5%, 10% or 20% Deposit: What It Changes on a $700,000 Home
Loan size, monthly repayments and total interest with a 5%, 10% and 20% deposit, plus the main ways to avoid lenders mortgage insurance.
By the MoneyBackKit AU team · Updated 28 October 2026 · 2 min read
The usual advice is to save a 20% deposit. A smaller deposit gets you in sooner, but you borrow more, pay more interest and, with most lenders, pay lenders mortgage insurance (LMI) too.
A $700,000 home with 5%, 10% or 20% down
| Deposit | Loan | Monthly repayment | Total interest |
|---|---|---|---|
| 5% ($35,000) | $665,000 | $3,987 | $770,324 |
| 10% ($70,000) | $630,000 | $3,777 | $729,781 |
| 20% ($140,000) | $560,000 | $3,357 | $648,694 |
Going from a 20% to a 5% deposit adds about $630 a month and $121,630 in interest over the loan.
Ways around LMI
- The Australian Government 5% Deposit Scheme lets eligible first home buyers buy with a 5% deposit, and eligible single parents or legal guardians with 2%, without paying LMI. Since 1 October 2025 there are no income caps; property price caps still apply.
- Some lenders waive LMI for certain professions.
- A family guarantee uses a relative's property as extra security.