Key Takeaways
- The standard deposit benchmark is 20% of the purchase price, which keeps the loan at 80% and avoids Lenders Mortgage Insurance.
- Eligible accountants can often buy with a 10% deposit, and sometimes 5%, without LMI through the professional waiver.
- The deposit is not the only cash needed: stamp duty, legal fees, inspections, and a buffer should all be budgeted for.
- A smaller deposit lets you buy sooner but means borrowing more, so the right deposit balances entry timing against leverage.
The deposit is the first real hurdle for most buyers, and how much you actually need is one of the most common questions accountants ask before starting a purchase. With variable rates around the 6% mark and prices holding firm, the size of your deposit shapes not just whether you can buy, but how soon and on what terms. The honest answer is that it depends on your circumstances and the lender, but accountants often have more options than the standard benchmark suggests, and the deposit is only part of the cash you will need.
Working out the right deposit for your situation, and whether a professional waiver lets you put down less, is something a mortgage broker for accountants can map out with you. This article explains the standard 20% benchmark, how much less an accountant can often put down, the costs beyond the deposit, how lenders view your savings, and how to decide what deposit is right for you.
The 20% Benchmark and Why It Exists
It helps to start with the standard, because everything else is measured against it. The common benchmark is a deposit of 20% of the purchase price, which keeps your loan at 80% of the property value or below. That figure matters because borrowing more than 80% normally triggers Lenders Mortgage Insurance (LMI), a one-off premium that protects the lender if the loan is not repaid. On a $700,000 property, a 20% deposit is $140,000, which is why reaching the benchmark can take years and why many buyers look for a way to put down less.
How Much Less an Accountant Can Put Down
This is where the profession’s lending advantages come in, because accountants can frequently buy with a smaller deposit than the standard benchmark and still avoid the premium. There are a few paths, depending on your circumstances.
The 10% Professional Path
Many lenders waive LMI for eligible accountants borrowing up to 90% of the property value, meaning a deposit of just 10%. To qualify you generally need a current, practising membership of a recognised professional body and to work in an eligible role, and the waiver must be requested rather than applied automatically. This is the most widely available low-deposit route for accountants.
Going to 5% With Some Lenders
A smaller group of lenders extends the waiver to 95% of the value, meaning a 5% deposit, though on stricter terms such as owner-occupier purchases, a smaller maximum loan, and a consistent employment history. It is achievable for eligible accountants but more conditional than the 10% path, so it is worth confirming rather than assuming.
Other Low-Deposit Options
Beyond the professional waiver, a guarantor, often a family member offering equity in their own property as security, can allow you to borrow with little or no deposit while avoiding LMI. Eligible first home buyers may also use a government low-deposit scheme that permits a purchase with as little as a 5% deposit without the premium, with recent changes having removed the income caps that previously excluded many higher earners.
The Costs Beyond the Deposit
It would be a mistake to budget only for the deposit, because a purchase involves several other upfront costs that catch buyers out. These need to be planned for alongside the deposit itself.
- Stamp duty, which varies by state and by whether you qualify for a first home buyer concession or exemption, and can be a significant sum.
- Legal or conveyancing fees for handling the transfer.
- Building and pest inspections before you commit.
- Lender and valuation fees, where they apply.
- Moving costs and a cash buffer for the period after settlement.
The practical point is that the cash you need is the deposit plus these costs, so stretching to the smallest possible deposit and leaving nothing for the rest can leave you short at settlement.
How Lenders View Your Deposit and Savings
Lenders look not just at the size of your deposit but at where it came from, which is worth understanding before you apply. The source can matter as much as the amount.
Many lenders expect part of the deposit to be genuine savings, meaning funds you have accumulated over time rather than a recent windfall, though gifted funds or equity can sometimes count and some professional-waiver lenders relax this requirement for eligible accountants. Whatever your deposit, the lender still assesses your ability to service the loan at the actual rate plus a buffer of 3 percentage points set by the Australian Prudential Regulation Authority (APRA), which at current rates means being assessed at roughly 9%. A smaller deposit means a larger loan, so your borrowing capacity has to cover the higher repayments.
Working Out the Right Deposit for You
The smallest allowable deposit is not always the best choice, so it is worth thinking about the right deposit rather than just the minimum. The decision is a balance.
A smaller deposit lets you enter the market sooner and keeps more of your savings available, which in a rising market can be valuable. Against that, putting down less means borrowing more, with higher repayments, more interest over time, and a thinner equity buffer if values fall. For some accountants, using the waiver to buy now with 10% is clearly the right move; for others, saving a little longer for a larger deposit gives more comfort. The sensible approach is to weigh how soon you want to buy against how much leverage you are comfortable carrying, rather than defaulting to either extreme.
Frequently Asked Questions (FAQs)
Do accountants need a 20% deposit to buy a home?
Not necessarily. While 20% is the standard benchmark that avoids LMI, eligible accountants can often buy with a 10% deposit, and sometimes 5%, without the premium through the professional waiver. The right deposit depends on your circumstances, the lender, and how much you are comfortable borrowing.
What is the smallest deposit an accountant can use?
Through the professional waiver, some lenders allow eligible accountants to buy with as little as a 5% deposit without LMI, though on stricter terms than the more common 10% path. A guarantor arrangement can sometimes allow even less, while a government scheme may permit a 5% deposit for eligible first home buyers.
Does a bigger deposit get me a better outcome?
Often, yes. A larger deposit means a smaller loan, lower repayments, less interest over time, and a thicker equity buffer. It is not always necessary given the waiver, but if you can comfortably save more without missing your timing, a larger deposit reduces both cost and risk.
What costs do I need beyond the deposit?
Stamp duty (subject to any first home buyer concession), legal or conveyancing fees, building and pest inspections, any lender and valuation fees, and moving costs. It is sensible to keep a cash buffer for after settlement too, so the total cash you need is the deposit plus these items rather than the deposit alone.
Do lenders require genuine savings for the deposit?
Many do, meaning they want to see part of the deposit accumulated over time rather than received suddenly, though gifted funds or equity can sometimes count. Some lenders relax this requirement for eligible professionals, so whether genuine savings are needed depends on the lender and your situation.
Is it better to buy now with a small deposit or wait and save more?
It depends on your circumstances. Buying sooner with the waiver can be worthwhile in a rising market and keeps savings available, but it means borrowing more and carrying higher leverage. Waiting to save a larger deposit lowers cost and risk. Weighing your timing against your comfort with borrowing is the key.
The Bottom Line
The standard deposit is 20% of the purchase price, which keeps the loan at 80% and avoids LMI, but eligible accountants can often buy with much less, commonly 10% and sometimes 5%, through the professional waiver, with a guarantor or a government scheme as further low-deposit options. Whatever deposit you use, remember that stamp duty, legal fees, inspections, and a buffer all need budgeting alongside it, and that the lender still assesses you at the actual rate plus 3 percentage points. The right deposit is the one that balances buying when you want to against the leverage you are comfortable carrying, so it is worth planning the full picture rather than aiming only for the minimum.