By Chaice Paterson, Founder, Low Deposit Homes
The usual reason people keep renting is the deposit — they assume they need a fortune. With a 5% deposit, no LMI and $0 stamp duty on a new build, getting into a $1,000,000 Queensland home costs about $54,500, not the $122,000 an established home would demand. Here’s the honest comparison.
| Renting | Buying a new build with a low deposit | |
|---|---|---|
| Upfront cash | Bond (~4 weeks rent) | ~$54,500 on a $1M QLD new build |
| LMI | n/a | $0 under the 5% Deposit Scheme |
| Stamp duty | n/a | $0 for QLD first home buyers on a new home |
| Monthly cost | Rent (rising, builds no equity) | Repayment (builds your equity) |
| Who controls it | Landlord | You |
| Long-term outcome | No asset | You own an appreciating home |
The deposit gap is the whole story
If you think buying needs a six-figure deposit, it feels impossible. But a new build under the 5% Deposit Scheme — with $0 stamp duty and no LMI — needs about $54,500 on a typical $1,000,000 Queensland package, versus about $122,000 for an established home. For many renters, the deposit they ‘can’t reach’ is far closer than they think.
Rent money vs repayment money
Rent rises over time and builds your landlord’s equity, not yours. A mortgage repayment is often comparable to rent in the growth corridors — but every payment builds your equity in an asset that tends to appreciate. The First Home Super Saver can also let you build the deposit faster using pre-tax contributions.
When renting still makes sense
Renting can be the right call if you need to move often, your income is about to change, or you’re not ready to commit to a location. The point isn’t that everyone should buy today — it’s that the deposit barrier is far lower than most renters assume, so the decision should be made on the real numbers.
The verdict
For a renter who can make the repayments, the case to keep waiting rarely survives contact with the real numbers. Getting into a new build can cost around $54,500 rather than the $122,000 an established home demands — and every month spent renting is equity you’re handing to someone else.
Frequently asked questions
Is it cheaper to rent or buy with a low deposit in 2026?
It depends on your rent and timeframe, but the upfront barrier to buying is far lower than most renters assume — about $54,500 to get into a $1,000,000 Queensland new build (5% deposit, no LMI, $0 stamp duty), versus about $122,000 for an established home. Monthly repayments are often comparable to rent while building equity instead of paying a landlord.
How much deposit do I need to stop renting and buy?
About $54,500 on a typical $1,000,000 Queensland new build under the 5% Deposit Scheme, or around $37,500 in Victoria — with no Lenders Mortgage Insurance. Help to Buy and the Family Home Guarantee can go as low as 2%.
Will buying really build wealth compared with renting?
Renting builds your landlord’s equity; a mortgage builds yours. Because the home is an appreciating asset and repayments can be comparable to rent in growth corridors, buyers typically build wealth over time that renters don’t — provided they buy within their means.
Can I use my super to help stop renting?
Yes. The First Home Super Saver scheme lets you withdraw up to $50,000 of voluntary super contributions toward your deposit, effectively saving with pre-tax income to reach a deposit faster.
Find your path
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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.