The deposit for a $500k house in NSW starts at $25,000: an eligible first home buyer can use the 5% Deposit Scheme with that 5% deposit and pay no mortgage insurance and no transfer duty. For a guarantee, a gifted deposit and the other ways in, see low deposit home loans. Outside the scheme, a 10% deposit of $50,000 usually means paying LMI, and a 20% deposit of $100,000 avoids it. Allow extra for registration, conveyancing and inspections on top.

Deposit routes on a $500,000 home
Route Deposit Loan LMI Transfer duty
5% with the 5% Deposit Scheme $25,000 $475,000 $0 $0 for an eligible first home buyer
10% standard loan $50,000 $450,000 about $11,000 to $17,000 $0 first home buyer, $16,687 otherwise
20% $100,000 $400,000 $0 $0 first home buyer, $16,687 otherwise

Where can you buy at $500,000?

In Sydney, $500,000 is mostly a one or two bedroom unit in the outer suburbs, or a studio closer in. In regional NSW it can buy a house in many towns, where the 5% Deposit Scheme cap is $800,000, so the scheme still applies. Small units can attract tighter lending limits; see small apartment home loans. For a lower price, see how much deposit for a $400k house.

Could a $500,000 new home get the First Home Owner Grant?

Yes, if it is a new home and you are eligible. The NSW grant is $10,000 for a new home worth up to $600,000, or up to $750,000 for house and land. An established home does not qualify. The grant can go towards the deposit; see the First Home Owner Grant guide.

What income do you need?

Income needed for the loan on a $500,000 purchase
Deposit Loan Single Couple
5% $475,000 about $109,500 about $121,100
10% $450,000 about $104,900 about $116,400
20% $400,000 about $95,600 about $107,100

The income needed for a $500k home loan article shows the figures for a $500,000 loan rather than a $500,000 price.

What does the lender check about the deposit?

That the money is yours and was saved over time. Most lenders want to see genuine savings built up over about three months, though rent paid on time can count with some lenders. A gift from family is accepted with a signed gift letter; see the gift letter template.

Questions people ask

How much deposit do I need for a $500,000 house?

$25,000 if you are an eligible first home buyer using the 5% Deposit Scheme; $50,000 at 10% with LMI; $100,000 to avoid LMI without help.

Do I pay stamp duty on a $500,000 home?

Not as an eligible NSW first home buyer. Otherwise transfer duty is about $16,687 at the 2026-27 rates.

Can a single parent buy at $500,000 with 2%?

Possibly. Eligible single parents can use a 2% deposit, $10,000 here, under the 5% Deposit Scheme; see single parent home loans.

Charles Touma works out the deposit, duty and costs for the exact property and checks the scheme and grant before you offer. A free 30-minute call covers what you could buy. Income on our assumptions: principal and interest at the 6% example rate, assessed at 9%, 30 years, no other debts. LMI ranges from published ANZ and Westpac examples; duty at the 2026-27 NSW rates. 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; Revenue NSW, First Home Buyers Assistance Scheme; Revenue NSW, First Home Owner (New Homes) Grant; Revenue NSW, transfer duty rates 2026-27, 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.