Deposit requirements for house and land packages work differently from buying an established property, and a lot of buyers get caught out by not understanding the timeline. [cite: 206]
The Two-Stage Structure
A house and land package involves two separate contracts. One for the land and one for the build. [cite: 209] This affects how much deposit you need and when you need it. [cite: 210]
- Land deposit — Typically 10% of the land price is required at signing. On a $300,000 lot, that’s $30,000. [cite: 211]
- Construction deposit — Usually 5% of the build contract at signing, then progress payments as stages complete. [cite: 212]
- Total deposit needed upfront — Often $40,000 to $60,000 for a $700k package, depending on the split between land and build. [cite: 213]
Government Help That Can Reduce Your Deposit Burden
- First Home Guarantee Scheme — Allows eligible first home buyers to purchase with as little as 5% deposit without paying lenders mortgage insurance. [cite: 215] From 1 October 2025, places are unlimited and income caps have been removed. [cite: 216]
- First Home Owner Grant — $10,000 for eligible new home builds in Victoria. Paid at slab stage. [cite: 217]
- Stamp duty exemption — Zero stamp duty on properties up to $600,000, which frees up cash. [cite: 218]
Talk to KR Peters. The deposit question is usually just the start of the conversation. [cite: 220] We’ll connect you with a good mortgage broker who works in this space regularly. [cite: 221] Getting the finance structure right from the beginning saves a lot of stress later. [cite: 222]
References: 1. Xircon Homes. [cite: 224] 2. State Revenue Office Victoria. [cite: 225] 3. AusTax Tools. [cite: 226]