- Deposit options vary: At Hobart’s median dwelling value of $752,397, a 5% deposit is about $37,620, compared with $75,240 at 10% and $150,479 at 20%.
- TAS duty fees apply: Your savings target needs to account for property transfer duty and purchasing costs as well as your deposit.
- Assistance programs exist: Eligible buyers may be able to reduce the upfront hurdle through government support or a family guarantor.
Saving a deposit for a Hobart property doesn’t necessarily mean working towards 20%. The right target depends on how soon you want to buy, the property you’re considering and the home loan options available to you.
Cotality puts Hobart’s median dwelling value at $752,397 in August 2026, correct at the time of writing. At that price, the difference between having 5% saved and reaching 20% is more than $112,000.
So rather than treating 20% as the default, it can be useful to understand what you gain, and give up, at each deposit level.
How your options change as your deposit grows
A smaller deposit can potentially get you into the Hobart market sooner, while a larger deposit reduces the amount you need to borrow and can eventually remove lender’s mortgage insurance (LMI).
At Hobart’s current median dwelling value, the savings targets look like this:
|
Deposit |
Savings required |
Approx. loan |
LVR |
What it means |
|
5% |
$37,620 |
$714,777 |
95% |
Lowest savings hurdle, but LMI generally applies without an eligible alternative |
|
10% |
$75,240 |
$677,157 |
90% |
Smaller loan and LMI may cost less than at 95% LVR |
|
20% |
$150,479 |
$601,918 |
80% |
LMI generally not required |
A 5% deposit Hobart scenario requires the least cash upfront, but leaves you borrowing 95% of the property’s value. LMI will generally apply at that level unless you’re eligible for an alternative such as the Australian Government 5% Deposit Scheme or a guarantor arrangement.
At 10%, you’ve doubled your deposit and reduced the size of your loan. LMI may still apply, but its cost could be lower than at 95% LVR, depending on the lender and loan.
Reaching 20% generally removes LMI and leaves you with a substantially smaller loan. The trade-off is time: moving from a 10% to a 20 percent deposit Hobart scenario at the median value means saving roughly another $75,000 before allowing for buying costs.
“I think buyers sometimes can get too focused on 20% as the finish line. If you’ve already saved 10%, the useful question is what another year or two of saving will actually change. If it gives you a meaningfully smaller loan or better lending options, waiting might make sense. If it doesn’t, it’s worth understanding what buying with the deposit you already have would look like,” said Andrew Lee, Loan Market broker.
LMI protects the lender rather than the borrower and its cost isn’t fixed. Comparing actual loan scenarios can therefore be more useful than assuming 5%, 10% or 20% is automatically the right target.
How much cash do you need beyond the deposit?
Your deposit is only the money you’re contributing towards the purchase price. You’ll also need to consider Tasmanian property transfer duty and expenses such as conveyancing, searches and property inspections.
Tasmania calculates duty on the greater of the property’s purchase price or its unencumbered value. At current rates, a $752,397 Hobart property would attract approximately $29,135 in duty, assuming no exemption applies.
That makes the real savings exercise quite different from simply calculating how much deposit for a Hobart home you need. Someone targeting the median with a 10% deposit, for example, would need to allow for the $75,240 deposit plus approximately $29,135 in duty, taking those two major upfront amounts to around $104,375 before other purchasing costs.
First home buyers should also pay particular attention to the date of purchase. Tasmania previously offered a 100% duty exemption for eligible first home buyers purchasing established homes valued at $750,000 or less, but this applied only to qualifying transactions settling between 18 February 2024 and 30 June 2026. For an established home settling after 30 June 2026, that first home buyer exemption is no longer available.
Buyers should also allow for conveyancing or legal fees, title searches and building and pest inspections. Depending on the property, additional specialist inspections or strata-related checks may also be appropriate.
What help is available to Hobart first home buyers?
While Tasmania’s established-home duty exemption has ended, first home buyers may still have access to assistance depending on the property they purchase. The two main programs to understand are the Australian Government 5% Deposit Scheme and Tasmania’s First Home Owner Grant.
Under the Australian Government 5% Deposit Scheme, eligible first home buyers can purchase with a minimum 5% deposit without paying LMI. Applicants generally need to be at least 18, an Australian citizen or permanent resident and either buying their first home or not have owned property or land in Australia during the previous 10 years.
Buyers still need to satisfy a participating lender’s credit requirements and the property must be owner-occupied.
Hobart’s current property price cap under the scheme is $700,000. That’s below the city’s $752,397 median dwelling value, but a median isn’t a minimum. Eligible buyers purchasing an individual Hobart property for $700,000 or less may still qualify.
Buyers considering a new home have another potential source of assistance. Tasmania’s First Home Owner Grant is currently $20,000 for eligible new-home transactions commencing between 1 July 2026 and 30 June 2027. The grant applies to qualifying new homes rather than established properties.
That distinction is important. Buying an established first home no longer provides access to the temporary transfer duty exemption, while buying or building an eligible new home may qualify for the $20,000 state grant. The federal deposit scheme is separate again and can potentially apply to eligible new or established properties within its price cap.
Could a family guarantor help bridge the deposit gap?
For some Hobart buyers, the difficulty isn’t being able to afford the repayments. It’s accumulating the deposit while also paying rent and meeting everyday expenses.
A guarantor home loan can potentially address that problem by allowing an eligible family member to provide additional security, generally using equity in their own property. Depending on the lender and structure, this may allow the buyer to purchase with a smaller cash contribution and potentially avoid LMI.
It doesn’t increase how much the buyer can comfortably afford to repay. The borrower still needs to satisfy the lender’s servicing and credit requirements, while the guarantor must also meet the lender’s eligibility criteria.
“A guarantor arrangement can be useful when the deposit is the thing holding a buyer back rather than their ability to repay the loan. But I’d want everyone involved to be clear about what is being guaranteed, how that guarantee can eventually be released and what the risks are before proceeding. It needs to make sense for the family member helping as well as the person buying,” said Daniel Winston, Loan Market broker.
The guarantee may potentially be released later once the borrower has built sufficient equity and meets the lender’s requirements. However, acting as guarantor carries genuine financial risk, including potentially becoming responsible for the guaranteed debt if the borrower defaults, so independent legal and financial advice should be considered.
How should you set your Hobart deposit target?
Rather than automatically aiming for 20%, start with the price range of properties you realistically want to buy. You can then compare what different deposit levels would mean for your loan size, LMI and total upfront costs.
For some buyers, waiting and building a larger deposit may produce a meaningfully better lending position. For others, the additional time required to reach 20% may make a smaller deposit worth considering, particularly if they qualify for government support or have access to a guarantor.
A mortgage broker can model several Hobart deposit scenarios rather than looking at the deposit in isolation. That can show you what changes when you adjust your deposit, purchase price or loan structure and help you set a savings target based on the property you actually want to buy.
Ready to map out your Hobart property journey?
Understanding your deposit needs gives you clarity when looking at homes in Hobart. A Loan Market broker can walk you through your numbers, look into eligible government schemes and help you pick a home loan option.
Get in touch with a Loan Market broker today.
FAQs about Hobart property deposits
Can I buy a house in Hobart with a 5% deposit?
Potentially. Some lenders offer home loans to eligible buyers with a 5% deposit, although LMI will generally apply unless you qualify for an eligible alternative. First home buyers using the Australian Government 5% Deposit Scheme also need to purchase within the current $700,000 Hobart property price cap.
How much is duty on a Tasmanian property purchase?
Tasmanian property transfer duty operates on a sliding scale and is calculated using the greater of the property’s purchase price or unencumbered value. At Hobart’s current $752,397 median dwelling value, duty would be approximately $29,135 under the standard rates, assuming no exemption applies.
The previous 100% duty exemption for eligible first home buyers purchasing established properties up to $750,000 ended on 30 June 2026. First home buyers purchasing after that date should therefore include duty in their calculations when considering an established property.
Is LMI required for a 10% deposit in Hobart?
It commonly is because a 10% deposit generally results in a 90% LVR. However, the actual LMI cost depends on the lender, loan amount and borrower, while eligible buyers may have alternatives through a government scheme or guarantor structure.
