Beginner's Guide to Getting Your Deposit Ready

What You Actually Need to Save Before You Apply

You need at least 5% of the purchase price saved in genuine savings, plus enough to cover stamp duty and settlement costs.

For someone buying in Redbank Plains at the current median, a 5% deposit under the Australian Government 5% Deposit Scheme opens up opportunities without waiting years to reach 20%. The scheme covers the gap between your deposit and 20% so you avoid paying Lenders Mortgage Insurance. Stamp duty on a new home in Queensland is now reduced to nil under the first home new home concession, which means more of your cash stays available for furniture, moving costs, or an emergency buffer after settlement.

Consider a buyer who saved $35,000 over two years. They could use that toward a deposit on a new home in the suburb and still have cash left over for settlement costs like conveyancing, building inspections, and lender application fees. Without a concession, those upfront costs would stretch the budget significantly.

How Lenders Define Genuine Savings

Genuine savings are funds you've held in your own name for at least three months that show a pattern of regular deposits.

Lenders want to see you can manage money over time. A savings account with regular deposits, a term deposit held for three months, or balances in your superannuation all count. A tax refund that lands in your account one month before you apply usually doesn't. A gift from a parent can be used toward your deposit, but it won't count as genuine savings unless it's been sitting in your account for at least three months. Some lenders accept gifted deposits more readily than others, which is where working with a mortgage broker in Redbank Plains becomes useful.

In a scenario where a buyer had $20,000 saved and received a $15,000 gift from family, the lender treated the $20,000 as genuine savings and the gift as additional funds. The buyer met the serviceability requirements, the lender approved the loan, and the family contribution meant they could move in sooner than expected.

The Role of Pre-Approval in Your Property Search

Pre-approval tells you what you can borrow before you start looking at properties.

It's not a guarantee, but it gives you a clear borrowing limit and shows agents you're ready to move. Pre-approval usually lasts between three and six months depending on the lender. During that time, you can shop with confidence. If your income or employment changes, or if you take on new debt, you'll need to update your broker and possibly reapply. Pre-approval also locks in your borrowing capacity based on current lending criteria, so even if a lender tightens serviceability tests later, your approved amount generally stays intact as long as nothing on your side changes.

Redbank Plains is close to Ipswich, Ripley, and Springfield, so buyers often look across multiple areas once they know their budget. Having pre-approval means you can move quickly when the right property comes up, particularly in a suburb where entry-level homes tend to attract multiple offers.

Should You Use a Fixed or Variable Rate

A variable rate gives you flexibility with extra repayments and access to features like offset accounts, while a fixed rate locks in your repayment amount for a set period.

Most first home buyers choose variable or split their loan between fixed and variable. A variable loan lets you pay extra whenever you have spare cash, which can reduce the loan term and the total interest paid. An offset account linked to a variable loan means any balance in that account reduces the interest charged on your home loan, even if you're not making extra repayments directly.

Fixed rates suit buyers who want certainty. You know exactly what you'll pay each month, which makes budgeting straightforward. The trade-off is that most fixed loans limit extra repayments to around $10,000 to $30,000 per year, and you generally can't access an offset account. If you break a fixed loan early by refinancing or selling, break costs can apply depending on rate movements since you locked in.

A split loan lets you fix part of your loan and keep the rest variable. You get some certainty and some flexibility. We regularly see buyers fix 50% to 70% of their loan and leave the rest variable so they can make extra repayments or use an offset without restriction.

Queensland Stamp Duty Concessions That Apply Right Now

If you're buying a new home in Redbank Plains, you pay no transfer duty on the residential land component regardless of the purchase price.

The first home new home concession applies to contracts signed from 1 May and has no price cap. That's a significant difference compared to buying an established home, where duty is reduced but not eliminated. On an established home, duty is calculated at the standard home concession rate, then reduced further by a first home concession amount. The maximum first home concession deduction is $17,350 for properties valued up to $709,999, and it phases out completely at $800,000.

For buyers choosing between a new townhouse and an established house in the suburb, the duty saving on the new build can be the difference between needing an extra $15,000 at settlement or having that cash available for other costs. At least one applicant must be an Australian citizen, permanent resident, or specified foreign retiree for contracts entered into from 1 August.

Using the First Home Owner Grant Alongside Your Deposit

The Queensland First Home Owner Grant is $15,000 for new homes valued under $750,000.

You can't use the grant for an established home. The grant is paid after settlement, so it won't form part of your deposit unless your lender allows you to capitalise it into the loan, which some participating lenders under the 5% Deposit Scheme will do. If you're building, the grant is usually paid at the point of practical completion. You apply through your legal representative or conveyancer during the settlement process.

The grant works well alongside the new home stamp duty concession and the 5% Deposit Scheme. Combined, they reduce the cash you need upfront and give you a lump sum shortly after settlement that can go toward furniture, minor renovations, or replenishing your savings buffer.

What Documents You'll Need When You Apply

Lenders will ask for proof of income, proof of savings, identification, and a purchase contract once you've found a property.

If you're a PAYG employee, that means recent payslips, tax returns, and a letter of employment. If you're self-employed, lenders typically want two years of financials and tax returns. Proof of savings includes bank statements covering at least three months showing your deposit and genuine savings. You'll also need a driver's licence or passport, and a rates notice or utility bill to confirm your current address.

Once you've signed a contract, your broker submits the full application with the contract of sale attached. The lender orders a valuation, and if everything aligns, formal approval follows within a few days to a couple of weeks depending on how busy the lender is. Keeping your documents organised from the start speeds up the process and reduces the chance of delays.

Redbank Plains is close to Ipswich CBD, Springfield Central station, and the Centenary Highway, which means it appeals to buyers commuting to Brisbane or working locally. The suburb has a mix of established homes and newer estates, and entry-level pricing compared to inner Brisbane makes it a common starting point for buyers using low deposit schemes. Local schools, parks, and shopping centres give it a family-focused feel, and most properties in the area fall comfortably within the $1,000,000 property price cap for the 5% Deposit Scheme in Queensland regional centres.

Call one of our team or book an appointment at a time that works for you. We'll walk through your savings, your borrowing capacity, and the home loan options that match what you're trying to achieve.

Frequently Asked Questions