First Home Buyer - How much deposit do I need?

March 13, 2014
Rikki Stanley

By Stuart Pullar - March 13, 2014:

How much deposit do I need for a loan to buy my first home in Queensland?

As a First Home buyer in Queensland you get a full waiver of Property Stamp Duty up to $500k and a partial waiver up to $550k.  This will significantly reduce the cost of your purchase. 

The typical costs for first home purchases up to $500k are around $3,500 to $4,100. 

This is mainly comprised of:


  • Your legal or conveyancing fees, which is approximately $1,350 including searches, fees and GST;
  • Building and pest inspections, which are approximately $550.
  • Application fees. Depending on the lender these may not apply or may have annual or monthly fees instead.  Work on $600 as a starting point.
  • Lender legals. These vary but work on $170.
  • Registration of the transfer.For a $500k purchase, this is $1,112 
  • Registration of the mortgage, factor in 2 transfer fees of $157.50 each. 

The maximum loan that lenders will consider for first home purchases is 95% of the value of the property. 

This would be a $25k deposit for a $500k purchase.

Some lenders will allow you to fully capitalise Lenders Mortgage Insurance (i.e. add it to the loan).

Therefore the minimum deposit that you may need to purchase a $500k property is $29k.

However, it is important to sit down with a good broker to make sure you meet the requirements for this type of lending. 

One of the main restrictions may be whether you can demonstrate Genuine Savings. 

Most lenders who require Genuine Savings require you to have held or saved 5% of the purchase price over 3 or more months.

An alternative to demonstrating Genuine Savings is to demonstrate a good rental history.

This needs to be through a registered Rental Agent and Tenancy Agreement.

Again, each eligible lender has slightly different requirements in terms of how long you need to have been renting and the requirements for the tenancy agreement so please check your situation with me before proceeding. 

In most cases, if you don’t have Genuine Savings but can show rental history, the eligible lenders have maximum loans of 97% including Lenders Mortgage Insurance so this makes your minimum deposit for a $500k purchase closer to $43k.

Gifted funds and Family Guarantees are also possible strategies for getting into your first home faster.

The key message is to take the time to sit down with me or one of my Loan Writers to plan your strategy in advance. 

There are all sorts of tips that we can pass on that will help you reach your goal as soon as possible.

Call me today on 3366 9982, or email me directly on

Posted in: First home buyers

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