales is the state with the highest average home loan deposit, now at $251,240 as of the June quarter.
This is just over three times higher than the average annual income after tax in NSW, which is just shy of $82,000 a year according to data from the ABS .
That gives you an idea of how long it can take the average person to save up a deposit, and just how challenging the dream of homeownership can be in today’s climate.
Average home loan deposit by state
| State or territory | Average dwelling value (Jun 25) | 20% home loan deposit | Average annual income after tax | Ratio of deposit to annual income | ||||
|---|---|---|---|---|---|---|---|---|
| NSW | $1,256,200 | $251,240 | $81,771 | 3.1 | ||||
| VIC | $909,100 | $181,820 | $78,504 | 2.3 | ||||
| QLD | $977,300 | $195,460 | $78,295 | 2.5 | ||||
| SA | $854,400 | $170,880 | $76,188 | 2.2 | ||||
| WA | $897,500 | $179,500 | $85,402 | 2.1 | ||||
| TAS | $670,900 | $134,180 | $72,613 | 1.8 | ||||
| NT | $523,400 | $104,680 | $77,351 | 1.4 | ||||
| ACT | $949,400 | $189,880 | $88,143 | 2.2 | ||||
| Australia | $1,016,700 | $203,340 | $80,286 | 2.5 | ||||
| Source: ABS dwelling value and weekly earnings data sets. Average deposit estimates assume a 20% deposit. Ratio figures use the average deposit at 20% of home value and the average income after tax. | ||||||||
How long does it take to save for a home deposit in Australia?
There’s many factors that influence how long it takes you to save for a home deposit, but the main contributors are your personal income (or your combined income if buying with others), and how much you’re able to save.
You’ll generally need to save up a 20% deposit, but it’s also possible to get a home loan with a deposit of just 5-10%. If we take the average house price in Australia – $1,016,700 in the June quarter of 2025 – here’s how much you’ll need.
- 20% deposit – $203,340
- 10% deposit – $101,670
- 5% deposit – $50,835
Singles
- Time to save a 20% deposit – over 12 years
The average income in Australia is $104,520 per year according to the ABS, but this figure is pre-tax. If we consider this income after tax ($80,286), it could take up to 12 years for a single person to save for a 20% deposit of $203,340.
This assumes a person could save 20% of their annual income, or about $16,000 a year, to reach this goal. Keep in mind that our calculations don’t factor in your ability to service your home loan and continue paying it off comfortably over time.
Couples
- Time to save a 20% deposit – over 6 years
If we double the average income in Australia after tax, a couple would have a combined income of $160,572. If 20% of this can be put away each year, it would take just over six years to save a deposit of $203,340.
How long does it take first home buyers to save for a home deposit?
Thanks to the Australian government’s 5% deposit scheme, first home buyers don’t always have to save up a full 20% deposit.
It allows eligible first-time buyers to purchase a property with a deposit of just 5% without needing to pay for lenders mortgage insurance (LMI) which can add thousands to your loan.
There are other government initiatives such as the First Home Super Saver Scheme and the upcoming Help to Buy scheme that also offer other pathways to home ownership for eligible first-time buyers.
Single first home buyers
- Time to save a 5% deposit – about 3 years
If a single person with the average income is able to access the first home buyers scheme, it would take about three years to save up for a 5% deposit for the average house price in Australia.
To reach this in three years, a person on the average income would need to put aside 20% every year (just over $16,000) to save a 5% deposit of $50,835.
Couple first home buyers
- Time to save a 5% deposit – about a year and a half
For a couple with a combined household income of $160,572, it would take about a year and a half to save up a 5% deposit of $50,835. A couple on the average income would need to set aside about 20% of their earnings per year to save for the deposit.
Why is the standard home loan deposit 20%?
Lenders generally want you to have a home loan deposit of 20% because it reduces their level of risk when lending you money. It means you own 20% of your home outright, and it gives you a loan-to-value ratio (LVR) of 80%.
Your LVR can influence your interest rate and the rule of thumb is the higher your LVR, the higher your rate. That’s because an LVR above 80% is more financially risky for a lender, especially if a situation arises where you are no longer able to afford your home loan repayments.
To offset the risk, lenders slap buyers who have smaller deposits with lenders mortgage insurance, which can add thousands of dollars to mortgage repayments over time.
How LVR affects interest rates
Lower LVRs, on the other hand, tend to receive lower interest rates because the risk to the lender is smaller. Borrowers with a deposit of at least 80% also don’t have to pay LMI.
You can see this play out in a real-world example below. The table shows the average variable interest rate for each LVR tier in the Mozo database (on 17 November, 2025). The difference below 80% is less severe. Above 80%? The interest rate jumps significantly.
| LVR | Average variable rate (p.a.) | Monthly repayments |
|---|---|---|
| 60% | 5.78% | $3,155 |
| 70% | 5.84% | $3,173 |
| 80% | 5.87% | $3,182 |
| 90% | 6.15% | $3,268 |
| Source: Mozo database on 17 November, 2025. Average variable rates for owner occupiers, making principal and interest repayments on a $500,000 loan over 25 years. | ||
Before applying for a home loan, use Mozo’s home loan calculators to run the numbers and see how much you can afford to borrow, and what your repayments might be.
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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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