Key Highlights
- The standard deposit most lenders prefer is 20% of the property’s purchase price but this is not the only pathway into the market
- Borrowing more than 80% of the property value typically triggers Lenders Mortgage Insurance (LMI), which can add tens of thousands of dollars to your loan costs
- Queensland first home buyers purchasing a new home can currently access a $30,000 First Home Owner Grant for contracts signed before 30 June 2026
- The First Home Guarantee allows eligible buyers to purchase with just a 5% deposit and no LMI — with no income caps and no limit on places as of October 2025
- From 1 May 2025, first home buyers in Queensland pay zero stamp duty on new homes and vacant land, with no property value cap
- For established homes, a full stamp duty concession applies on properties up to $709,999, with a partial concession up to $800,000
- A family member can act as a guarantor, allowing some buyers to purchase with a much smaller deposit or even no deposit at all
- Your deposit is just one part of the picture, you also need to budget for stamp duty (if applicable), conveyancing fees, building and pest inspections, and moving costs
- A mortgage broker can help you identify which government schemes you qualify for, how to stack them, and which lenders accept the smallest deposits with the best terms
Saving for a home deposit is one of the biggest financial goals most Australians will ever take on. But before you start calculating how long it will take to reach a magic number, it’s worth understanding that “how much deposit do I need” has a more nuanced answer than most people realise.
The amount you need depends on whether you’re buying new or established, whether you qualify for government assistance, whether you want to avoid LMI, and how your lender assesses your overall position. In Queensland especially, the combination of available grants, stamp duty concessions, and federal guarantee schemes has made a smaller deposit more viable than at almost any point in recent history.
This guide breaks down exactly what you need to know, with current Queensland figures confirmed as at March 2026. If you’re also trying to understand your overall borrowing position, our guide on how much you can borrow for a home loan covers the lender assessment process in detail.
Stanford Financial
Deposit required at each LVR tier — $700,000 QLD property
What changes as your deposit grows · April 2026
The Standard Deposit: Why Lenders Love 20%
Most lenders in Australia assess home loans against a Loan to Value Ratio (LVR), that is, the size of your loan expressed as a percentage of the property’s value. A 20% deposit means an 80% LVR, which is the threshold most lenders treat as the boundary between standard and higher-risk lending.
When you borrow above 80% LVR, meaning your deposit is less than 20%, the lender typically requires you to pay Lenders Mortgage Insurance (LMI). LMI is not insurance for you; it protects the lender if you default. The cost can be significant.
On a $700,000 property with a 5% deposit, LMI could add approximately $25,000 to $30,000 to your loan costs. On a $900,000 property, that figure could exceed $40,000.
This is why 20% has long been held up as the gold standard deposit, it removes LMI from the equation entirely. But as we’ll explain below, there are several legitimate pathways to purchase with a smaller deposit without carrying that cost.
Stanford Financial
Lenders Mortgage Insurance (LMI): how much does it cost?
Indicative LMI at different LVRs and purchase prices · Helia/Genworth rates · April 2026
LMI estimates are indicative only based on Helia/Genworth published rate cards. Actual LMI varies by lender, borrower profile, and loan type. LMI can be capitalised into the loan — meaning you don't need to pay it upfront — but it does increase your total loan balance and interest paid.
Can I Buy a House With Less Than 20% Deposit?
Yes, and many Queenslanders do. Here are the main scenarios:
10% Deposit (90% LVR)
A 10% deposit is a common entry point for buyers who don’t yet have 20% saved. LMI will apply, though the cost is lower than at 5% LVR. Some lenders are more competitive than others at 90% LVR. Our low deposit home loans page covers what to expect at this level, and a broker can identify which lenders offer the best rates and terms for your situation.
5% Deposit via the First Home Guarantee
The First Home Guarantee is a federal government scheme that allows eligible buyers to purchase with just a 5% deposit, with the government guaranteeing the remaining 15% of the standard 20% threshold. This means the lender treats your loan as if you have a 20% deposit, so no LMI is payable.
As of 1 October 2025, the scheme was significantly expanded:
- No income caps – the previous thresholds of $125,000 for individuals and $200,000 for couples have been removed entirely
- No cap on places – unlike previous years where annual places were limited, the scheme now has unlimited places
- Higher property price caps for Queensland – Brisbane, Gold Coast, and Sunshine Coast: up to $1,000,000. The rest of QLD: up to $700,000
This is one of the most significant expansions of first home buyer assistance in Australian history, and it means far more Queenslanders now qualify than before.
2% Deposit via the Family Home Guarantee
The Family Home Guarantee is designed for eligible single parents or single legal guardians of at least one dependent. It allows purchase with as little as a 2% deposit, with the government guaranteeing up to 18% of the property’s value, again, with no LMI payable. Speak to a Stanford Financial broker to confirm your eligibility.
No Deposit via a Guarantor Loan
Some buyers are able to purchase with no deposit at all using a guarantor home loan, where a family member, typically a parent, uses the equity in their own property to guarantee part of your loan. This can allow you to borrow up to 100% of the purchase price in some cases. The guarantor’s property is used as additional security, and once you’ve built sufficient equity in your own home, the guarantee can be released.
This approach works well for first home buyers who have strong income but haven’t yet had time to save a full deposit. Our first home loan page covers this in more detail, and our team can walk you through whether it’s appropriate for your family’s circumstances.
Stanford Financial
QLD low-deposit schemes: how to buy with less than 20%
Can schemes be stacked? Yes — First Home Guarantee (no LMI) + FHOG $30,000 (contract before 30 June 2026) + QLD stamp duty exemption (new home) can be applied simultaneously, reducing your effective upfront cash to as little as $5,000 on a $700,000 new build.
QLD-Specific Help: Grants and Concessions in 2026
Queensland is one of the most generous states in Australia when it comes to first home buyer assistance. Here is a current summary of what’s available as at March 2026.
Queensland First Home Owner Grant (FHOG)
The Queensland Government currently offers a $30,000 First Home Owner Grant to eligible buyers purchasing or building a new home. Key conditions:
- Amount: $30,000 for contracts signed between 20 November 2023 and 30 June 2026. After 30 June 2026, the grant reverts to $15,000
- Property type: New homes only – the property must never have been previously occupied or sold as a place of residence. This includes house and land packages, off-the-plan purchases, and owner-built homes
- Price cap: Total value of the home (including land and contract variations) must be under $750,000
- Residency: You must move in within 12 months of settlement or construction completion and live there as your principal place of residence for at least six months
- Eligibility: At least one applicant must be an Australian citizen or permanent resident aged 18 or over, and must be a genuine first home buyer who has not previously owned residential property in Australia
Important: The $30,000 grant applies only to new homes. If you’re buying an established property, you won’t be eligible for the FHOG — but you may still qualify for significant stamp duty concessions, and the First Home Guarantee applies to both new and established purchases.
Stamp Duty (Transfer Duty) Concessions for First Home Buyers
Queensland’s stamp duty concessions for first home buyers were significantly improved from 1 May 2025:
- New homes and vacant land: Zero stamp duty with no property value cap. This applies to new builds, house and land packages, and vacant land where you intend to build your first home
- Established homes up to $709,999: A full concession of $17,350 applies, which effectively reduces stamp duty to nil for most properties in this range
- Established homes $710,000 to $800,000: A partial concession applies on a sliding scale — you pay some stamp duty, but less than the standard rate
- Established homes $800,000 and above: No concession applies; standard stamp duty rates are payable
First Home Super Saver Scheme (FHSS)
The federal First Home Super Saver Scheme allows you to make voluntary contributions into your superannuation and then withdraw up to $50,000 of those contributions (plus associated earnings) for a home deposit. Contributions are taxed at 15% going in, rather than your marginal income tax rate, making it a tax-effective way to build your deposit. The FHSS is available for both new and established homes and can be combined with the FHOG and First Home Guarantee.
At a Glance: Key Schemes for QLD First Home Buyers
| Scheme | What It Offers | Property Cap (QLD) | Key Condition |
| QLD First Home Owner Grant | $30,000 cash grant | Under $750,000 | New homes only; contracts before 30 June 2026 |
| First Home Guarantee | Buy with 5% deposit, no LMI | $1M (Brisbane/GC/SC); $700K (rest of QLD) | New or established; no income cap |
| Family Home Guarantee | Buy with 2% deposit, no LMI | Same as FHBG | Single parents/guardians only |
| Stamp Duty (new home) | Zero transfer duty | No cap | New homes and vacant land from 1 May 2025 |
| Stamp Duty (established) | Up to $17,350 concession | Up to $709,999 (full); $800,000 (partial) | First home buyers only |
| First Home Super Saver | Withdraw up to $50,000 from super | No cap | Voluntary super contributions only |
How to Stack Government Assistance: A Real QLD Example
One of the most powerful things about the current Queensland assistance landscape is that many of these schemes can be used together. Here is an example showing how a first home buyer purchasing a new home in the Springfield/Ipswich corridor could structure their purchase.
Scenario: First home buyer purchasing a new house and land package for $620,000 in Springfield Central, QLD, using the First Home Guarantee and applying for the FHOG.
| Item | Estimated Amount (on $620,000 new build) |
| 5% deposit required (First Home Guarantee) | $31,000 |
| Stamp duty on new home | $0 (full exemption from 1 May 2025) |
| Queensland First Home Owner Grant (applied at settlement) | −$30,000 |
| Conveyancing fees (estimate) | $1,500 – $2,000 |
| Building and pest inspection | $500 – $700 |
| Loan application / lender fees (estimate) | $0 – $600 |
| LMI cost | $0 (waived via First Home Guarantee) |
| Total estimated net cash needed beyond grant offset | ~$3,000 – $5,000 |
In this scenario, the $30,000 grant effectively offsets almost the entire 5% deposit, meaning a buyer in this price range could enter the market with very limited cash savings beyond standard purchase costs. Stanford Financial is based in Springfield Central and regularly helps buyers in this corridor navigate exactly this kind of purchase structure.
The grant is typically paid at settlement by your lender on your behalf through the Queensland Revenue Office. Your broker and conveyancer will coordinate this process – you don’t need to handle it separately. If you’re in Ipswich or surrounds, our Ipswich mortgage brokers can help you through the same process.
Beyond the Deposit: Other Upfront Costs to Budget For
Your deposit is the largest single upfront cost, but it’s not the only one. Here is a full picture of what you’ll need to budget for when buying in Queensland:
- Stamp duty (transfer duty): Nil for eligible first home buyers purchasing new homes or land from 1 May 2025. Concessions apply to established homes under $800,000
- Conveyancing fees: Typically $1,200 to $2,500 depending on complexity. Stanford Legal, part of the Stanford Group, provides competitive conveyancing services and works alongside Stanford Financial to streamline the process for our clients
- Building and pest inspection: Around $400 to $800. Non-negotiable for established properties; important even for new builds approaching practical completion
- Loan application fees: Varies by lender. Many lenders charge nil for standard applications, though some charge $300 to $600
- Lenders Mortgage Insurance (LMI): Nil if you qualify for the First Home Guarantee or have a 20% deposit. Otherwise potentially $10,000 to $40,000+ depending on purchase price and LVR. See our low deposit home loans page for more on how LMI works
- Moving costs: Typically $500 to $2,500 depending on distance and volume
- Utility connection and setup costs: Budget $200 to $500 for connection fees across electricity, gas, internet, and water
As a general guide, plan to have your deposit plus an additional 3% to 5% of the purchase price available to cover purchase costs, unless stamp duty is waived in your situation.
Do I Need ‘Genuine Savings’?
Many lenders require that a portion of your deposit comes from what they call ‘genuine savings’ — that is, money you have accumulated yourself over a period of time (typically three to six months). This demonstrates that you have the financial discipline to service a home loan.
Genuine savings typically includes:
- Regular deposits into a savings account over at least three months
- Superannuation contributions under the First Home Super Saver Scheme
- Term deposits or managed investment accounts
The following are generally not considered genuine savings by most lenders:
- A lump sum gift from a parent or family member (though gifted funds can supplement genuine savings)
- Tax refunds received as a lump sum
- The First Home Owner Grant itself
If you don’t yet meet a lender’s genuine savings requirement, a Stanford Financial broker can help identify which lenders have more flexible policies or how to structure your savings over the coming months to maximise your eligibility.
Stanford Financial
What counts as your deposit? Genuine savings vs gifted funds
Lenders treat different deposit sources differently — especially at higher LVRs
How Much Should I Aim to Save?
The honest answer is: it depends on your strategy. Here is a simple framework:
- If you’re eligible for the First Home Guarantee: Aim for 5% of the purchase price plus purchase costs (minus any grant). For a $600,000 home, that’s approximately $30,000 in deposit plus $3,000 to $5,000 in costs. The $30,000 FHOG offsets much of this if buying new
- If you want to avoid LMI without a government scheme: Save 20% of the purchase price plus costs. For a $600,000 home, that’s $120,000 in deposit plus $5,000 to $10,000 in costs
- If you’re using a guarantor: You may need little to no deposit, but you’ll still need cash for purchase costs, typically $3,000 to $8,000 depending on the purchase price and whether stamp duty applies
These are general guides. Your specific requirements will depend on the property, the lender, and your individual circumstances. Whether you’re buying your first home, an investment property, or looking to refinance an existing loan, a free assessment with Stanford Financial will give you a clear picture of exactly what you need based on your actual situation.
Frequently Asked Questions
Can I use the Queensland First Home Owner Grant as my deposit?
The Queensland Government does not recommend relying on the grant as your deposit. The timing matters: the grant is typically paid at settlement, whereas your deposit is required at contract signing or exchange. Some lenders may factor in the incoming grant when assessing your overall position, but you will generally need genuine savings available upfront. Speak to a Stanford Financial broker about how to sequence your funds correctly.
Can I buy an established home with a 5% deposit?
Yes, the First Home Guarantee applies to both new and established properties. You do not need to buy a new home to access the 5% deposit scheme – though only new home buyers are eligible for the $30,000 First Home Owner Grant. An established home purchase with a 5% deposit through the guarantee would still attract zero or reduced stamp duty if the property falls within the relevant concession thresholds.
Can I use my superannuation for a deposit?
Not directly. You cannot access your regular superannuation contributions for a home deposit. However, if you make voluntary contributions to your super, you can withdraw up to $50,000 of those voluntary contributions under the First Home Super Saver Scheme. This is separate from your compulsory employer contributions, which remain locked until retirement.
What if I’ve previously owned an investment property?
If you have previously owned an investment property but never lived in it, you may still be eligible for the First Home Owner Grant and stamp duty concessions in Queensland. However, the rules are specific: you must not have previously received a First Home Owner Grant in any Australian state or territory, and you must not have owned a property that you lived in. This is an area where getting advice from a broker and conveyancer before you apply is important to avoid inadvertently disqualifying yourself. Our investment loan page has further information on how investment property ownership is treated by lenders.
How does a bad credit history affect my deposit requirements?
If you have adverse credit history – defaults, missed payments, or a prior bankruptcy – most lenders will require a larger deposit, often 20% or more, regardless of LMI considerations. Some specialist lenders will consider applications with blemished credit at a higher LVR, but the rate and fee structure will differ. Our bad credit home loans page explains what options are available, and a broker can assess your specific credit position before you apply.
How long does it take to save a deposit?
At a savings rate of $1,000 per month into a high-interest savings account, saving a 5% deposit on a $600,000 home would take approximately two and a half years. Saving a 20% deposit at the same rate would take around ten years. This is one of the main reasons government schemes exist — to allow buyers to enter the market sooner rather than saving while prices move beyond reach. Understanding your full borrowing capacity alongside your deposit target gives you a complete picture of where you stand.
Stanford Financial
Total cash needed to buy a home in QLD: full upfront cost breakdown
20% deposit · existing home · non-first buyer · includes all upfront costs · April 2026
Stamp duty based on QLD standard rates for existing residential property, non-first buyer. Legal/conveyancing costs vary by firm. All figures are estimates — request a personalised upfront cost summary from your broker before exchanging contracts.
How Stanford Financial Can Help
Working out how much deposit you need is only the first step. Knowing which schemes you actually qualify for, how to structure your application to maximise your position, and which lenders will give you the best outcome at your deposit level — this is where a mortgage broker’s expertise makes a tangible difference.
At Stanford Financial, our brokers are based in Springfield Central and work with clients across Queensland and Australia wide. We have access to over 50 lenders and will assess your full picture at no cost to you, with no obligation to proceed.
If you’re planning to buy in the next six to eighteen months, the earlier you book an assessment, the better – there are practical steps you can take now to maximise your deposit, protect your credit file, and position yourself for the strongest possible application when the time comes. You can read more about how we work on our process page.
Ready to find out exactly what you need? Book a free, no-obligation assessment with Stanford Financial today. Call us on 0483 980 002 or contact us online.
Reviewed and Verified
All content published on this website has been reviewed and verified by Steven Beach, Lending Director at Stanford Financial. With over 20 years of experience in finance and lending, Steve ensures that every article, guide, and resource accurately reflects current lending practices, lender policies, and the real-world outcomes he sees working with Australian borrowers every day. His hands-on experience across home loans, investment lending, and specialist finance means the information you read here is grounded in genuine industry expertise – not just theory.
