How Much Deposit Do You Really Need in 2025?
Deposit rules have changed. Learn how much first-time buyers and home movers need in 2025, how credit affects deposits, and how to lower long-term costs.
The old rule of “you need 10% deposit” no longer reflects how lenders operate. Deposit requirements in 2025 are flexible - and often personalised.
Why deposit requirements are more flexible now?
Lenders increasingly use risk-based pricing. Instead of rigid percentages, they assess:
Your credit behaviour
Income stability
The property type
Your debt-to-income ratio
As a result, strong applicants may qualify for 5% deposits, while complex cases may need 10–20%.
How your credit score impacts deposit size?
If you have missed payments, defaults, or low credit, lenders may compensate with a higher deposit requirement to reduce risk.
But specialist lenders often accept:
5% deposits for minor issues
10% for recent late payments
15%+ for severe credit events
This is far more flexible than high-street banks.
When a larger deposit saves you thousands?
A small increase in deposit size can shift you into a better LTV bracket:
Examples:
90% → 85% LTV
85% → 80% LTV
Moving to a lower bracket typically reduces the rate by 0.2–0.6%, which can save thousands over the mortgage term.
Want to learn your minimum required deposit? Request an affordability review.