How Much Deposit You Really Need for a New Green Square Apartment

Buying a new or off‑the‑plan Green Square apartment, you’ll usually sign with a 10% contract deposit — but the true deposit you need can range from about 5% to 20% of the price once lender rules, LMI and incentives are factored in. Your safe number depends on your income, LVR, whether you’re using a guarantor, and how conservative you want to be about valuation risk at settlement.

In practice, most Green Square buyers end up in one of four camps: 5% with schemes, 8–12% with LMI, 15–20% without LMI, or 0–5% plus a guarantor. This guide walks through each path, with numbers you can sanity‑check this week.

Start with clear numbers for your target Green Square apartment price and deposit.

1. Start with real Green Square numbers, not rules of thumb

1.1 What are typical new apartment prices in Green Square?

Recent sales and off‑the‑plan campaigns in Green Square/Zetland often sit in these ranges (illustrative only):

• 1‑bed: $750,000–$900,000
• 2‑bed: $900,000–$1,200,000
• 3‑bed / larger: $1,250,000+

For decision‑making, it’s better to work with a specific target price. Let’s use $900,000 as a common 1–2 bed benchmark for examples.

1.2 The two different “deposits” you need to think about

You actually have two separate deposit concepts:

1. Contract deposit – what you pay the developer/agent when you exchange. Commonly 10% of the price for new/off‑the‑plan.
2. Loan deposit / contribution – the amount of your own money (or equity/guarantor) that sits ahead of the bank at settlement, which drives your LVR and whether you pay LMI.

They don’t have to be the same number. For example, you might:

• Pay a 10% contract deposit upfront, but
• Reach settlement with a 12% or 15% total contribution once you’ve saved more, used a scheme, or restructured your loans.

1.3 Quick answer: realistic deposit ranges at Green Square price points

For a $900,000 new Green Square apartment, total contribution paths typically look like:

*LMI amounts are indicative only; lenders price differently and can change at any time.

The rest of this guide unpacks how to decide which path is realistic and safe for you.

2. How lenders look at new Green Square and Zetland stock

2.1 Postcode and unit size policies

Many lenders treat some inner‑south postcodes and dense unit precincts as higher risk. That can mean:

• Lower maximum LVRs (e.g. 80–90% instead of 95%)
• Stricter rules on small units (e.g. <50–55m² internal area)
• Tighter shading of rental income for investors

Before you fall in love with a project, it’s worth having a broker check which lenders are willing to fund that specific building and at what LVR.

2.2 Off‑the‑plan and new build valuation risk

For off‑the‑plan, your lender will usually value the apartment near settlement, not at contract date. If the market softens or there’s discounting across the precinct, your valuation can come in short. The bank then lends against the lower of contract price or valuation.

Example:

• Contract price: $900,000
• Lender valuation at settlement: $850,000
• Bank willing to lend 90% of $850k = $765,000
• Required total contribution: $900,000 – $765,000 = $135,000 (15%)

If you only planned to contribute 10% ($90k), you now have a $45,000 gap to solve.

If you’re already committed, read /insights/green-square-valuation-short-at-settlement-options for detailed strategies.

2.3 APRA buffer and serviceability

Beyond the deposit, your loan must also pass serviceability. APRA expects banks to test whether you can afford your loan at an interest rate at least 3% higher than today’s actual rate.

For a $900k purchase at 90% LVR:

• Loan amount: $810,000
• If the actual rate is 6%, you’re tested at ~9%
• On a 30‑year P&I term, that’s stress‑tested at roughly $6,550+ per month (illustrative)

If you’re tight on income, sometimes it’s safer to:

• Buy slightly under budget
• Contribute a higher deposit to reduce the loan size
• Consider interest‑only for a defined period if it fits your risk profile (see the sibling piece on P&I vs IO for Green Square).