You can buy with a 10% deposit in NSW. Most buyers either pay lenders mortgage insurance, typically thousands of dollars, or avoid it. Eligible first home buyers can use the 5% Deposit Scheme with a 10% deposit and pay no LMI. Some medical, legal and accounting professionals get an LMI waiver at 90%, and a family guarantee is another route.

Ways to buy with a 10% deposit
Route LMI Who it suits
Standard loan at 90% Usually payable Anyone the lender approves
5% Deposit Scheme None Eligible first home buyers under the price cap ($1.5m in Sydney)
Professional waiver None Eligible professions at participating lenders
Family guarantee None Buyers with a parent able to offer security
Low deposit premium A smaller fee instead Some lenders only

A real client file: a 10% deposit on a $780,000 apartment

A real Links client file: a couple renting in Sydney, earning $185,000 together with $120,000 saved, buying a $780,000 apartment as their first home and keeping a cash buffer.

The funding plan as recorded
Item Amount
Purchase price $780,000
Deposit $78,000
Home loan $702,000 (90%)
Purchase costs and insurance allowance $30,000, including $12,000 for LMI
Savings kept $12,000

Their savings had to cover the deposit, the purchase costs and lenders mortgage insurance, and putting in every dollar would have left no buffer, so the budget was set from this breakdown, with the actual insurance and purchase costs to be confirmed. On our assumptions (6% rate, assessed at 9%) the couple can borrow up to about $819,000, so the $702,000 loan fits. The full file is on the real client cases page.

LMI depends on the lender, the insurer and the loan; published ANZ and Westpac examples at 90% run at about 2.5% to 3.7% of the loan. Buyers who qualify for the 5% Deposit Scheme pay no LMI at all, so check eligibility with a participating lender before paying it.

Who gets an LMI waiver at 90%?

Some lenders waive LMI at up to 90% for eligible professionals. Westpac publishes a waiver for registered nurses and midwives earning at least $90,000 and for several allied health professions at the same income, and ANZ publishes 90% waivers for lawyers and for optometrists, physiotherapists, chiropractors and vets. Doctors and dentists can often go to 95%. The full list, by profession, is on no LMI home loans.

What does a 10% deposit cost in LMI?

In published lender examples, about 2.5% to 3.7% of the loan at 90%. The premium is usually added to the loan. How much is LMI shows estimates at 5%, 10% and 15% for three price points.

What else must the 10% cover?

The deposit is not the only cash you need. Budget for transfer duty if you are not exempt, two registration fees of $182.73 each, conveyancing, building and pest inspections and moving costs. First home buyers in NSW pay no transfer duty up to $800,000 and a reduced amount up to $1,000,000; the stamp duty calculator works it out.

Questions people ask

Can I buy a house with a 10% deposit?

Yes, if a lender approves the 90% loan. Expect LMI unless you use the 5% Deposit Scheme, a professional waiver or a guarantor.

Can I use the 5% Deposit Scheme with a 10% deposit?

Yes. The scheme covers deposits from 5% up to under 20%, so a 10% deposit still avoids LMI if you are eligible.

Is it better to wait for 20%?

Not always. Waiting can cost more than LMI if prices rise; it depends on your timeline and the market. What is LVR shows how each extra 5% changes the loan.

Charles Touma compares the LMI route, the scheme and any waiver you qualify for side by side, so you keep as much of your savings as possible. A free 30-minute call covers your deposit and the best route. General information only, not credit advice; scheme rules and lender policies change, and eligibility is confirmed when you apply.

Sources: Housing Australia, 5% Deposit Scheme; ANZ, LMI waiver for legal professionals (August 2024, example premium); Westpac, healthcare LMI waivers; Westpac, saving a deposit (LMI example); Revenue NSW, First Home Buyers Assistance Scheme, checked 20 October 2026.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.