The deposit for a $400,000 house starts at $20,000, or 5%, for an eligible first home buyer under the 5% Deposit Scheme. That buyer pays no mortgage insurance and, in NSW, no transfer duty. Without the scheme, $40,000 at 10% usually means LMI, and $80,000 at 20% avoids it. Buyers who have owned before also pay $12,187 of duty.

Deposit routes on a $400,000 home
Route Deposit Loan LMI Transfer duty
5% with the 5% Deposit Scheme $20,000 $380,000 $0 $0 for an eligible first home buyer
10% standard loan $40,000 $360,000 about $9,000 to $13,000 $0 first home buyer, $12,187 otherwise
20% $80,000 $320,000 $0 $0 first home buyer, $12,187 otherwise

Where does $400,000 buy in NSW?

Mostly regional towns, and apartments in parts of Western and South Western Sydney. The 5% Deposit Scheme cap is $800,000 outside Sydney and the regional centres, so a $400,000 home is well inside it anywhere in NSW.

Does the First Home Owner Grant help at $400,000?

Only for a new home. NSW pays $10,000 to eligible first home owners buying a new or off-the-plan home up to $600,000, or building with a combined land and build up to $750,000. It is paid around settlement or the first progress payment, so it helps with costs rather than the deposit needed at exchange. See First Home Owner Grant NSW.

What income goes with a $380,000 loan?

On our assumptions, about $92,000 for a single applicant with no debts, or $103,000 for a couple, with repayments of about $2,278 a month at 6%. For the next figure up see income needed for a $400k home loan.

What else do you pay at settlement?

Transfer and mortgage registration of $182.73 each, conveyancing, building and pest inspections and, unless exempt, duty. A first home buyer on the scheme needs about $20,000 plus a few thousand dollars of costs. The property buying cost calculator totals them.

How long does it take to save a deposit on $400,000?

At $2,000 a month, 5% of $400,000 takes 10 months to save, before interest and any change in prices.

Time to save each deposit on $400,000
Saving 5% ($20,000) 10% ($40,000) 20% ($80,000)
$1,000 a month 20 months 3.3 years 6.7 years
$2,000 a month 10 months 20 months 3.3 years
$3,000 a month 7 months 13 months 2.2 years

What can cut the deposit on a $400,000 house?

  • The 5% Deposit Scheme: $20,000 down with no mortgage insurance, for eligible buyers under the $1.5 million Sydney cap.
  • Help to Buy: as little as 2% ($8,000) 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% ($40,000) down without mortgage insurance at some lenders.

What are the repayments with each deposit on $400,000?

  • 5% down: a $380,000 loan, $2,278 a month at 6% over 30 years, plus mortgage insurance unless a scheme or waiver applies.
  • 10% down: a $360,000 loan, $2,158 a month at 6% over 30 years, plus mortgage insurance unless a scheme or waiver applies.
  • 20% down: a $320,000 loan, $1,919 a month at 6% over 30 years.

The gap between 5% and 20% down is $360 a month for 30 years.

What does mortgage insurance cost with 10% down on $400,000?

About $9,000 to $13,000 on a $360,000 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.

Close by: the deposit for a $500,000 house. For any other price, use the deposit calculator.

Questions people ask

How much deposit do I need for a $400,000 house?

$20,000 with the 5% Deposit Scheme if you are eligible, $40,000 at 10% with LMI, or $80,000 to avoid LMI without help.

Do first home buyers pay stamp duty on $400,000 in NSW?

No. Homes up to $800,000 are exempt for eligible first home buyers. Other buyers pay about $12,187.

Can I buy a $400,000 home with a 2% deposit?

Single parents and legal guardians with a dependent child can, through the Family Home Guarantee, within the same price caps. See single parent home loans.

Is $20,000 enough to buy a house?

For an eligible first home buyer at $400,000, it covers the deposit. Allow a few thousand more for conveyancing, inspections and registration.

Charles Touma checks the scheme, grant and lender for the exact property and postcode before you offer. A free 30-minute call covers what you could buy. 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, First Home Owner (New Homes) Grant; Revenue NSW, First Home Buyers Assistance Scheme, 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.