An original report by Low Deposit Homes · Published June 2026 · By Chaice Paterson, Founder
The single biggest myth in Australian property is that you need a huge deposit to buy your first home. The truth: on a typical $1,000,000 Queensland new build, a first home buyer needs about $54,500 — not the $122,000 an established home of the same price would demand. That $67,500 difference is the whole game, and this report sets out exactly where it comes from.
The headline numbers
New build vs established: the real cost to get in (2026)
Same headline price, very different cash to get through the door. Figures are typical new-build house-and-land packages in the major growth corridors as at June 2026.
| Scenario | Price | Real deposit needed | Why |
|---|---|---|---|
| QLD — new build (with LDH structuring) | $1,000,000 | ~$54,500 | $0 stamp duty, no LMI |
| QLD — established home | $1,000,000 | ~$122,000 | Full stamp duty + LMI |
| QLD saving (new vs established) | — | ~$67,500 | The reason new builds win |
| VIC — new build (with LDH structuring) | $700,000–$750,000 | ~$37,500 | $0/reduced duty, no LMI, $10k FHOG usable |
| VIC — established home | $750,000 | ~$90,000+ | Full duty + LMI |
| VIC saving (new vs established) | — | ~$52,500+ | — |
Finding 1 — The saving is about $67,500, and it comes from structure, not luck
A $1,000,000 established home in Queensland needs roughly $122,000 to get into once you add stamp duty, Lenders Mortgage Insurance and costs. The same $1,000,000 as a new build, structured properly, needs about $54,500 — because a first home buyer pays $0 stamp duty on a new home (a saving of around $30,850 at the owner-occupier duty rate on a $1M purchase) and pays no LMI under the 5% Deposit Scheme. Same price, about $67,500 less cash. For most renters, that gap is the difference between owning now and waiting five more years.
Finding 2 — October 2025 quietly removed the biggest barriers
In October 2025 the Government removed the income caps and the annual place limits on the 5% Deposit Scheme. Anyone who looked into buying a year ago, was told they earned too much or that places had run out, and walked away — should look again. Households up to around no income cap are now eligible; only the property price caps remain (about $1,000,000 in Brisbane, the Gold Coast and Sunshine Coast, $700,000 regional, and about $950,000 in Melbourne and Geelong).
Finding 3 — The grant story is different in each state
Victoria’s $10,000 First Home Owner Grant is genuinely usable at Victorian price points. In Queensland, the $30,000 grant exists but carries a $750,000 price cap, and most new house-and-land packages sit above it — so for the typical Queensland buyer the grant is often not the lever. The Queensland advantage is the structure itself: $0 stamp duty and no LMI. It’s an honest point worth making, because plenty of marketing overstates the Queensland grant.
Finding 4 — Price caps create the real deadline
The number that actually bites is the price cap, not a grant date. Stay under $1,000,000 in metro Queensland and the 5% Deposit Scheme keeps the deposit near $54,500; cross the cap and the costs jump sharply because stamp duty and LMI return. As corridor prices rise, packages that fit under the cap today may not next year — which is the genuine case for running your numbers sooner rather than later.
Finding 5 — Where first home buyers are actually buying
Based on Low Deposit Homes client data, around 88% of the first home buyers we help are buying in Queensland and around 12% in Victoria. Activity concentrates in the major growth corridors — in South East Queensland, the western and northern corridors (Ipswich, Logan, Greater Flagstone and the northern growth areas) lead, because that’s where new house-and-land packages sit inside the 5% scheme’s price cap.
Methodology & data notes
Deposit, saving and price-cap figures are based on Low Deposit Homes’ own deal-structuring data and the Australian Government Home Guarantee Scheme, Queensland and Victorian first home buyer grant and stamp-duty settings as at June 2026, on typical new-build house-and-land package pricing. The $54,500 / $122,000 / $67,500 Queensland figures and the $37,500 / $90,000+ / $52,500+ Victorian figures are LDH’s standard worked examples at the stated price points; individual numbers vary with price, lender and circumstances. The state and corridor split is directional, drawn from LDH’s own client base. This report is general information, not financial or credit advice.
Frequently asked questions
How much deposit do you really need to buy a first home in Australia in 2026?
Far less than the traditional 20%, and far less than the cost of an established home. On a typical $1,000,000 Queensland new-build package, a first home buyer structured by Low Deposit Homes needs about $54,500 — compared with roughly $122,000 for an established home of the same value, because a new build attracts no stamp duty and no Lenders Mortgage Insurance under the 5% Deposit Scheme. That is a saving of about $67,500. In Victoria, where typical packages run $700,000–$750,000, the real deposit is about $37,500 versus $90,000+ established.
Why is a new build so much cheaper to get into than an established home?
Two reasons. First, Queensland first home buyers pay $0 stamp duty on a new home — a saving of around $30,850 at the owner-occupier duty rate on a $1,000,000 purchase. Second, under the 5% Deposit Scheme there is no Lenders Mortgage Insurance. Together, buying a $1,000,000 new build needs about $54,500 versus about $122,000 for an established home — the same headline price, roughly $67,500 less cash to get in.
Did the income caps for the 5% deposit scheme really get removed?
Yes. In October 2025 the Government removed the income caps and annual place limits on the Home Guarantee Scheme, so there is no longer an income ceiling and no waitlist. Property price caps still apply — around $1,000,000 in Brisbane, the Gold Coast and Sunshine Coast, $700,000 in regional Queensland, and about $950,000 in Melbourne and Geelong.
What about the First Home Owner Grant — does it help?
It depends on the state. Victoria’s $10,000 First Home Owner Grant is genuinely usable at Victorian price points. In Queensland, the $30,000 grant exists but has a $750,000 price cap, and most new house-and-land packages sit above that — so for the typical Queensland buyer the grant is often not the lever. The real Queensland saving comes from $0 stamp duty and no LMI, which is why the deposit gap is about $67,500 regardless of the grant.
Where are most first home buyers buying new homes?
Based on Low Deposit Homes client data, around 88% of the first home buyers we help are buying in Queensland and around 12% in Victoria, concentrated in the major growth corridors. In South East Queensland, estates in the western and northern corridors (Ipswich, Logan, Greater Flagstone and the northern growth areas) lead, because that is where new house-and-land packages sit inside the 5% scheme’s price cap.
Run your own numbers
This report is the average. Your number depends on your state, your price, your timing and which schemes you qualify for. The fastest way to know is to run it — it’s free, with no obligation.
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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. Finance is arranged through licensed mortgage brokers and lenders. Low Deposit Homes operates under Winning Homes Australia Pty Ltd.