If you’re wondering how much deposit you need to buy a house in QLD, the answer depends on your property price, borrowing capacity and eligibility for government assistance. You may need a 20% deposit, but some buyers can purchase with just 5% or even 2% under eligible schemes.
This guide explains the deposit amounts, upfront costs and lending rules you need to understand before purchasing property in Queensland. You’ll also learn how the Home Guarantee Scheme, Queensland grants and transfer duty concessions could reduce your savings target.
House Deopsit QLD Key Takeaways
| Key Point | What You Need to Know |
|---|---|
| Minimum deposit | Some eligible buyers can purchase with a 5% deposit or qualify for a 2% deposit option through specific government programs. |
| 20% deposit | A 20% deposit generally helps you avoid Lenders Mortgage Insurance (LMI) under standard lending arrangements. |
| Loan-to-value ratio | Your loan-to-value ratio (LVR) affects your lender’s risk assessment and may influence insurance costs and lending requirements. |
| 5% Deposit Scheme | Eligible first home buyers may qualify to purchase with a 5% deposit without paying LMI, subject to scheme and lender requirements. |
| Queensland low-deposit programs | Boost to Buy and the Queensland Housing Finance Loan offer potential pathways for eligible buyers who have limited savings. |
| First Home Owner Grant | Eligible buyers purchasing qualifying new homes may receive Queensland’s $30,000 grant, subject to the current eligibility rules. |
| Transfer duty concessions | Eligible first home buyers may receive full or partial transfer duty concessions, including a full concession on qualifying new homes without a property value cap. |
| Upfront buying costs | You need to budget for conveyancing, inspections, registration fees, insurance and moving expenses in addition to your deposit. |
| Genuine savings | Some lenders require evidence of accumulated savings, particularly for certain low-deposit home loan applications. |
| Choosing your savings target | Your ideal deposit depends on the property price, borrowing capacity, available assistance and the cash reserve you want to retain after settlement. |
Step 1: Understand How Much Deposit You Need
In Queensland, lenders generally prefer a 20% deposit, although this is not a universal requirement. Some lenders accept smaller deposits, depending on your financial position and the property you intend to purchase.
Your deposit covers the portion of the purchase price that you do not borrow.
Why Lenders Prefer a 20% Deposit
A larger deposit reduces the lender’s exposure if you cannot repay your loan. It also reduces your borrowing requirements and can improve your application.
There are three main advantages to saving 20%:
- Lower borrowing costs: You borrow less money, which generally reduces the interest you pay over the loan term.
- Potentially no LMI: You can usually avoid Lenders Mortgage Insurance when your loan-to-value ratio is 80% or lower, subject to lender policy.
- Greater financial flexibility: A larger deposit leaves you with a smaller loan and potentially more room in your budget.
Nevertheless, waiting until you save 20% may not suit every buyer. Property prices, rent and living expenses can change while you build your savings.
Read more: mortgage deposit calculator
Step 2: Understand Your Loan-To-Value Ratio
Your loan to value ratio (LVR) compares your loan amount with the lender’s accepted property value.
For example, borrowing $720,000 against an $800,000 property produces an 90% LVR. A $640,000 loan against the same property produces an 80% LVR.
Lenders use this ratio to assess risk and determine applicable lending requirements.
A lower LVR generally means less risk for the lender. Conversely, a higher LVR can lead to additional insurance costs or stricter lending conditions.
Importantly, lenders may assess the property at less than your agreed purchase price. If that happens, you might need additional funds to complete the purchase.
Step 3: Explore Buying With Less Than 20%
You may not need to save a traditional 20% deposit before entering Queensland’s property market. Several lending options and government schemes can reduce your initial deposit requirement.
Buying With a 10% Deposit
A 10% deposit can provide a practical middle ground between saving 20% and using a low-deposit scheme.
For an $800,000 property, you would need $80,000, excluding purchase costs. You would then apply for a $720,000 home loan.
However, you may need to pay LMI because your LVR exceeds 80%. Some lenders offer different arrangements for eligible borrowers, so the actual cost depends on your circumstances.
Read more: What is Lenders mortgage insurance?
Buying With a 5% Deposit Through the Home Guarantee Scheme
The Australian Government’s 5% Deposit Scheme, previously known as the Home Guarantee Scheme, helps eligible buyers purchase a home with a smaller deposit.
From 1 October 2025, the scheme removed its income caps and expanded availability for eligible first home buyers. It also increased property price caps in relevant locations.
Under the scheme, eligible first home buyers can purchase with a 5% deposit. Eligible single parents or legal guardians may qualify with a 2% deposit under the relevant pathway.
The government guarantee can help eligible participants avoid LMI. However, you must still meet the participating lender’s credit assessment and other scheme requirements.
Queensland property price caps vary by location. Check the current limits with Housing Australia before relying on the scheme.
Buying With a 2% Deposit Through Queensland Government Support
Queensland offers two distinct low-deposit options worth investigating.
Boost to Buy is a shared equity scheme for eligible first home buyers. The Queensland Government can contribute up to 30% of a new home’s price or 25% for an existing home, subject to the scheme’s conditions.
Eligible applicants need at least a 2% deposit and must meet income and property price requirements. The maximum eligible purchase price is $1 million. Places are limited, and the government retains an equity interest in your property.
The Queensland Housing Finance Loan is another option for eligible buyers who can afford repayments but struggle to save a larger deposit. It can support eligible purchases with a deposit starting at 2%, although your borrowing capacity may require more.
Unlike shared equity, this is a government-provided home loan. Eligibility requirements and income limits apply. See the Queensland Housing Finance Loan eligibility details.
Using a Guarantor Loan
A family guarantor may help you purchase with a smaller personal deposit. Usually, an eligible family member offers equity in their property as additional security for your loan.
This arrangement may help you avoid LMI or borrow a larger amount, depending on the lender’s policy.
However, a guarantor accepts significant financial risk. If you cannot repay your loan, the lender may seek recovery from the guarantor’s property.
Both parties should understand the legal obligations before proceeding. Independent legal advice can help the guarantor assess the risks.
Step 4: Claim Queensland’s First Home Owner Grant
The Queensland First Home Owner Grant helps eligible first-time buyers purchase or build a new home.
As of October 2026, the grant is $30,000 for eligible transactions. The grant was extended beyond its previously scheduled June 2026 end date. The eligible home must generally have a total value below $750,000, including applicable contract variations.
The grant is not available for every property purchase. Established homes generally do not qualify unless they meet the relevant new-home criteria.
You must also meet applicant eligibility and occupancy requirements.
Can You Use the Grant as Your Deposit?
The grant can contribute towards eligible purchase or building expenses, depending on when it is paid and your lender’s requirements.
However, you should not assume the grant replaces your required deposit. For example, the Boost to Buy scheme specifically requires a 2% deposit from demonstrated savings and excludes the First Home Owner Grant from that amount.
Therefore, confirm the timing of your grant payment and the lender’s deposit rules before including it in your savings plan.
Step 5: Reduce Your Upfront Costs With Transfer Duty Concessions
Transfer duty, commonly called stamp duty, can significantly increase the amount you need to save. Queensland provides concessions that may reduce or eliminate this expense for eligible buyers.
The applicable concession depends on whether you’re buying an established home, a new home or vacant land.
First Home Concession for Established Homes
Eligible first home buyers purchasing an established home may qualify for Queensland’s first home concession.
For contracts entered into from 9 June 2024, eligible buyers pay no transfer duty on homes valued at $700,000 or less. A partial concession applies to homes valued below $800,000. No first home concession applies at $800,000 or above.
For example, purchasing an established property for $800,000 would not qualify for the first home concession. However, you may still qualify for the standard home concession if you meet its requirements.
First Home (New Home) Concession
Queensland introduced a major change from 1 May 2025. Eligible first home buyers purchasing a new home can receive a full transfer duty concession, with no cap on the home’s value.
This means eligible buyers can pay no transfer duty on a qualifying new home worth $800,000 or $900,000. The concession also applies to eligible substantially renovated homes.
The rules distinguish residential land from additional land that does not form part of the residence or serve residential purposes. Other eligibility and occupancy requirements apply.
First Home Vacant Land Concession
If you purchase vacant land to build your first home, you may qualify for a full transfer duty concession.
For eligible agreements entered into from 1 May 2025, there is no value cap on qualifying residential vacant land. However, additional land outside the eligible residential use may attract duty.
You must meet the relevant requirements, including the intention to build and occupy your first home.
Important Eligibility Changes From August 2026
Queensland changed the eligibility rules for home-related transfer duty concessions from 1 August 2026. For transactions entered into from that date, applicants generally must be Australian citizens, permanent residents or specified foreign retirees.
This change matters if you’re purchasing property in Queensland but do not hold one of these eligible statuses. Check the current rules before calculating your savings target.
Read more: Stamp Duty Calculator Queensland
Step 6: Budget for Other Upfront Buying Costs
Your deposit is only one part of the money you need before settlement. You must also allow for transaction expenses, inspections and other costs associated with purchasing a property.
| Expense | What You Should Budget For |
| Conveyancing and legal fees | A conveyancer or solicitor reviews the contract, handles settlement and checks legal requirements. |
| Building and pest inspections | These inspections help identify structural defects, termites and other potential problems before purchase. |
| Loan application and settlement fees | Some lenders charge fees to establish, document or settle your loan. |
| Registration fees | Queensland charges government fees for registering relevant property transfers and mortgages. |
| Insurance | Your lender may require suitable building insurance before settlement, depending on the property and loan arrangements. |
| Moving and utility costs | Moving expenses, connection charges and initial household purchases can affect your available cash. |
| Emergency savings | Keeping spare funds helps you manage unexpected repairs or temporary income disruptions after settlement. |
The exact amounts vary by property, provider and transaction. Obtain quotes and confirm which expenses apply before making an offer.
Read more: Understanding the hidden costs of buying a house in Australia
Step 7: Understand Genuine Savings Requirements
Genuine savings are funds you’ve accumulated and held over time, demonstrating your ability to manage money responsibly.
Some lenders require evidence of genuine savings, particularly when you apply for a high-LVR loan. Requirements vary between lenders and loan products.
Examples of funds that may qualify include:
- Regular savings: Consistent deposits into a savings account can demonstrate that you’ve developed a savings habit.
- Term deposits: Funds held in an eligible term deposit may demonstrate accumulated savings, depending on the lender’s policy.
- Shares or investments: Some lenders may accept eligible investments as evidence, subject to documentation and policy requirements.
A lender may treat gifts, inheritance or borrowed funds differently from accumulated savings. These funds can sometimes contribute to your purchase, but their acceptance depends on the loan criteria.
Keep bank statements and supporting documents that show where your deposit came from. If you receive a family gift, obtain the documentation your lender requires.
Step 8: Calculate Your Realistic Deposit Target
Before setting a savings goal, consider your preferred property price, available savings and expected buying costs. Then assess your borrowing capacity and any assistance you may qualify for.
A useful approach is to work backwards from the property you want to purchase.
- Choose a realistic property price: Research local prices to establish a purchase budget that suits your income and needs.
- Calculate the deposit: Apply your intended deposit percentage to the purchase price to determine the initial amount required.
- Estimate buying costs: Include applicable duty, legal fees, inspections and other expenses that you must pay yourself.
- Check available assistance: Determine whether you qualify for a grant, concession, government guarantee or low-deposit loan.
- Assess borrowing capacity: Ask a lender to evaluate your income, expenses, debts and ability to manage repayments.
- Keep a cash reserve: Retain money for unexpected expenses rather than using every available dollar at settlement.
For example, a 20% deposit on a $900,000 property is $180,000. A 5% deposit is $45,000, but the lower deposit may involve different lending requirements.
The best savings target is therefore not always the smallest deposit. It is the amount that allows you to buy a suitable property while managing the loan and associated costs.
Conclusion: Choose a Deposit You Can Afford
The answer to how much deposit do I need to buy a house in QLD depends on your financial circumstances, the property price and the lending options available to you.
A 20% deposit can reduce borrowing costs and help you avoid LMI. However, eligible buyers may enter the market with 5% or even 2% through government-supported options.
Queensland’s grants and transfer duty concessions can also reduce your upfront expenses. In particular, eligible first home buyers purchasing new homes may benefit from a full transfer duty concession without a property value cap.
Ultimately, focus on more than your deposit percentage. You need a manageable mortgage, enough money for buying costs and a financial buffer after settlement. A realistic savings plan will help you purchase a property without placing unnecessary pressure on your finances.
Disclaimer: This article provides general information only and does not constitute personal financial, legal or tax advice. Government schemes, eligibility rules and lender policies can change. Verify current requirements with the relevant authorities and obtain advice suited to your circumstances before making financial decisions.
Frequently Asked Questions
1. How Much Deposit Do I Need to Buy a House in QLD?
You may need 20% of the purchase price to avoid LMI under standard lending arrangements. However, some lenders accept smaller deposits, and eligible buyers may qualify for government-supported options starting at 5% or 2%.
2. Can I Buy a House in Queensland With a 5% Deposit?
Yes. Eligible first home buyers may purchase with a 5% deposit through the Australian Government’s 5% Deposit Scheme. You must meet the scheme’s requirements and obtain approval from a participating lender.
3. Do I Need a 20% Deposit to Avoid LMI?
Not always. Some government schemes and lender-specific arrangements can help eligible borrowers avoid LMI with a smaller deposit. Otherwise, you may need to pay LMI when your LVR exceeds 80%.
4. Can I Use the First Home Owner Grant as My Deposit?
The grant may contribute towards eligible purchase expenses, depending on its payment timing and your lender’s rules. However, some schemes require a separate deposit from demonstrated savings and exclude the grant from that requirement.
5. What Is the Minimum Deposit for a First Home Buyer in QLD?
There is no single minimum deposit for every buyer. Eligible participants may qualify for a 5% deposit under the national scheme or a 2% deposit through certain Queensland government programs.
6. Do First Home Buyers Pay Stamp Duty in Queensland?
Eligible first home buyers purchasing established homes may receive a partial or full concession, depending on the property’s value. Eligible buyers purchasing new homes or qualifying vacant land may receive a full concession without a value cap.
7. What Is Genuine Savings for a Home Loan?
Genuine savings are funds accumulated over time that demonstrate your ability to save. Some lenders require evidence of these savings for low-deposit applications, although requirements differ between lenders and loan products.
8. How Much Deposit Do I Need for an $800,000 House in QLD?
A 5% deposit is $40,000, a 10% deposit is $80,000, and a 20% deposit is $160,000. You must also budget for applicable buying costs and confirm your borrowing capacity.
