NSW $850k: thicker deposit vs cash kept for offset
Same purchase price — park more into the deposit to clear LMI, or keep a thinner deposit and seed an offset. Duty stays; the interest story changes.
Engine 2026-07-ftc. Educational estimate — not a Revenue Office assessment or credit advice.
Briefing
After duty is funded, you still choose between LVR cleanliness and offset firepower. A thicker deposit can clear mainstream LMI. A thinner deposit can leave cash to seed an offset — while usually bringing LMI into the conversation.
Emptying every account into the deposit can produce a clean LVR and zero resilience. Keeping too much in offset while ignoring LMI can produce a heavy capitalised premium that the offset then has to fight.
Order of operations: fund settlement cash including duty, then decide leftover cash for offset versus emergency buffer outside the loan. Reverse that order and you invent a strategy that fails at settlement.
Open the repayments calculator with the loan size including any capitalised LMI. Test a realistic offset balance you will still have after settlement. Lifetime “interest saved” is not the same as cash freed this month — read the period split on the repayments screen.
This scenario is the leverage conversation. Pair it with the LMI guide and the funds-to-complete guide before you commit.
The decision
After duty is funded, do you want a cleaner LVR, or leftover cash working in an offset against the loan?
- 20% usually targets the mainstream no-LMI line; 10% often flags LMI
- Duty does not care which strategy you pick — fund it either way
- Capitalised LMI raises the balance your offset must fight
- Emptying every account into deposit can leave no offset seed and no buffer
- Use the repayments tool to see interest redirected when offset is funded
What to tick
- State: NSW
- Price: $850,000
- Live in it: Yes
- First home buyer: No
- Compare 20% deposit vs 10% deposit (cash retained for offset)
- Then open Repayments and test offset balance
Engine comparison
20% into deposit
Thicker deposit — typically cleaner LVR / no mainstream LMI. Less leftover cash to seed an offset after duty is paid.
- Stamp duty
- $32,437
- Deposit
- $170,000 (20%)
- LVR
- 80.0%
- LMI flag
- Not flagged
- Funds to complete
- $202,811
5% Deposit Scheme: FHB only (or eligible returning buyers)
10% deposit (keep cash)
Thinner deposit — more cash may remain after settlement for offset or buffer, but 90% LVR usually brings LMI into the conversation. Run repayments with capitalised LMI before calling this a win.
- Stamp duty
- $32,437
- Deposit
- $85,000 (10%)
- LVR
- 90.0%
- LMI flag
- Typically applies
- Funds to complete
- $117,811
5% Deposit Scheme: FHB only (or eligible returning buyers)
Takeaway
Fund duty first. Then choose consciously between LVR cleanliness and offset firepower. Open the DutyStack repayments calculator on the home page, enter the loan size (including any capitalised LMI), and test a realistic offset balance you will still have after settlement. “Interest saved” over the life of the loan is not the same as cash freed this month — read the period split on the repayments screen.