How much deposit do I need for a $600,000 house under the 5% scheme?

The deposit itself is $30,000, which is 5% of the price. On top of that, budget roughly $4,000 for conveyancing, building and pest, and other settlement costs.

Do first home buyers pay stamp duty on a $600,000 home in NSW?

Generally no. First home buyers in NSW are exempt from stamp duty up to $800,000, with a concession between $800,000 and $1,000,000. You need to meet the eligibility rules.

How much does a conveyancer cost when buying a home?

Budget around $2,500. They handle the contract and the legal side of becoming a property owner.

What other costs are there when buying a first home?

Building and pest inspection, transfer fees, and sometimes council and water rates adjusted at settlement. Together with the conveyancer, that's roughly $4,000 in most first home purchases.

Should I use all my savings to buy my first home?

No. Repayments start the month after you settle, so keep a buffer or have a clear plan to keep saving. Under the 5% scheme there are limits on how much you can keep, but you can keep some.

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How much cash do I actually need for my deposit to buy a $600,000 property?

Bayley Clarke · Mortgage broker on the road · Last checked 16 October 2026 · 3 min read

The short answer

If you're a first home buyer in NSW buying a $600,000 place under the 5% scheme, I normally say 5% plus $4,000. That's $30,000 for the deposit and roughly $4,000 for the costs around it, so about $34,000 in cash.

There's no stamp duty in that number because first home buyers in NSW don't pay it until the price goes past $800,000. But don't zero out your bank account to get the keys. Your loan repayments start the very next month, so you want a buffer on top or a clear plan to keep saving.

The 90 second version, filmed from the driver's seat. The rest of this page is the detail underneath it.

The deposit: $30,000

Under the 5% scheme you only need a 5% deposit, so on a $600,000 purchase that's $30,000 for the house itself. The government guarantees part of the loan, which is what lets you get in at 5% without paying lenders mortgage insurance.

That's the biggest number, but it's not the only one. The mistake people make is saving exactly the deposit and then finding out at the end that there's a handful of other costs that need cash too.

Stamp duty: nothing, in this case

I'm assuming you're a first home buyer in NSW, which is great, because the stamp duty exemption covers purchases up to $800,000. At $600,000 you're well under it, so you're not going to have stamp duty. Brilliant.

That's a big deal. On a purchase this size, stamp duty would otherwise be a five figure cost sitting on top of your deposit. Between $800,000 and $1,000,000 there's a concession rather than a full exemption, so the number starts to climb once you go past $800,000. Other states have their own rules, so the maths changes if you're buying somewhere else.

The other costs: about $4,000

You've got your conveyancer or legal professional, who takes care of the contract and everything to do with becoming a property owner. Budget around $2,500 for them. Then there's the building and pest inspection, transfer fees, and sometimes council and water rates. Those little things get adjusted into the settlement for your purchase, depending on what the seller has already paid.

Add it up and that's where my rule of thumb comes from: 5% plus $4,000 is what you need to buy under the 5% scheme. On a $600,000 place, that's roughly $34,000 cash.

The honest bit: $34,000 is the floor, not the target

You don't want to zero out your bank account just to get the keys to your first home, because guess what? You've got loan repayments starting that very next month. Something will break, someone will get sick, the car will need tyres.

So you probably want a buffer above that $34,000, or at least know you're going to keep saving once you've picked up the keys, so you're not putting yourself out too much. Under the 5% scheme there's a cap on how much you can keep, but you're allowed to keep something.

Want your actual number, not the rule of thumb?

A 30 minute call. We work out your deposit, your costs and your buffer for the price you're looking at, and what your repayments would look like week to week.

Book a 30 minute call Call 0437 189 939

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Can I use money sitting in my parents' account as savings?

No. To the bank, money in mum and dad's account is their money.