Understanding the deposit required to purchase a property in Melbourne involves more than just the headline percentage. As of December 2025, the deposit amount significantly impacts borrowing capacity and the overall financial commitment for buyers, influencing the market dynamics sellers encounter.
Currently in Melbourne, a standard deposit remains around 20% of the property’s purchase price. Given Melbourne’s median dwelling value of approximately $823,495, this translates to roughly $164,699. However, it’s common to see deposits ranging from 5% to 20%, particularly for first-home buyers utilising government schemes. Lenders Mortgage Insurance (LMI) applies for deposits below 20%, adding a cost buyers must factor in. In the Eastern Suburbs, where demand for family homes near schools like those in Balwyn and Doncaster remains strong, competition can favour buyers with larger deposits. Sellers should realise that buyers securing finance with smaller deposits may have longer settlement periods – typically 60 days – to allow time for LMI approval and funds to become available. Marketing campaigns in 2026 will likely highlight properties appealing to a broad range of deposit levels. Preparation costs for sellers, such as styling ($2,000-$8,000) and professional photography ($500-$1,500), don’t directly impact the deposit, but influence the final sale price.
Ultimately, the deposit amount is a key factor in a buyer’s ability to enter the Melbourne property market in 2026, and understanding this dynamic is crucial for sellers aiming to optimise their property’s appeal.