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How much in savings do I need to buy a house in each capital city?

How much money do you need to buy a house? Source: Getty

If you’re starting to think about buying a home, it can be tough to know exactly how much money you need to do it.

According to comparison site Finder, the average Australian home buyer saves around 20 per cent for a deposit. But, if you’re able to pay lenders mortgage insurance (LMI), the lender may accept a deposit as low as 5 per cent.

LMI can range depending on the value of the property you’re buying, and the amount you’ve saved. But, LMI doesn’t need to be paid in one go. It can be capitalised on your loan and combined with your regular loan payments.

Some online tools, like Genworth’s LMI premium estimator can help you figure out the costs of LMI, so when it comes to buying a home, you already know the added costs.

And while you’ll have to head to a bank to find out how much you can actually borrow for a loan, we’ve broken down the costs of a deposit and stamp duty in each capital city based on their respective median house prices.

How much money do I need to buy a house in Sydney?

Total with 5 per cent deposit: $93,187 + LMI

Total with 20 per cent deposit: $247,381

In Sydney, the current median house price is $1,027,962.

If you’re planning on buying a home with a low-deposit home loan (at 5 per cent), you’ll need a deposit of $51,398.

Then, you’ll need to cater for LMI, which, according to Genworth’s LMI calculator, can be around $44,043.

If you’re paying a 20 per cent deposit, that will set you back $205,592, but you don’t need to worry about LMI.

You’ll also need to factor in stamp duty costs, which need to be paid upfront in addition to your deposit.

In Sydney, first home-buyers don’t need to pay stamp duty at all for purchases up to $650,000.

Even if you’re not a first home-buyer, you won’t need to pay stamp duty for purchases of a home up to $550,000.

Above that, stamp duty is at a rate of around 4.1 per cent, which works out to be $41,789 at Sydney’s median house price.

How much money do I need to buy a house in Melbourne?

Total with 5 per cent deposit: $84,186 + LMI

Total with 20 per cent deposit: $205,609

In Melbourne, the median house price is $809,489.

With a low-deposit 5 per cent home loan, you’ll need $40,474. But, you will need to factor in LMI costs to your total mortgage value.

If you’re putting a 20 per cent deposit down, you’ll need to have $161,897 saved, but you will save on no added LMI.

There’s no stamp duty grace in Melbourne either, and it’s actually one of the most expensive cities for stamp duty fees.

At 5.4 per cent, you’ll need to factor in an extra $43,712 in stamp duty fees - which need to be paid up front.

How much money do I need to buy a house in Adelaide?

Total with 5 per cent deposit: $50,991 + LMI

Total with 20 per cent deposit: $132,362

In Adelaide, the median house price is $542,474.

At a low-deposit 5 per cent home loan, you’ll need a $27,123 deposit up-front, but will again have to factor in the extra LMI costs with your total mortgage.

If you’re putting a 20 per cent deposit down, you’ll need to have $108,494 saved.

Stamp duty fees are 4.4 per cent in Adelaide, meaning you’ll need to factor in $23,868 for stamp duty.

How much money do I need to buy a house in Perth?

Total with 5 per cent deposit: $45,578 + LMI

Total with 20 per cent deposit: $125,078

In Perth, the median house price is $529,997.

You’ll need a $26,499 deposit with a 5 per cent deposit home loan. But, you will need to factor in LMI costs to your total mortgage value.

If you’re putting a 20 per cent deposit down, you’ll need to have $105,999 saved.

Stamp duty fees are around 3.6 per cent in Perth, meaning you’ll need to factor in $19,079 for stamp duty.

How much money do I need to buy a house in Brisbane?

Total with 5 per cent deposit: $42,838 + LMI

Total with 20 per cent deposit: $127,388

In Brisbane, the median house price is $563,666.

To make a 5 per cent deposit, you’ll need to have $28,183 saved. Again, you’ll need to add LMI costs on top of the mortgage.

If you’re putting a 20 per cent deposit down, you’ll need to have $112,733 saved.

Stamp duty fees are 2.6 per cent in Brisbane, which means you’ll need to have an extra $14,655 saved.

How much money do I need to buy a house in Canberra?

Total at 5 per cent deposit: $57,795 + LMI

Total at 20 per cent deposit: $166,161

In Canberra, the median house price is $722,440.

For a 5 per cent deposit home loan, you’ll need a $36,122 saved. LMI will again need to be added to the total mortgage cost.

If you’re putting a 20 per cent deposit down, you’ll need to have $144,488 saved.

Stamp duty fees are 3 per cent in Canberra, so you’ll need to have $21,673 saved for stamp duty.

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