How Much Deposit Do You Need for an Investment Property?

Q: How Much Deposit Do You Need for an Investment Property?

The required deposit depends on the lender, property and borrower. A larger deposit usually widens lender choice, while purchase costs and a cash buffer need to be funded separately.

Deposit and lending ratio

Lenders express the loan against the property's assessed value. A lower ratio can improve policy options, but the contract price and valuation may differ, leaving the buyer to fund a larger gap.

Allow for costs beyond the deposit

Transfer duty, conveyancing, inspections and loan costs sit alongside the deposit. Investors should also retain a buffer for vacancy, maintenance and rate changes.

Using equity

Available equity is not the same as usable borrowing capacity. A lender still assesses repayments across all existing and proposed debts, and separate loan splits can make purposes easier to track.

Key points

Deposit needs vary by lender
Valuation can affect the required cash
Purchase costs are additional
Equity use still requires serviceability

Frequently asked questions

Can equity replace a cash deposit?

It can fund deposit and costs in some structures, subject to valuation, total lending ratios and serviceability.

Do investors always need 20%?

Not always, but higher lending ratios can narrow lender options and add costs or policy restrictions.

Important: This guide provides general information only and does not constitute financial, credit, or legal advice. Finance options depend on individual circumstances, lender criteria, and assessment. Envision Finance is a comparison and referral service helping you find suitable options from our panel of lenders.