[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/truthgroup.com.au\/2025\/07\/02\/30954\/#BlogPosting","mainEntityOfPage":"https:\/\/truthgroup.com.au\/2025\/07\/02\/30954\/","headline":"How Much Deposit Do You Really Need to Buy Property in 2025?","name":"How Much Deposit Do You Really Need to Buy Property in 2025?","description":"02\/07\/2025 by Nicholas Parpis Forget the old \u201c20% deposit\u201d rule In today\u2019s Sydney market, interest rates and stricter lending rules, it\u2019s not just about how much deposit you have. Here\u2019s the reality: 20%+ Deposit Still the gold standard \u2014 it means you avoid Lenders Mortgage Insurance (LMI) and your loan repayments are more manageable. But given higher interest ... Read more<\/a>","datePublished":"2025-07-02","dateModified":"2025-10-12","author":{"@type":"Person","@id":"https:\/\/truthgroup.com.au\/author\/nicholasparpistruthpropertycomau\/#Person","name":"Nicholas Parpis","url":"https:\/\/truthgroup.com.au\/author\/nicholasparpistruthpropertycomau\/","identifier":216551164,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/f6058d552df68dbaf53120d13f9e89fc9834e3e1ba22039065b40df84bd9df29?s=96&d=identicon&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/f6058d552df68dbaf53120d13f9e89fc9834e3e1ba22039065b40df84bd9df29?s=96&d=identicon&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Truth Group Pty Ltd.","logo":{"@type":"ImageObject","@id":"https:\/\/truthgroup.com.au\/wp-content\/uploads\/2025\/10\/hero-logo-1-e1762756174980.png","url":"https:\/\/truthgroup.com.au\/wp-content\/uploads\/2025\/10\/hero-logo-1-e1762756174980.png","width":600,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/truthgroup.com.au\/wp-content\/uploads\/2025\/07\/create-a-highly-detailed-high-resolution-image-that-captures-the-essence.png","url":"https:\/\/truthgroup.com.au\/wp-content\/uploads\/2025\/07\/create-a-highly-detailed-high-resolution-image-that-captures-the-essence.png","height":768,"width":1024},"url":"https:\/\/truthgroup.com.au\/2025\/07\/02\/30954\/","about":["Latest Post"],"wordCount":520,"articleBody":"02\/07\/2025 by Nicholas Parpis\t\t\t\t\t \t\t\t\t\t\t\t\t\t\tForget the old \u201c20% deposit\u201d ruleIn today\u2019s Sydney market, interest rates and stricter lending rules, it\u2019s not just about how much deposit you have.Here\u2019s the reality:20%+ DepositStill the gold standard \u2014 it means you avoid Lenders Mortgage Insurance (LMI) and your loan repayments are more manageable. But given higher interest rates and stress testing at around 7%, you\u2019ll need a strong income to service the loan comfortably.For example,A $700,000 property with a 20% deposit means a $560,000 loan.Monthly repayments tested at 7% are roughly $3,750 \u2014 which usually requires a combined household income of $130,000+, depending on your expenses and debts.10% DepositPossible, but banks will expect you to have strong evidence of stable income and good savings habits. You\u2019ll pay LMI, and your repayments will be higher.For a $700,000 property with a 10% deposit, your loan would be about $630,000. Monthly repayments tested at 7% are around $4,150 \u2014 meaning lenders typically want to see a combined household income of at least $140,000+ for approval at this loan-to-value ratio.If your income is lower, it may be challenging to get approved at this LVR.Less Than 10% DepositUsually only available for first home buyers through government schemes \u2014 but even then, lending criteria are strict.If your loan is $650,000 or more with less than 10% deposit, lenders will want to see a household income closer to $150,000+, or evidence of strong rental income or other offsets.This is the toughest bracket to qualify for because banks are cautious with higher risk lending.Why Your Income Matters More Than EverBanks now assess your ability to repay loans with higher interest rate buffers, often testing repayments at 7% or more. This means:Even if your current rate is around 6%, they\u2019ll check if you can still afford repayments at 7%+Your living expenses and other debts are scrutinised closelyA strong, stable income is crucial \u2014 casual or irregular income can be a red flagBottom line:Your deposit is important, but it\u2019s only one part of the equation. Your income, expenses, and credit will have an even bigger say in what you can borrow today.If you want a realistic assessment of your borrowing power and how to plan your deposit \u2014 let\u2019s chat. I\u2019ll help you cut through the noise and figure out what\u2019s achievable right now.Share this:\t\t\t\tEmail a link to a friend (Opens in new window)\t\t\t\tEmail\t\t\t\t\t\t\tShare on Facebook (Opens in new window)\t\t\t\tFacebook\t\t\t\t\t\t\tShare on LinkedIn (Opens in new window)\t\t\t\tLinkedIn\t\t\t\t\t\t\tShare on Pinterest (Opens in new window)\t\t\t\tPinterest\t\t\t\t\t\t\tShare on Mastodon (Opens in new window)\t\t\t\tMastodon\t\t\t\t\t\t\tPrint (Opens in new window)\t\t\t\tPrint\t\t\t\t\t\t\tShare on Reddit (Opens in new window)\t\t\t\tReddit\t\t\t\t\t\t\tShare on X (Opens in new window)\t\t\t\tX\t\t\t\t\t\t\tShare on Tumblr (Opens in new window)\t\t\t\tTumblr\t\t\t\t\t\t\tShare on Telegram (Opens in new window)\t\t\t\tTelegram\t\t\t\t\t\t\tShare on Threads (Opens in new window)\t\t\t\tThreads\t\t\t\t\t\t\tShare on WhatsApp (Opens in new window)\t\t\t\tWhatsApp\t\t\t\t\t\t\tShare on Nextdoor (Opens in new window)\t\t\t\tNextdoor\t\t\t\t\t\t\tShare on X (Opens in new window)\t\t\t\tX\t\t\t\t\t\t\tShare on Bluesky (Opens in new window)\t\t\t\tBluesky\t\t\t"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2025","item":"https:\/\/truthgroup.com.au\/2025\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"07","item":"https:\/\/truthgroup.com.au\/2025\/\/07\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"02","item":"https:\/\/truthgroup.com.au\/2025\/\/07\/\/02\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"How Much Deposit Do You Really Need to Buy Property in 2025?","item":"https:\/\/truthgroup.com.au\/2025\/07\/02\/30954\/#breadcrumbitem"}]}]