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What is an initial deposit for a house in Queensland?

By Andrew Bell

If you're in the market for a house, you know that there is a lot to consider when making such a meaningful purchase. One important component to consider when getting ready to buy a home is the initial deposit. While most people understand that a deposit is necessary, they might not know how much it could be. Knowing the initial deposit cost is valuable so that you can save the amount and prepare your finances for the incoming cost. Let's break down the cost of an initial deposit for buying a house in Queensland.

Buying a house in Queensland

The housing market in Queensland has evolved over the years, with demand greater than it was ten years ago. There have been interstate migrations from other states to Queensland, which has definitely impacted the cost of houses in the region. For those serious about buying real estate in Queensland, it's important to take note of the current state of the market.

Of course, there are areas that are in higher demand than others, so it really depends on where you are interested in making a purchase. Here is a brief breakdown of median house prices in different Queensland suburbs from

  • Mudgeeraba, Gold Coast: $895,000
  • Bli Bli, Sunshine Coast: $830,000
  • Camp Hill, Brisbane: $1,248,000
  • Oxenford, Gold Coast: $745,000
  • Carindale, Brisbane: $1,282,500

The cost of the home you are buying will impact the amount that the initial deposit will be. This will be on top of other costs like transfer duty, land tax, insurance and stamp tax. But what else do you need to know about that initial deposit?

What to know about deposits

The initial deposit will be the amount of money that you will put down when buying a house. First, you will reach an agreement with a seller and this will include how much money you will deposit. It's best to contribute as much as you can so that your payments are smaller but only as much as you can afford.

According to the Queensland government, you will most likely need a deposit of about 5-10% of the entire purchase price. This is the amount that will help you secure the loan amount from the bank. The more you can offer as a balance deposit, the more likely you will be approved. If you can, try to contribute 20% of your deposit.

This is helpful for several reasons, including the fact that you won't have to pay lenders mortgage insurance. Mortgage insurance protects the lender if you default on the loan. You can work with a mortgage broker and a real estate agent to determine the best initial deposit.

Building a strong deposit is important for your house-buying journey. When embarking on the path, it's helpful to start out with a small amount of debt and have your finances in order.

How to manage contracts

As previously mentioned, your initial deposit will be agreed upon through a contract with the seller. In most cases, the deposit can be negotiated. Here are some other components of the contract that you will be agreeing to when it's approved:

  • Home buyer's solicitor.
  • The full purchase price.
  • Finance approval.
  • Building and pest inspection.
  • Special conditions.
  • Settlement period.

There are two parts to the deposit in the agreement. They are

  • Initial deposit: This is the amount payable once the contract is accepted by both parties.
  • Balance deposit: This is the amount payable once a contract becomes unconditional.

The best thing to do when working with complex contracts of any kind is to run the document by your lawyer. They will be able to tell you what everything means and if you are getting a fair deal. It's best to understand what you are signing before you agree to it.

Other fees to be aware of

We've already briefly touched on some of the other costs that come with buying a house, but now we will go into further detail. This is important to fully comprehend so you can have an accurate budget in prep.

Home loan application fee

This fee will help process your application, prepare loan documentation and lodge the document at the Titles Office.

Valuation fee

When you pay this, it will pay the lender to get a professional to estimate the property's worth.

Mortgage insurance

It is required to have mortgage insurance as a person who is applying for a loan. Remember that you don't have to pay for mortgage insurance if you aren't borrowing more than 80% of the property's value.


According to the Queensland government, conveyancing fees cost $600–1,500. Conveyancing is the preparation of legal documents for the transfer of land.

Stamp duty

In every state, you have to pay the government charge that will take care of government fees. You can think of this as a tax that depends on the value of the deposit.

Registration fees

According to the Queensland government, "The Titles Office charges a fee to register the mortgage and land transfer, which officially records you as the new home owner."


A homeowner has to pay for insurance to protect their investment. Make sure that you have this line out from the date you sign the land contract of sale for it to be legal.


You'll need a building inspection as well as a pest inspection. This is for your own peace of mind so that you know the house has no severe issues.

Work with the best

When you have the best team on your side, things like paying for the initial deposit can go much smoother. Professionals are well-versed in the world of real estate sales, and they can answer any questions you may have about the process.

Are you ready to become a homeowner? Reach out to the professionals at Ray White Surfers Paradise.

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