Initial and balance deposit in Queensland: when to pay

Before you transfer a house deposit, check 3 things with your solicitor: how much is due, when it is due and who holds it. Your contract may split this into an initial deposit and a balance deposit, each with its own deadline. Use those dates, not a general rule about paying within 3 business days.

Watch on YouTube: What is an initial deposit for a house in Queensland?

Your contract sets the deposit amount and due dates. The amounts in the video are examples, so check your own contract before transferring money.

This guide covers buying an established home in Queensland. Auctions, off-the-plan purchases and contracts in other states can work differently. Have your solicitor check the terms before you sign or send money.

The deposit you pay under the sale contract is a part-payment towards the home. It is different from the total contribution your lender needs you to make. Paying a small contract deposit does not mean the bank will lend you the entire remaining price.

If you are still working out the loan deposit, start with our minimum deposit guide and genuine savings guide. For how much you need to save, our Queensland house deposit guide covers the amounts.

Start with the deposit section in your own contract rather than a page number from someone else's form. Check the named deposit holder and any initial and balance deposit amounts. The balance deposit is only payable if your contract provides for it, on the date or event written into that contract.

Use the dates in the contract and put them in your calendar as soon as you sign. The initial payment may be due before finance approval. Do not wait for the loan to be approved unless the contract allows that timing.

Paying the deposit does not, by itself, make the contract unconditional. Finance, inspections and other conditions have their own requirements and deadlines. Keep your solicitor involved when those conditions are due to be satisfied or waived.

Tell us the purchase price, cash available and payment dates. We can check the loan funding while your solicitor confirms the contract deadlines.

Pay the deposit holder specified in your contract, commonly the selling agent's trust account. Before transferring, call the agent or solicitor on a number you have independently confirmed and read back the account details. Don't rely only on an email, especially one announcing a last-minute change.

Check your bank's daily transfer limit in advance and allow for processing time. Keep written evidence of the transfer and send it promptly to the deposit holder and your solicitor. Ask for a receipt when the money arrives.

Standard REIQ terms can recognise an electronic payment made before the money reaches the account, but conditions apply, including providing written evidence. This is not permission to pay late. Ask your solicitor how the clause and any special conditions apply if a transfer is delayed.

The deposit counts towards the purchase price, so don't budget for it twice. Here is the calculation using a $500k purchase and $450k in loan funds available for the price.

That $40k excludes buying costs and settlement adjustments. Allow separately for legal fees, inspections, any transfer duty, lender charges and adjustments such as rates. Ask your solicitor for the final amount and when it needs to be available. Our deposit calculator helps with the initial budget.

For the duty part of your budget, use our Queensland stamp duty calculator and have your solicitor confirm the amount.

In Queensland, responsibility for the property commonly passes to the buyer at 5pm on the first business day after the contract date. Confirm the timing with your solicitor and arrange appropriate cover. It is not something to leave until the deposit clears or you collect the keys.

If you are buying a unit or townhouse, ask what the body corporate policy covers and what you need to insure yourself. Your lender may also require evidence of cover. Our guide to getting insurance in place covers what to arrange, and the settlement hub covers the other tasks.