How Much Home Loan Deposit Do You Need on the Gold Coast?
How much do you need to save before buying a home on the Gold Coast? For some buyers, a 5% deposit may be possible. Others may need 10%, 20% or more, depending on their loan, the property and the lender’s requirements.
The deposit is only part of the answer. You also need enough money for purchase costs and, ideally, some savings left after settlement.
What does a 5%, 10% or 20% deposit look like?
For a $700,000 property, the deposit amounts would be:
These figures are before purchase costs. They also assume the lender accepts the property value used in your calculations. If a lender’s valuation comes in below your purchase price, you may need more cash than expected.
Lenders describe the share of a property’s value you borrow as the loan-to-value ratio, or LVR. Broadly, a 5% deposit means borrowing around 95% of the value; a 20% deposit means borrowing around 80%.
Can I buy on the Gold Coast with a 5% deposit?
Potentially. Eligible buyers can purchase through the Australian Government 5% Deposit Scheme with a minimum 5% deposit and no lenders mortgage insurance (LMI). Eligible single parents or single legal guardians of dependent children may qualify with a minimum 2% deposit.
The scheme has eligibility rules and location-specific property price caps. You must also satisfy a participating lender’s loan assessment. A 5% deposit does not mean automatic approval, and you remain responsible for the loan repayments and other buying costs.
A smaller deposit can help you buy sooner, but it usually means a larger loan, higher repayments and less equity at the start. It is worth comparing those costs with the time it would take you to save more.
Is a 10% deposit enough?
A 10% deposit may give you more lender and loan options than a 5% deposit. LMI can still apply unless you qualify for an exemption or an eligible scheme.
LMI protects the lender if the borrower defaults; it does not protect the borrower. Depending on the loan, the premium may be payable upfront or added to the loan. If it is added to the loan, you may pay interest on that amount.
There is no universal rule that says you must wait until you have 20%. The useful comparison is what buying now would cost you, what waiting could achieve, and how much cash you would have left after settlement.
Why do buyers aim for a 20% deposit?
With a 20% deposit, your loan is generally at an 80% LVR, where LMI is commonly avoided. Borrowing less can also reduce your repayments.
But putting every available dollar into the deposit can leave you short when moving costs, repairs or an unexpected expense arrive. The deposit that works best for you may be smaller than the maximum you could put down.
What else do I need to save for?
When setting your Gold Coast property budget, allow for costs that may include:
Transfer duty, if a concession does not cover it
Conveyancing and property searches
Building and pest inspections
Lender, valuation or settlement fees
Insurance
Moving costs and immediate repairs
A cash buffer after settlement
The amounts depend on the property and your circumstances. An apartment purchase, for example, can bring different checks and ongoing costs from a house purchase. Ask for a full estimate of the money required to complete the purchase before you make an offer.
What help is available to Queensland first home buyers?
Queensland’s transfer duty rules depend in part on whether you buy an established home or a new home.
For an eligible first buyer of an established home, the first home concession can reduce duty to nil on a home valued at $700,000 or less. A partial concession may apply below $800,000.
For an eligible first buyer of a new home under a contract dated 1 May 2025 or later, the first home (new home) concession can reduce transfer duty to nil without a home-value cap. Its eligibility conditions still apply.
There is also a separate Queensland first home owner grant for eligible buyers building or purchasing a new home valued at less than $750,000, including land. For eligible contracts signed now, the grant is $30,000. It does not apply to an established home.
These benefits have different rules. Check your eligibility and how each benefit is paid before relying on it in your purchase budget.
Compare more than one deposit option
Before deciding what you can afford to offer, ask your broker to model:
The smallest deposit available to you and its full costs
A larger deposit that still leaves savings after settlement
A 20% deposit, if it is achievable
Compare the loan repayments, possible LMI, purchase costs and cash remaining under each option. Tell your broker whether you’re considering an apartment, established house, new home, vacant land or a construction project, as the lending requirements can differ.
Talk to Smart Money Tribe
I’m Nick Harrigan, a Gold Coast mortgage broker and the founder of Smart Money Tribe. I’ve worked in mortgage broking since 2011. When you work with me, you have one point of contact from our first conversation through to settlement and beyond.
Call 1300 280 327 to talk through your plans, the loan options available to you.
For independent guidance on broker commissions, direct fees and questions to ask, see ASIC Moneysmart’s guide to using a mortgage broker.
Disclaimer: This article provides general information only. It does not take into account your individual circumstances, objectives or financial needs. Loan costs, fees and eligibility vary. Speak with a qualified professional about your circumstances before making a financial decision.
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