An original report by Low Deposit Homes · June 2026 · By Chaice Paterson, Founder
Most first home buyers think the risk of waiting is just higher prices. The bigger, hidden risk is the price cap: the level above which the savings that make a new build affordable simply switch off. This short report explains where the real cost of waiting comes from.
The real deadline is the price cap, not a date
The 5% Deposit Scheme only applies under a price cap — about $1,000,000 in metro Queensland, $700,000 regional, and about $950,000 in Melbourne and Geelong. Stay under it and a first home buyer pays $0 stamp duty and no LMI, which is what brings a $1,000,000 Queensland new build down to roughly $54,500 to get into. Cross the cap and those savings disappear, pushing the cash needed toward $122,000 and beyond. As growth-corridor prices rise, packages that fit under the cap today can quietly drift over it — and that is the genuine cost of waiting.
The three costs of waiting
1. The price cap. If rising prices push your target package over the 5% scheme cap, the cost to get in jumps sharply — the single biggest reason not to drift.
2. The rent. Every month spent waiting is rent paid to a landlord, building no equity for you.
3. The grant timing. Queensland’s $30,000 First Home Owner Grant is scheduled to halve to $15,000 for contracts signed from 30 June 2026 — though, honestly, its $750,000 cap means most Queensland new-build buyers were already relying on the stamp-duty and LMI savings rather than the grant. Victoria’s $10,000 grant is usable and worth claiming before any future change.
Who this matters most for
If you’re a first home buyer who can access a 5% deposit and is considering a new build, the combination on offer right now — a 5% deposit with no LMI and $0 stamp duty — is as strong an entry into home ownership as there has been in years. The risk isn’t that the offer disappears overnight; it’s that rising prices quietly carry your package over the cap. That’s why running your numbers now beats waiting.
Methodology & notes
The $54,500 / $122,000 Queensland figures are Low Deposit Homes’ standard worked examples at a $1,000,000 price point (new build with structuring vs established). Price caps reflect the Home Guarantee Scheme as at June 2026; grant amounts and the 30 June 2026 Queensland change reflect current Queensland settings (Victoria’s $10,000 grant is unaffected). Rent and price-growth costs are general and vary by location and market conditions. This report is general information, not financial or credit advice.
Frequently asked questions
What does it cost a first home buyer to wait in 2026?
Two things, mainly. First, the rent you keep paying while you wait — money that builds your landlord’s equity, not yours. Second, price growth: in the major growth corridors, new-build prices have generally trended upward, and if a package drifts above the 5% scheme’s price cap (~$1,000,000 in metro Queensland, ~$950,000 in Melbourne and Geelong) the cost to get in jumps sharply, because stamp duty and LMI return.
Why does the $1 million price cap matter so much?
Because it’s where the savings switch off. Under the cap, a Queensland first home buyer gets into a $1,000,000 new build for about $54,500 with $0 stamp duty and no LMI. Above the cap, the 5% scheme no longer applies and the cash needed can climb toward $122,000–$149,000 once stamp duty and LMI come back. As corridor prices rise, packages that fit under the cap today may not next year — which is the real cost of waiting.
Is the Queensland First Home Owner Grant changing?
Queensland’s $30,000 First Home Owner Grant is scheduled to halve to $15,000 for contracts signed on or after 30 June 2026. In practice, though, the grant has a $750,000 price cap that most new house-and-land packages exceed, so for the typical Queensland buyer it often isn’t the deciding factor. The bigger Queensland saving is the $0 stamp duty and no LMI — which don’t have an expiry date, but do depend on staying under the 5% scheme’s price cap.
What’s the single most important deadline for a first home buyer?
The price cap, not a calendar date. Staying under the 5% scheme’s cap is what keeps a Queensland new build at about $54,500 to get into rather than $122,000+. Because prices in the growth corridors tend to rise, the practical advice is to run your numbers while the packages that suit you still sit under the cap.
Know where you stand before prices move
If buying in the next year is even a possibility, it’s worth knowing exactly where you sit against the cap. It’s free, with no obligation.
See if you qualify →Read the Deposit Report →
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General information only — not financial or credit advice. Figures current as at June 2026 and subject to change; eligibility depends on individual circumstances. Low Deposit Homes operates under Winning Homes Australia Pty Ltd.