- A 20% deposit usually avoids lender’s mortgage insurance, while a 5% or 10% deposit could potentially help you buy sooner at a higher overall cost.
- Stamp duty is often the biggest upfront cost after your deposit in Adelaide, although eligible first home buyers of new homes may pay none.
- Government-backed options such as the 5% Deposit Scheme and HomeStart loans may reduce the deposit eligible buyers need to save.
Saving for a home in Adelaide can feel like chasing a moving target. You get closer to your savings goal, check the listings again and notice the homes you like have crept further out of reach. Working out the right deposit for an Adelaide property means looking past a single percentage and understanding what each option costs upfront and over time. This guide compares Adelaide deposit scenarios and the extra costs and support options local buyers should know about.
Understanding Adelaide deposit requirements
Many lenders could potentially accept a deposit for an Adelaide property of 5% or 10%, subject to lender eligibility. A 20% deposit, however, is generally the benchmark for avoiding lender’s mortgage insurance (LMI). The dollar amount you need depends heavily on the type of home you buy and where.
According to the Cotality Home Value Index, Adelaide’s median dwelling value was $937,207 in August 2026, with houses at $999,091 and units at $684,469. On those figures, a 20% deposit on a median-priced house would be close to $200,000, versus roughly $137,000 for a median unit. That gap is significant. It helps explain why many buyers weigh up units or outer suburbs when deciding how much deposit for an Adelaide home is realistic.
Adelaide values dipped 0.8% in August and sit 1.6% below their May 2026 peak, yet they are still 8.6% higher than a year ago and 64% higher over five years. The Loan Market borrowing power calculator can help you compare your savings and potential borrowing power with these prices. Median figures are correct at the time of writing and may change.
Breaking down 5%, 10% and 20% deposits in Adelaide
A smaller deposit could potentially help you buy sooner, but it usually means a bigger loan and LMI costs. A 20% deposit takes longer to save and may avoid LMI, subject to lender eligibility. The table below shows how these Adelaide deposit scenarios could look on a sample $750,000 purchase.
|
Deposit |
Deposit amount |
Loan amount |
Loan-to-value ratio |
LMI likely? |
Stamp duty (established home) |
Deposit plus stamp duty |
|---|---|---|---|---|---|---|
|
5% |
$37,500 |
$712,500 |
95% |
Yes, unless eligible for a scheme |
$35,080 |
$72,580 |
|
10% |
$75,000 |
$675,000 |
90% |
Yes, in most cases |
$35,080 |
$110,080 |
|
20% |
$150,000 |
$600,000 |
80% |
Generally no |
$35,080 |
$185,080 |
Source: RevenueSA standard stamp duty rates. Figures exclude LMI, conveyancing, registration fees and other purchase costs.
A 5% deposit in Adelaide may shorten the time it takes to get into the market, although LMI can add thousands of dollars to your costs. A 10% deposit in Adelaide means a smaller loan and generally a lower LMI premium than borrowing 95%. Holding out for a 20% deposit in Adelaide usually avoids LMI and lowers your repayments, but saving the extra $75,000 to $112,500 in this example takes time.
The right choice often depends on your circumstances.
“A lot of Adelaide buyers assume they have to wait for 20%, but that isn’t always the best outcome if prices move while they’re saving. Sometimes paying LMI to buy sooner makes sense and sometimes it doesn’t, so it’s worth running the numbers on both,” said Jo Poutakidis of Loan Market in Norwood.
Extra costs to remember in South Australia
Stamp duty is usually the largest upfront cost after your deposit when you buy in Adelaide. Conveyancing, title registration and inspections also need to be covered. Building these costs into your savings target early could potentially help you avoid a shortfall at settlement.
South Australia’s standard stamp duty rates apply to owner-occupiers and investors alike, adding $35,080 to a $750,000 purchase. Eligible first home buyers purchasing a new home, an off-the-plan apartment or vacant land to build on may pay no stamp duty, with no property value cap for contracts from 6 June 2024. That relief does not extend to established homes.
Buyers of a new home may also qualify for the First Home Owner Grant of up to $15,000.
Conveyancer and solicitor fees vary, so getting quotes early could help you set a realistic target. Land Services SA charges fees to register the transfer and mortgage, which you can estimate with its property transfer fee calculator. Building and pest inspections, strata searches for units and some lender fees are also worth budgeting for. It all adds up.
Pathways to buy with a smaller deposit
Several programs may help eligible Adelaide buyers purchase with less than a 20% deposit and reduce or avoid LMI. The main options are the Australian Government 5% Deposit Scheme, HomeStart Finance loans and a family guarantee. Each has its own eligibility requirements and conditions.
A family guarantee allows a parent or close relative to use equity in their own property as extra security for your loan. This could potentially allow you to borrow more than 80% without paying LMI. The guarantor takes on genuine financial risk, so independent legal advice is generally recommended.
Australian Government 5% Deposit Scheme
Formerly known as the Home Guarantee Scheme, the Australian Government 5% Deposit Scheme allows eligible first home buyers to purchase with a deposit from 5% without paying LMI. The government guarantees part of the loan instead. The property price cap for the Adelaide capital city area is $900,000, which covers the sample purchase above. Eligible single parents and legal guardians may be able to buy with a deposit from 2% under the Family Home Guarantee. You will still need funds for stamp duty and other upfront costs.
HomeStart Finance loans
HomeStart does not charge LMI and offers several low-deposit home loan options. Its Low Deposit Loan could potentially help eligible buyers purchase an established home in metropolitan South Australia with a deposit from 3%. The Graduate Loan may allow eligible buyers with a Certificate III or higher to buy an established home from 2% or build from 5%. Income limits and other conditions apply.
Local support options are broader than many buyers expect.
“Between the federal scheme and HomeStart, there are more ways into the Adelaide market with a small deposit than most people realise. Each option has its own rules around price caps, income and property type, so check the details before inspecting homes,” said Adam D’Aloia of Loan Market Payneham.
Ready to check your Adelaide borrowing options?
Understanding your deposit for an Adelaide property, upfront buying costs and potential low-deposit pathways can give you a clearer idea of what you may need before starting your property search, whether you are aiming for a 5%, 10% or 20% deposit.
To compare lending options, check your eligibility for South Australian schemes and discuss which deposit strategy may suit your circumstances, contact a local Loan Market broker who can support you from your first conversation through to settlement.
Frequently asked questions
Can I get a home loan in Adelaide with a 5% deposit?
Yes, it could potentially be possible, subject to lender eligibility. Many lenders accept a 5% deposit with LMI, while eligible first home buyers may be able to avoid LMI through the Australian Government 5% Deposit Scheme on homes up to $900,000 in the Adelaide capital city area. HomeStart may also offer lower deposit options for eligible buyers. A 5% deposit does not guarantee approval, as lenders will still assess your income, expenses and existing debts.
Does SA stamp duty apply to eligible first home buyers?
It depends on the property. Eligible first home buyers purchasing a new home, an off-the-plan apartment or vacant land to build on may pay no stamp duty, with no value cap for contracts from 6 June 2024. First home buyers of established homes generally pay the standard rates.
How is LMI calculated on an Adelaide property?
LMI is generally calculated as a percentage of the loan amount, and the rate usually increases as your loan-to-value ratio rises. The premium can also vary depending on the lender, the insurer, the loan size and whether you plan to live in the home or rent it out. It typically applies when you borrow more than 80% of the property’s value, although exemptions and alternative lending options may be available.
How much deposit for an Adelaide home do I need to avoid LMI?
Most lenders require a deposit of at least 20% to avoid LMI. On Adelaide’s median house value of $999,091, that would be close to $200,000 before stamp duty and other costs. Eligible buyers could potentially avoid LMI with a smaller deposit through a government scheme, a HomeStart loan or a family guarantee.
Can I use the 5% Deposit Scheme to buy an established home in Adelaide?
Yes, the scheme can potentially be used for new or existing homes, including houses, townhouses and apartments. Both the purchase price and the lender’s valuation must sit at or below the $900,000 cap for the Adelaide capital city area. Eligibility criteria apply, and the scheme is only available through participating lenders.
