How Much Deposit Do You Need for Off the Plan in Australia?

Written by Bill, BK Home Broker — August 25, 2026

For off-the-plan property in Australia, you typically need a 10% deposit paid at contract signing, held in a trust account until settlement. Eligible first home buyers can purchase with as little as 5% deposit through the federal First Home Guarantee, avoiding Lenders Mortgage Insurance (LMI) entirely. Some developers also accept 5% deposits on specific releases. BK Home Broker can advise on current low-deposit options with zero buyer fees.

The Standard Off-the-Plan Deposit: 10%

The standard deposit is 10% of the purchase price, paid at contract exchange and held in a statutory trust account until settlement — not released to the developer. For a $650,000 house and land package, that's $65,000 at signing.

Settlement typically occurs 12–24 months later once the build is complete. If the developer goes into administration before then, the deposit trust is quarantined from creditors.

Can You Buy Off-the-Plan With a 5% Deposit?

Yes, two ways:

1. The federal First Home Guarantee — eligible first home buyers purchase with 5% deposit and no LMI; the government guarantees the remaining 15%.

2. Developer incentives — some projects accept 5% deposits on specific releases, particularly initial releases or end-of-project stock. BK Home Broker monitors which projects currently offer this.

First Home Guarantee: Who Qualifies?

• Australian citizen or permanent resident

• First home buyer — never owned property

• Income under $125,000 (single) or $200,000 (couple)

• Property must be new build, off-the-plan, or substantially renovated

• Price cap: $700,000 (Brisbane/regional QLD), $800,000 (Melbourne) — check current caps

• 35,000 places per financial year; spots fill fastest in H2

What Counts as Your Deposit?

• Genuine savings — held in your account for 3+ months

• First Home Owner Grant — in QLD, the $30,000 FHOG contributes at settlement, not at contract exchange

• Gifts from family — some lenders accept gift letters

• First Home Super Saver Scheme (FHSS) — up to $50,000 in voluntary super contributions can be withdrawn, particularly useful for off-the-plan given the extra time to grow the balance

Lenders Mortgage Insurance (LMI): How to Avoid It

LMI protects the lender — not you — if you default with less than 20% deposit. Premiums typically cost $8,000–$25,000 for a first home buyer with a 5–10% deposit on a $600,000–$750,000 property.

Ways to avoid LMI:

• Use the First Home Guarantee (5% deposit, government guarantee covers it)

• Save a 20% deposit

• Use a guarantor (parent provides equity as security)

For most first home buyers, the First Home Guarantee is the fastest and cheapest path.

Deposit Timeline: Apartment vs. House and Land

Property Type	Deposit Structure
Off-the-plan apartment	10% at contract exchange, 90% at settlement (18–36 months later)
House and land package	10% on the land contract at signing, then progress payments as construction milestones are reached (slab, frame, roof, fit-out, completion)

House and land buyers need construction finance — a mortgage that draws down in stages rather than a lump sum at settlement.

How BK Home Broker Helps With Deposit Planning

BK Home Broker helps buyers understand their deposit requirements before signing anything, connects them with specialist mortgage brokers for First Home Guarantee applications, and identifies projects currently accepting 5% deposits. Zero fee to buyer.

Book a free consultation at bkhomebroker.com.au.

FAQs About Off-the-Plan Deposits

Is a 10% deposit held safely?

Yes. Off-the-plan deposits are held in statutory trust accounts regulated by state law and cannot be accessed by the developer until settlement.

Can I use my FHOG as a deposit?

The QLD FHOG ($30,000) is paid at settlement, not contract exchange. You still need to fund the 10% (or 5% under the First Home Guarantee) at signing — but the FHOG reduces the amount you need to borrow at settlement.

What happens to my deposit if the developer goes broke?

If a developer enters administration before settlement, your deposit is protected in the statutory trust and you can generally terminate the contract and recover it in full. Always verify your solicitor has confirmed the trust arrangement before exchanging contracts.