Mozo guides

What is the average home loan deposit in Australia?

A clear piggy bank with a small, cottage-style home inside it, representing the concept of a home deposit

As Australian home prices continue to rise, the amount we need to save to get a home loan increases too. But what is the average home deposit in Australia in 2024?

According to the Australian Bureau of Statistics (ABS), the average Australian home price in the March Quarter of 2024 was $959,300. Assuming you need a 20% deposit, Australia's average home loan deposit is $191,860

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 has the highest average home loan deposit amount, now at $242,400, just to get your foot in the door. This equates to about 246% of the average NSW resident’s yearly income, using average weekly earnings data from the ABS. 

Average dwelling value
20% home loan deposit
Average annual income
% Average annual income

How long does it take to save for a home deposit in Australia?

The time it takes to save up for a deposit depends on your personal income, your household, income, and how much you’re able to save. 


Saving up a 20% deposit on the average-priced home of $959,300, the average full-time worker, earning approximately $98,218 per year would take almost ten years to save up a 20% deposit of $191,860, assuming they managed to save 20% of their annual income, or $19,644, each year.

Of course, that’s for a single, full-time Australian worker, and doesn’t represent, for instance, a heterosexual couple, each earning the average annual income for males and females. 


For full-time couples, the average male earns approximately $103,106 per year, and the average female earns about $90,730, making for a combined household income of $193,836. 

Assuming they save 20% of their combined income each year, $38,767, it would take them just under five years to save up a 20% deposit of $191,860. 

How long does it take first home buyers to save for a home deposit?

If you’re looking to get your first home loan, you might be panicking at some of these huge deposit amounts. However, there are several government grants and schemes available that help to reduce the amount you need for a down payment on your first home. 

The First Home Guarantee (FHBG), Regional First Home Buyer Guarantee (RFHBG), Family Home Guarantee (FHG), and the Help to Buy scheme let eligible first-time buyers use a home deposit amount of 2% or 5%, without having to pay for Lenders Mortgage Insurance (LMI).

It takes Australian singles and couples significantly less time to save a deposit of 5% when they use a first home buyer scheme. 

Single first home buyers

To save up for a 5% deposit of $47,965 on the average-price Australian home ($959,300), it would take the average single, earning $98,218, two and a half years, assuming they save 20% of their annual income ($19,644). 

Couple first home buyers 

For a couple with a combined household income of $193,836, saving up a 5% deposit of $47,965 on the average Australian home ($959,300), it would take them just over a year, assuming they save 20% of their income ($38,767).

Why is the standard home loan deposit 20%?

The purpose of a 20% home loan deposit is to establish your loan-to-value ratio (LVR) and give you a financial stake in your home. The deposit pays part of the upfront property price. 

If you have a 20% deposit, you own 20% of your home. A home loan covers the remainder, giving you 80% LVR. 

This LVR tier is where borrowers get the most competitive interest rates. An LVR higher than 80% is financially risky in the lender’s eyes since the borrower could struggle to afford their home loan repayments. 

To offset the financial risk, lenders slap buyers with smaller deposits with additional fees, such as higher interest rates and LMI, which can add thousands of dollars to mortgage repayments. 

Lower LVRs, on the other hand, receive lower interest rates because the risk to the lender is smaller. They also don’t have to pay LMI. 

You can see this play out in the latest averages for owner-occupied home loans tracked in the Mozo database. The difference below 80% is less severe. Above 80%? The interest rate skyrockets.

Average home loan interest rate by LVR tier – (10 July 2024)

LVR Tier
Average interest rate†
6.72% p.a.
6.76% p.a.
6.80% p.a.
7.07% p.a.
7.35% p.a.

†Average interest rates based on LVR tiers for owner-occupiers with a $400,000 variable home loan, paying principal and interest over 25 years. 

Borrowers buying with a small deposit (<20%) could just decide to pay the higher interest rates. However, their home loan applications will be run through serviceability tests, meaning lenders will see if they can afford principal & interest repayments at a rate up to 3% higher than the one they apply for. A 7% interest rate may be fine, but could you theoretically afford a 10% one? 

Given that saving for the deposit can be a stretch, this interest rate may be a tall order – especially with an average Australian income of around $98,218.

Can you afford a $600,000 or $750,000 home? How about $900,000? Crunch the numbers with Mozo’s home loan calculators.

Jack Dona
Jack Dona
Money writer

Jack is RG146 Generic Knowledge certified, with a Bachelor of Communications in Creative Writing from UTS, and uses his creative flair to cut through the financial jargon and make home loans, insurance and banking interesting. His reader-first approach to creating content and his passion for financial literacy means he always looks for innovative ways to explain personal finance. Jack's research and explanations have been featured in government publications, and his work is regularly featured alongside major publications in Google's Top Stories for Insurance.