30% of $600,000

How it works

The formula for any percentage question is the same: result = base × (percent ÷ 100). Here, $600,000 × (30 ÷ 100) = $180,000 — a full $60,000 more than the $120,000 (20%) that Australian lenders typically require before waiving Lenders Mortgage Insurance (LMI), so a 30% deposit clears that threshold with room to spare rather than sitting right at the cutoff. See Moneysmart’s guide to saving for a home deposit for more on how deposit size affects a loan.

Worked example

Oliver has worked as a mine site electrician for a decade and, after several years on a strong FIFO income, has $180,000 ready for a deposit on a $600,000 house in Mandurah, Western Australia. That’s well past the $120,000 (20%) mark most lenders use as the LMI cutoff. The calculation: $600,000 × 30% = $180,000. Oliver finances the remaining $420,000 through his mortgage, and because his deposit clears the LMI threshold by $60,000, he not only skips the insurance premium entirely but also starts with a smaller loan balance and more equity in the property than a buyer stopping at the standard 20% would have.