The deposit for a $1,000,000 house starts at $50,000 for an eligible first home buyer using the 5% Deposit Scheme, without mortgage insurance. Everyone, first home buyers included, then pays $39,187 of NSW duty at this price, so the cash to buy is about $90,000. Without the scheme, 20% is $200,000.

Deposit routes on a $1,000,000 home
Route Deposit Loan LMI Cash with duty and registration
5% with the 5% Deposit Scheme $50,000 $950,000 $0 $89,552
5% with a family guarantee $50,000 $950,000 plus costs if needed $0 from $39,552
10% standard loan $100,000 $900,000 about $22,000 to $33,000 $139,552
20% $200,000 $800,000 $0 $239,552

Why is the duty the bigger hurdle at $1 million?

Because the first home buyer concession has run out. At $800,000 an eligible buyer pays no duty and needs about $40,000. At $1 million they need $50,000 plus $39,187. The duty is close to the whole deposit again, and lenders do not lend it.

Is it better to save 20% or buy with 5%?

Saving the extra $150,000 takes years in which prices and rents move. With the scheme, the loan is $150,000 larger, about $899 a month more at 6%, but no mortgage insurance is paid and you own sooner. The rent versus buy calculator compares the two paths.

What income goes with the loan?

On our assumptions a $950,000 loan needs about $207,000 single or $209,000 as a couple with no debts. An $800,000 loan about $174,000 or $181,000. See income needed for a $1m home loan.

What are the repayments with each deposit on $1 million?

  • 5% down: a $950,000 loan, $5,696 a month at 6% over 30 years, plus mortgage insurance unless a scheme or waiver applies.
  • 10% down: a $900,000 loan, $5,396 a month at 6% over 30 years, plus mortgage insurance unless a scheme or waiver applies.
  • 20% down: a $800,000 loan, $4,796 a month at 6% over 30 years.

The gap between 5% and 20% down is $899 a month for 30 years.

What can cut the deposit on a $1 million house?

  • The 5% Deposit Scheme: $50,000 down with no mortgage insurance, for eligible buyers under the $1.5 million Sydney cap.
  • Help to Buy: as little as 2% ($20,000) with the government taking a share, if your income is under $103,000 single or $165,000 joint and the price is within the cap.
  • A family guarantee: parents’ equity stands in for the deposit, so the cash needed can be costs only. See buying with no deposit.
  • An LMI waiver if your profession qualifies: 10% ($100,000) down without mortgage insurance at some lenders.

What does mortgage insurance cost with 10% down on $1 million?

About $22,000 to $33,000 on a $900,000 loan, depending on the lender and your profile. Most lenders let you add it to the loan. That avoids paying it in cash, but you pay interest on it for the life of the loan.

How much cash do you need on top of the deposit?

  • Duty: $39,187 for most buyers.
  • Transfer and mortgage registration: $365.
  • Conveyancing, inspections and lender fees: your quotes.
  • Council and water rates: adjusted between buyer and seller at settlement, usually a few hundred dollars either way.

Close by: the deposit for a $900,000 or a $1.5 million house. For any other price, use the deposit calculator.

Questions people ask

How much deposit do I need for a $1 million house?

$50,000 with the 5% Deposit Scheme, $100,000 at 10% with LMI, or $200,000 to avoid LMI without help, plus duty.

Is $1 million within the 5% Deposit Scheme cap?

Yes in Sydney and the NSW regional centres, where the cap is $1.5 million. Not in the rest of NSW, where it is $800,000.

What is the stamp duty on a $1 million house?

$39,187 for every buyer at 2026-27 rates. See stamp duty on $1 million.

Can a guarantor cover stamp duty?

A guarantee can let you borrow more than the price, which can cover duty and costs. It depends on the lender and the guarantor’s equity.

Charles Touma compares the scheme, a family guarantee and a larger deposit for your exact purchase. A free 30-minute call covers your options. General information only, not credit advice. Lender policies change, and your own circumstances decide what suits you.

Sources: Housing Australia, 5% Deposit Scheme; Housing Australia, 5% Deposit Scheme price caps; Revenue NSW, transfer duty rates 2026-27; Moneysmart, lenders mortgage insurance, checked 27 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.