Understanding deposit requirements for investment properties in Melbourne involves considering lender policies and your individual financial circumstances. As of December 2025, lenders generally require a larger deposit for investment properties compared to owner-occupied homes, reflecting the increased risk associated with rental income fluctuations.
Currently in Melbourne, a typical deposit for an investment property ranges from 10% to 20% of the purchase price. However, this can vary significantly. Lenders assess factors like your income, existing debts, and credit history. In the Melbourne Eastern Suburbs, where median dwelling values are around $823,495, this translates to a deposit between $82,349 and $164,699. It’s also important to factor in additional costs beyond the deposit, such as stamp duty, legal fees, and building & pest inspections – realistically adding $10,000 – $20,000 to initial expenses. Many investors also need to demonstrate a buffer for potential interest rate rises, and lenders may require evidence of rental income projections. Fletchers’ experience shows that well-presented properties in desirable school zones, like those frequently found in Balwyn or Doncaster, often attract a wider pool of potential tenants, which can positively influence lender assessments.
Securing pre-approval from a lender is a crucial first step, allowing you to understand your borrowing capacity and deposit requirements before beginning your property search in 2026.