By Chaice Paterson, Founder, Low Deposit Homes
On a $1M new build in Queensland, you can be in the door for around $54,500 cash. Buy a pre-established home at the same price with no grants applied, and you’re looking at roughly $122,000 — about $67,500 more. Same 5% deposit on both. The difference isn’t the deposit; it’s the Lenders Mortgage Insurance and stamp duty a new build can legally avoid. That’s the whole reason low deposit house and land packages exist, and it’s the number most builder websites bury. In Victoria, entry on a typical package is around $37,500.
What a “low deposit” house and land package actually means
A house and land package is two contracts — one for the land, one for the build — packaged so you buy them together. “Low deposit” means you’re using government schemes and the structure of a new build to get in with a fraction of what people assume they need.
The myth is that you need 20% — on a $1M home that’s $200,000. You don’t. With the right scheme you’re contributing a 5% deposit and avoiding the costs that pile on top of an established purchase. The deposit is the same 5% whether you buy new or established. What changes is everything stacked around it.
The deposit truth most builders won’t lead with
Here’s the honest comparison on a $1M home, no grants applied:
| New build (house & land) | Pre-established home | |
|---|---|---|
| Deposit | 5% (~$50,000) | 5% (~$50,000) |
| Lenders Mortgage Insurance | $0 under the scheme | Added on |
| Stamp duty | $0 in QLD on new builds (no cap) | Added on |
| Approx. cash to enter | ~$54,500 (QLD) | ~$122,000 |
The roughly $67,500 gap is the LMI and stamp duty a new build sidesteps. The $122,000 is not a 20% deposit — it’s a 5% deposit plus LMI, stamp duty and costs on an established home. Big builders quote a slick “from 5% deposit” line. Few of them put the established-home comparison next to it, because the gap is the entire selling point.
The schemes that make the deposit small
You don’t get there on one scheme — you stack the ones you qualify for:
- 5% Deposit Scheme (Home Guarantee): No income cap since 1 October 2025. Price caps around $1M for metro Brisbane, Gold Coast and Sunshine Coast, $700k regional QLD, ~$950k Melbourne/Geelong, $1.5M Sydney. Open to Australian citizens and permanent residents. No LMI.
- QLD First Home Owner Grant: $30,000, with a $750,000 price cap — and most packages now sit above that cap, so plenty of buyers don’t capture it. It’s locked in at $30,000 until mid-2030 (2026–27 Queensland Budget). Queensland also charges $0 stamp duty on new builds, with no price cap.
- VIC First Home Owner Grant: $10,000. Victoria is stamp-duty exempt to $600k and gives a concession to $750k.
- Help to Buy: A 2% deposit shared-equity scheme, citizens only, income caps of $100k single / $160k couple. It can’t be combined with the 5% scheme.
- First Home Super Saver: Pull up to $50,000 of your own voluntary super contributions out toward the deposit ($15,000 per financial year).
Which stack is right depends on your income, residency, the state and the price. That’s the part we do for free.
Where Low Deposit Homes fits
We’re free to you. We’re not a lender and not a mortgage broker. We’ve helped 1,000+ families work out exactly what they can enter on, then matched them to a house and land package that fits the numbers — not the other way around.
FAQ
How much deposit do I really need for a house and land package in Australia? On a $1M new build in QLD, around $54,500 cash to enter, using a 5% deposit plus the schemes you qualify for. Victoria is closer to $37,500. You do not need 20%.
Why is a new build cheaper to get into than an established home at the same price? The deposit is the same 5% on both. A new build can avoid Lenders Mortgage Insurance (under the 5% scheme) and stamp duty (QLD charges $0 on new builds). On a $1M home that’s roughly a $67,500 difference — about $122,000 to enter an established home versus ~$54,500 for the new build.
Do I get the First Home Owner Grant on a house and land package? In QLD the First Home Owner Grant is $30,000 but has a $750,000 price cap, and most packages now exceed it — so many buyers don’t capture it. It’s locked in at $30,000 until mid-2030 (2026–27 Queensland Budget). In VIC the grant is $10,000.
Can I use the 5% Deposit Scheme if I’m a permanent resident, not a citizen? Yes. Since 1 October 2025 the 5% scheme is open to both Australian citizens and permanent residents, with no income cap.
Is Low Deposit Homes a lender or a broker? No. We’re free to buyers and we’re not a lender or mortgage broker.
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.