A dad rang us recently with one question. He’d seen our ad, he had two kids starting at a new school and he wanted to know how much money he needed before he could buy.
It’s the question we hear more than any other. And the answer most people carry around in their heads (20% of the price) is out of date.
In this article we’ll cover:
- why 20% isn’t the rule anymore
- what counts towards your deposit
- the costs that sit on top of your deposit
- what Queensland first home buyers can save
- two worked examples
Why 20% isn’t the rule anymore
Twenty per cent is the point where most lenders stop charging lenders mortgage insurance (LMI). It’s a comfortable place to be. It isn’t the minimum.
Depending on your situation:
- Government scheme: the Australian Government’s 5% Deposit Scheme can let eligible first home buyers purchase with a 5% deposit and no LMI. It’s open to Australian citizens and permanent residents, with no income caps. Property price caps vary by location.
- Family guarantee: a parent or close family member can offer equity in their own property as extra security. In some cases that means you need little or no deposit of your own.
- Smaller deposits with LMI: some lenders will lend with less than 20% if you pay LMI.
Each one has rules and each one suits different people. The point is that you have options.
What counts towards your deposit
Lenders look at where your deposit comes from, not just the total.
- Savings: most lenders like to see money you’ve saved yourself over at least three months (often called genuine savings).
- A gift from family: many lenders accept it, usually with a signed letter confirming it doesn’t need to be paid back.
- A family guarantee: covered above. It replaces part of the deposit rather than adding cash.
- The First Home Owner Grant: some lenders count it towards the deposit when you’re buying or building a new home (more on that below).
Each lender has its own rules, so it pays to check before you sign a contract.
The costs that sit on top of your deposit
This is where people get caught. The deposit is only part of the money you need. You’ll usually also pay for:
- transfer duty (often called stamp duty)
- registration fees for the transfer and the mortgage
- conveyancing or legal fees
- building and pest inspections
- LMI, if it applies
- moving costs (and the first few things you’ll inevitably need to buy for the house)
What Queensland first home buyers can save
Queensland offers first home buyers real help right now:
- Buying a new home: eligible first home buyers can pay no transfer duty, with no cap on the value.
- Buying an established home: transfer duty is nil up to $700,000 and phases back in up to $800,000.
- First Home Owner Grant: $30,000 towards a new home valued under $750,000 (including land). The Queensland Government has continued the $30,000 amount for eligible contracts signed from 1 July 2026.
Hot Tip: The grant and the duty concession are separate. If you’re buying or building a new home you may be eligible for both.
Two worked examples
Example: Established home, $650,000, using the 5% Deposit Scheme
- Deposit (5%): $32,500
- Transfer duty: $0 (first home concession)
- Conveyancing: around $1,500–$2,500
- Building and pest: around $500–$800
- Registration fees: about $2,700 for the transfer and the mortgage (Titles Queensland fees from 1 July 2026)
- All-in: roughly $37,000–$39,000
Example: New home, $650,000, using the 5% Deposit Scheme
- Deposit (5%): $32,500
- Transfer duty: $0 (first home new home concession)
- Conveyancing and registration: similar to above
- First Home Owner Grant: $30,000 towards the purchase
When the grant is paid (and whether a lender will count it towards your deposit) depends on the lender and whether you’re buying or building. We’ll check that for you before you sign anything.
Note: These figures are examples only. Your numbers will depend on the price, your eligibility and the lender.
What to do next
Forget 20% for a minute. The number that matters is your all-in figure. It’s often smaller than people expect.
Book a complimentary 15-minute chat. We’ll work out your all-in number, which schemes you may be eligible for and how much you could borrow across 50+ lenders.
Sources: First Home Owner Grant, Queensland Government · Transfer duty concessions, Queensland Government · 5% Deposit Scheme FAQ, Australian Government · Titles Registry fees 2026–27, Titles Queensland
This is general information only and doesn’t take into account your objectives, financial situation or needs. Time Home Loans Pty Ltd ACN 161 695 012, Credit Representative 529395 is authorised under Australian Credit Licence 384324.
