There is no set minimum deposit for an investment property. It depends on the lender, the loan you choose and how the property is valued, and it can differ between lenders for the same price. What you can work out for yourself first is the difference between the deposit and the total cash you need on settlement day.
Deposit versus the total cash you need
Your deposit is the cash you put toward the purchase price. It is one part of what you need, not the whole figure.
On top of the deposit, you also cover stamp duty, legal and conveyancing fees, building and pest inspections, any lender fees and a buffer for costs that turn up late. Add those to the deposit and you get the cash figure to actually plan around.
Example: deposit and loan amount at two LVRs
Example: say you are looking at an illustrative purchase price of $650,000. The loan to value ratio (LVR) a lender sets changes both the deposit and the loan amount, so here it is at two different levels.
At 80% LVR:
- Deposit: 20% of $650,000 = $130,000
- Loan amount: 80% of $650,000 = $520,000
At 90% LVR:
- Deposit: 10% of $650,000 = $65,000
- Loan amount: 90% of $650,000 = $585,000
These are illustrative scenarios, not a minimum or a recommended deposit. What a lender actually approves depends on the lender, the loan and the property.
Now add the other upfront costs. Say the Stamp Duty calculator returns $24,000 for this price and state, and you budget $1,800 for legal and conveyancing, $600 for building and pest inspections, $600 for lender fees and a $4,000 buffer. That is another $31,000, on top of the deposit:
- Total cash at 80% LVR: $130,000 + $31,000 = $161,000
- Total cash at 90% LVR: $65,000 + $31,000 = $96,000
Neither total includes lenders mortgage insurance, which a lender may charge at 90% LVR (see below). Every figure here is a placeholder to show the arithmetic. Replace the price, the LVR and each cost with your own numbers, and ask your lender or broker about LMI, before you rely on the total.
How LVR and lenders mortgage insurance work
Loan to value ratio is the loan amount divided by the property's value, shown as a percentage: loan amount divided by value, times 100. The value a lender uses is usually its own valuation, which can differ from the price you agreed to pay, so the LVR on a deal is not always exactly what you calculate from the purchase price alone.
A higher LVR means a smaller deposit and a larger loan. Lenders commonly charge lenders mortgage insurance (LMI) when the deposit is under 20% of the value, though this varies by lender. LMI protects the lender if you cannot repay the loan, not you, and the cost depends on the lender, the LVR and the loan amount. Ask your lender or broker for the LMI figure that applies to your loan before you rely on it. Moneysmart's glossary entry on LMI explains what it covers and who it protects.
Using equity from another property
If you already own property, some buyers use the equity in it, the gap between its value and what is owed, as part or all of the deposit on the next one. This usually works through a separate loan or an increase to an existing loan secured against that equity, rather than cash savings.
How much equity a lender will let you use, and how it would be structured, depends on your existing loan, the lender's policy and the new property. Confirm what is available to you with your lender or broker before you plan around it.
Pre-approval: what it is and is not
Pre-approval, sometimes called conditional approval, is a lender's indication of how much it may lend you, based on the financial information you provide at the time. It usually lasts a matter of months and gives you a figure to work with while you shortlist properties.
Pre-approval is not a valuation of a specific property, a guarantee of final approval, or a fixed amount you are locked into. A lender can still decline a loan for a particular property, and a pre-approval limit is not a target to spend up to. Final approval depends on the property, an updated look at your finances and the lender's own checks at the time.
Checking stamp duty and other upfront costs
Stamp duty is set by each state and territory. It depends on the price, the state and sometimes how the property will be used, and rates and thresholds change over time. Use the Stamp Duty calculator for an estimate on a given price and state, then check the figure against your state or territory revenue office before you rely on it, especially close to settlement.
Recording your numbers in Virtual Buyers Agent
In your Investor Profile in Virtual Buyers Agent, record the most you'll pay, the cash you have ready and a weekly out-of-pocket limit. Each property you track is compared against them.
Moneysmart's investment property guide covers the wider costs and risks of buying an investment property.
Reviewed 28 September 2026.