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. Lenders’ Mortgage Insurance (LMI) applies for deposits below 20%, adding a cost buyers will factor in. In the Eastern Suburbs, where family homes near sought-after schools are in high demand, competition can mean buyers are prepared to offer larger deposits to strengthen their position. Sellers should realise that buyers with pre-approved finance, and a healthy deposit, are often in a stronger negotiating position. The sales process, typically 4-6 weeks from campaign launch, often sees buyers finalising deposit arrangements during the 2-4 week inspection period. Marketing campaigns, costing between $3,000 and $8,000, are designed to attract these prepared buyers.
Ultimately, the deposit amount is a key factor influencing buyer behaviour and the speed of sale in the Melbourne property market in 2026.