New Build vs Established Home for First Home Buyers (2026)


By Chaice Paterson, Founder, Low Deposit Homes

For a first home buyer, a brand-new build usually beats an established home of the same price — because the savings are built into how a new build is structured. On a $1,000,000 Queensland purchase, a new build needs about $54,500 to get into versus about $122,000 established. Here’s the honest comparison.

New build (house & land) Established home
Real deposit to get in ($1M QLD) ~$54,500 ~$122,000
Stamp duty (QLD first home buyer) $0 Full duty
LMI under 5% scheme None Often payable
First Home Owner Grant VIC $10k usable; QLD $30k but $750k cap Not available
Maintenance / repairs Minimal, builder warranty Often immediate, ongoing
Move-in timing Build time (months) Usually sooner

Why a new build costs so much less to enter

Same $1,000,000 price, about $67,500 less cash to get in. The gap comes from two things: a Queensland first home buyer pays $0 stamp duty on a new home (around $38,000 saved on a $1M purchase), and there’s no Lenders Mortgage Insurance under the 5% Deposit Scheme. That’s the whole reason new builds win for first home buyers — it’s structure, not a discount.

An honest word on the grant

You’ll see a lot of marketing lead with the $30,000 Queensland First Home Owner Grant. Be careful: it has a $750,000 price cap, and most new house-and-land packages sit above it, so for the typical Queensland buyer it often doesn’t apply. Victoria’s $10,000 grant genuinely is usable at Victorian price points. Either way, the big Queensland saving is the $0 stamp duty and no LMI — not the grant.

When an established home is the better call

An established home can let you buy in a tightly-held suburb that has no new land, and you can usually move in sooner. The trade-off is the higher entry cost (full stamp duty, often LMI) and inheriting immediate maintenance — an older roof, kitchen and hot-water system — that a new build with builder warranty doesn’t carry.

The verdict

For most first home buyers chasing the easiest entry, a new build wins: about $54,500 versus $122,000 to get into the same $1,000,000 home, thanks to $0 stamp duty and no LMI. Choose established only if location is non-negotiable and there’s no new stock that fits — and go in knowing it costs roughly $67,500 more cash to get through the door.

Frequently asked questions

Is a new build really cheaper to get into than an established home?

Yes, on cash to get in. A $1,000,000 Queensland new build needs about $54,500 versus about $122,000 for an established home of the same price, because first home buyers pay $0 stamp duty on a new home and no LMI under the 5% Deposit Scheme — a difference of roughly $67,500.

Do first home buyer grants apply to established homes?

No. The First Home Owner Grant is for new builds only. In Victoria it’s $10,000 and usable; in Queensland it’s $30,000 but has a $750,000 cap that most new packages exceed. Established homes don’t qualify at all.

How long does it take to move into a new build?

A house-and-land package takes build time — typically several months — versus moving into an established home sooner. Many buyers accept the wait because the entry cost is so much lower.

Do I pay stamp duty on a new build in Queensland?

First home buyers generally pay $0 stamp duty on a new home in Queensland — a saving of around $38,000 on a $1,000,000 purchase, and one of the main reasons a new build is cheaper to get into than an established home.

Find your path

The right answer depends on your numbers. Run your situation free, with no obligation, and we’ll map it out for you.

See if you qualify →Compare all the schemes →

General information only — not financial or credit advice. Eligibility, caps and dates depend on individual circumstances and can change; figures current as at June 2026. Finance is arranged through licensed mortgage brokers and lenders. Low Deposit Homes operates under Winning Homes Australia Pty Ltd.

Schedule a Call