By Chaice Paterson, Founder, Low Deposit Homes
For most first home buyers in 2026, yes — because of one number. A $1M new build in Queensland can be entered for around $54,500 cash, versus roughly $122,000 to buy an established home at the same price with no grants. Same 5% deposit on both; the new build avoids the Lenders Mortgage Insurance and stamp duty. That ~$67,500 gap is the case for a package. But it’s only a good idea if the schemes line up for your situation.
The case for: the deposit gap is real
A new build under the 5% Deposit Scheme avoids LMI, and QLD charges $0 stamp duty on new builds (no price cap). On a $1M home that’s about $122,000 to enter an established home versus ~$54,500 for the new build. In Victoria, entry on a typical package is around $37,500. You’re not putting down less deposit — it’s 5% either way — you’re avoiding the costs stacked on top.
The 2026 rules that change the answer
- 5% Deposit Scheme: No income cap since 1 October 2025. Price caps ~$1M metro Brisbane/Gold Coast/Sunshine Coast, $700k regional QLD, ~$950k Melbourne/Geelong, $1.5M Sydney. Citizens and permanent residents. No LMI.
- QLD First Home Owner Grant: $30,000 with a $750,000 cap — most packages exceed it. It’s locked in at $30,000 until mid-2030 (2026–27 Queensland Budget).
- VIC First Home Owner Grant: $10,000; stamp duty exempt to $600k, concession to $750k.
- Help to Buy: 2% deposit shared equity, citizens only, income caps $100k single / $160k couple — can’t be combined with the 5% scheme.
- First Home Super Saver: Up to $50,000 of voluntary super, $15,000 per financial year.
When a package is a good idea
- You’ve got around $54,500 (QLD) or $37,500 (VIC) and want to stop renting now.
- You qualify for the 5% scheme — including as a permanent resident.
- You’d rather avoid LMI and stamp duty than chase a cheaper-looking established home that costs more to enter.
- You don’t want to project-manage a build across two contracts yourself.
When to think twice
- Your target price sits above the scheme cap for your area.
- You’re banking on the $30,000 QLD grant but your package is over the $750,000 cap.
- You qualify for Help to Buy and shared equity suits you better (remember you can’t stack it with the 5% scheme).
FAQ
Are house and land packages worth it for first home buyers in 2026? For most, yes — a $1M QLD new build enters for ~$54,500 versus ~$122,000 for an established home at the same price. Same 5% deposit; the new build avoids LMI and stamp duty.
What’s changing for first home buyer grants in 2026? The QLD First Home Owner Grant halves from $30,000 to $15,000 for contracts signed from 30 June 2026, and keeps its $750,000 cap. The 5% Deposit Scheme has had no income cap since 1 October 2025 and is open to permanent residents.
Can permanent residents buy a house and land package with a low deposit in 2026? Yes. Since 1 October 2025 the 5% Deposit Scheme is open to Australian citizens and permanent residents, with no income cap.
Should I use Help to Buy or the 5% Deposit Scheme? They can’t be combined. Help to Buy is a 2% deposit shared-equity scheme for citizens only with income caps; the 5% scheme has no income cap and allows permanent residents.
Do I have to pay LMI on a low deposit house and land package? Not under the 5% Deposit Scheme — it waives the Lenders Mortgage Insurance you’d normally pay with a deposit under 20%. That waiver is a big part of the ~$67,500 gap versus an established home.
General information only, current as at June 2026 — not financial or credit advice. Eligibility, caps and dates depend on your circumstances and can change. Low Deposit Homes is not a lender or mortgage broker, and is free to buyers.