Queensland’s property market is booming, with median prices for Brisbane townhouses, Gold Coast beachside pads and Sunshine Coast apartments all climbing. For first-home buyers and seasoned investors alike, probably the common (and biggest!) hurdle is saving for your home loan deposit.
Your home loan deposit is the initial sum you pay towards the land purchase price before you draw a home loan. Lenders assess this against the loan-to-value ratio (LVR). The lower your LVR, the better your interest rate and mortgage repayments will be.
Alongside your deposit, you’ll also need to factor in Stamp Duty (or stamp tax), transfer duty, conveyancing fees, legal fees, building and pest inspections, Titles Office charges and Home Insurance.
This guide will explore how much you need for a home loan deposit in Queensland, including tips on how to boost your savings to get you prepared for your homebuying journey.
Secure Your Deposit Strategy Today. Talk to our trusted Queensland mortgage brokers at Zest Mortgage Solutions to map out a custom home loan deposit plan. Call us at (07) 3461 6499 or visit www.zestmortgagesolutions.com.au to learn more.
What Deposit Do I Need for a Home Loan in Queensland?
Your home loan deposit is the upfront cash you contribute towards the property’s purchase price before you draw down your loan. Lenders use this figure to calculate your loan-to-value ratio (LVR); the size of your loan compared to the property’s value.
In general, the lower your LVR, the more competitive your interest rate and the smaller your principal & interest repayments.
Common deposit tiers in 2025
- 20% deposit: No Lenders’ Mortgage Insurance (LMI) or Low Deposit Premium applies.
- 10% deposit: Triggers LMI (a one-off insurance premium protecting the lender), or you can lodge a deposit bond to cover the shortfall.
- 5% deposit: Available to eligible first home buyers under the Australian Government’s First Home Guarantee (formerly the First Home Loan Deposit Scheme), Regional First Home Buyer Guarantee and Family Home Guarantee, through approved participating lenders.
If your LVR exceeds 80%, you’ll generally pay LMI unless you secure an LMI waiver via one of the Home Guarantee Schemes.
Note that interest-only loans or investment loans typically carry higher interest rates than standard principal & interest home loans.
Chat with Zest Mortgage Solutions. Looking for personalised deposit advice? Talk to our Queensland mortgage broker team by visiting www.zestmortgagesolutions.com.au or calling us at (07) 3461 6499 today.
How Deposit Percentages Translate to Dollar Amounts in QLD
To turn LVR percentages into real figures for your budget, consider these examples based on median property values in key markets:
- Brisbane (City)
- Median property value: $800,000
- Deposit amounts:
- 5% = $40,000
- 10% = $80,000
- 20% = $160,000
- 5% = $40,000
- Median property value: $800,000
- Gold Coast
- Median property value: $750,000
- Deposit amounts:
- 5% = $37,500
- 10% = $75,000
- 20% = $150,000
- 5% = $37,500
- Median property value: $750,000
- Sunshine Coast
- Median property value: $700,000
- Deposit amounts:
- 5% = $35,000
- 10% = $70,000
- 20% = $140,000
- 5% = $35,000
- Median property value: $700,000
- Cairns (Regional)
- Median property value: $500,000
- Deposit amounts:
- 5% = $25,000
- 10% = $50,000
- 20% = $100,000
- 5% = $25,000
- Median property value: $500,000
Other property-type considerations
- CBD apartments typically cost around $600,000; a 10% deposit would be $60,000.
- Townhouses usually fall between apartments and standalone houses, so adjust your target deposit accordingly.
- For suburb-specific figures, run your own numbers using an online mortgage calculator or reach out to expert brokers, such as the team at Zest.
QLD Government Grants & Schemes to Reduce Your Deposit
Reducing your deposit hurdle doesn’t have to be a solo mission. Queensland’s state government offers several targeted grants and schemes to help ease your upfront costs and assist you in entering the market more quickly.
First Home Owner Grant (FHOG)
The FHOG awards eligible first home buyers $15,000 towards a new Queensland home valued up to $750,000. You apply through your lender with your home loan and must occupy the property as your principal residence for six continuous months.
First Home Concession
The First Home Concession in Queensland gives eligible first-time buyers full transfer duty exemption on established homes valued up to $500,000 and a reduced rate on values between $500,000 and $550,000. This concession can save you thousands in upfront fees, freeing up more cash for your deposit and moving costs.
Queensland Housing Finance Loan (QHFL)
QHFL offers eligible low-to-moderate income first home buyers low-interest, concessional loans of up to $500,000 for homes or $250,000 for vacant land. When you exceed FHOG income or property value caps, or simply need extra funds, you can stack these loans with the First Home Owner Grant and stamp duty concessions.
Each scheme has its own set of eligibility requirements, including income caps, property value limits and residency conditions. It’s a good idea to check the Queensland Treasury website or talk to a mortgage broker, such as our team at Zest, to find the best combination for your purchase.
How to Save Your Deposit & Cut Other Home-buying Expenses
Saving for a home deposit and trimming other upfront costs requires a multi-pronged approach. Here are seven practical tips to help you reach your target sooner and reduce home-buying expenses:
- Automate your savings: Set up a high-interest savings account with automatic transfers. This ensures you pay yourself first and maximise interest on your deposit fund.
- Use the 50/30/20 rule: Allocate 20% of your take-home pay directly to your deposit savings, 30% to wants and 50% to needs to keep your budget balanced.
- Cut housing costs: Downsize your rental, take on a housemate or move to a lower-cost area so you can channel the savings straight into your deposit.
- Pick up a side hustle: Freelance work, tutoring, or gig-economy jobs can add extra income that goes 100% into your deposit account.
- Negotiate and compare lender fees: Shop around for application fee waivers, valuation cost discounts or LMI concessions. Small savings on fees free up more cash for your deposit.
- Bundle professional services: Combine building & pest inspections with conveyancing through the same provider to secure package discounts on legal and inspection costs.
- Leverage cashback and rewards: Direct any credit-card cashback, bank sign-up bonuses or digital-bank rewards into your deposit pot to boost savings without feeling the pinch.
Minimise LMI, Maximise Your Deposit. Our Queensland mortgage brokers will show you how to structure your loan to avoid or waive Lenders’ Mortgage Insurance. Reach out today and start saving smarter. Call us at (07) 3461 6499 or visit www.zestmortgagesolutions.com.au and schedule a free chat with our brokers.
Frequently Asked Questions (FAQs)
What is the minimum deposit for a house in QLD?
You can technically start with a 5% deposit via government schemes like the First Home Guarantee or Regional First Home Buyer Guarantee, but most lenders require at least 10%–20% to avoid Lenders’ Mortgage Insurance (LMI).
What deposit do I need for a $500,000 house?
- 5% = $25,000 (via eligible guarantee scheme)
- 10% = $50,000 (standard, but triggers LMI)
- 20% = $100,000 (avoids LMI)
Can I buy a house with a low deposit?
Absolutely. You can combine a small cash deposit with options like deposit bonds, family guarantees or concessional loans (e.g. QHFL), though you may pay LMI unless you use a formal guarantee scheme.
When do I pay the deposit?
Your deposit is paid on exchange of contracts (usually within 7–10 days of signing), held in trust by your conveyancer or agent, and then applied at settlement.
What is a deposit bond?
A deposit bond is a bank or insurer guarantee that replaces your upfront cash deposit, promising the vendor you’ll pay the deposit on settlement instead of at contract exchange.
How much is Stamp Duty?
Stamp Duty (transfer duty) depends on property value, location and buyer type; first home buyers in QLD pay no duty up to $500,000 and a reduced rate up to $550,000.
What are the other upfront costs?
Budget for conveyancing/legal fees, building & pest inspections, Titles Office charges, LMI (if applicable), loan application fees, mortgage registration fees and home insurance.
Final Thoughts
No matter if you’re targeting a 5% deposit under the First Home Guarantee or a 20% deposit to avoid LMI, knowing exactly how much you need is the first step towards your Queensland home loan.
Our Queensland mortgage brokers can work out the right deposit tier for you, show you how to tap into grants, arrange deposit bonds or family guarantees, and handle all the LMI details.
Ready to see how achievable your deposit goal can be? Book your free consultation with Zest Mortgage Solutions today and let us tailor a plan that fits your budget and timeline. Call us at (07) 3461 6499 or visit www.zestmortgagesolutions.com.au to learn more.
