How Much Deposit Do You Need for a House and Land Package?

A deposit is the part of the purchase you pay yourself. On a house and land package there is not one deposit, there are two, and they fall due at different times.

Understanding that rhythm early makes the whole process calmer, because you know what is needed and when.

The two deposits

• Land deposit. Usually ten per cent of the land price, paid when you sign the land contract or when it goes unconditional.
• Builder deposit. Commonly five per cent of the building contract, paid when you sign with the builder.

On a single contract package the deposit is set by that one contract, so always ask which structure you are looking at.

How much you actually need

Lenders look at the whole project, land plus build. A deposit of twenty per cent of the total usually avoids lender mortgage insurance. Below that, insurance is generally added to the loan. Some lenders accept as little as five per cent, with the cost of that insurance reflected in the rate or the fee.

What matters beyond the percentage:

• Genuine savings held for a period of time, not just sitting in an account this week
• A clean credit history, since lenders reassess between land settlement and the start of the build
• Enough left over for the costs a deposit does not cover, such as conveyancing, inspections and connections

Government schemes and first home buyer support change regularly, so the right answer for your household comes from a broker rather than a headline. The Sorted Mortgages team works on house and land packages every week and can map out what you qualify for.

When the money is paid

1. Hold the block or package with an initial part payment.
2. Pay the land deposit at contract or unconditional stage.
3. Settle the land, then pay the builder deposit at building contract signing.
4. Make progress payments as the build reaches each stage.
5. Final payment at handover, once the home is complete and inspected.

How to get ready early

• Know your borrowing power before you fall for a block, because it shapes which suburbs you can look at.
• Have the deposit and the costs sitting in one place, clearly yours.
• Ask us to check the timing with finance before you sign the land contract.
• Browse first home packages to see what your budget reaches.

Frequently asked questions

Do I pay a deposit on the house as well as the land?

Yes, in most two contract packages. The land deposit secures the block, and a separate builder deposit secures the build once the land is settled or settlement is close.

Can I use gifted money or a guarantor?

Often, yes. Many lenders accept a gift from a family member with a written declaration, and some accept a limited guarantee from a parent secured against their own property. Both need to be arranged before you sign.

Can the first home owner grant pay my deposit?

No. Grants are generally paid at settlement or handover, well after the deposit is due. Treat the grant as money that comes back to you later, not as funds you can put down.

What if the land registers later than expected?

Your finance approval has an expiry date. We watch registration dates closely and ask your broker to flag any approval that needs refreshing, so nothing lapses quietly.

Next step

If you want to know what you can borrow and what that buys, look at the current packages and then start a conversation with us. We will introduce the right finance specialist and begin with the numbers.