Adelaide New Build Finance

How Much Deposit Do I Need To Build A New Home In Adelaide?

Deposit rules for SA construction loans, First Home Owner Grant eligibility, and the deposit-plus-progress-payment math most buyers miss.

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By George Giannakakis · B.Arch.Studies · M.Arch (UniSA) · RLA300580

Last reviewed: 28 February 2026 · How we research

How construction loans work in SA

A construction loan is a staged-drawdown loan: the lender releases funds to the builder at fixed stages (slab, frame, lock-up, fixings, completion). You pay interest only on drawn funds during construction. Deposit is typically 20% of total project value including land. LMI unlocks 10% deposit but adds $8k-$25k premium depending on loan size.

FHOG in SA

The First Home Owner Grant in South Australia is $15,000 for new builds under $650k (contract price + land value combined). Applies to first home owners buying or building a brand new home. Cannot be applied to KDRs or established property. Apply through your lender at loan settlement. Combine with the First Home Buyer Stamp Duty concession for further savings.

The progress-payment cash flow trap

Some Adelaide builders schedule progress payments that exceed the value of work completed at that stage - so at frame stage they might invoice 25% of contract when only 15% of work is done. This is legal under some contracts but leaves you exposed if the builder fails. Ask for a payment schedule that matches HBCF-recommended stage percentages, and never pay ahead of physical progress.

Extra cash-in-hand you need beyond the deposit

Stamp duty on land (5.5% over $500k in SA), council + PlanSA fees ($2k-$6k), water headworks ($5k-$12k), driveways / landscaping / fences typically excluded from construction loan ($15k-$40k), moving costs, and 3-6 months of contingency for variations. Realistic cash-in-hand beyond deposit: $35k-$80k.

Frequently asked

Can I build a home in Adelaide with a 5% deposit?

Very rarely - only through First Home Guarantee schemes, some family-guarantor structures, or specific lender products for medical/legal professionals. Standard construction loans require 10% deposit with LMI or 20% without.

Does the First Home Owner Grant apply to KDRs in SA?

No. FHOG in SA applies only to brand-new dwellings (new home + land package, spec home, or KDR where the total contract price is under $650k AND you're a first home buyer). A KDR on land you already own with an existing home usually disqualifies you.

Can I use First Home Super Saver Scheme in SA?

Yes. FHSSS is federal and available in every state. You can withdraw up to $50,000 of voluntary super contributions to fund your first home deposit. Combine with FHOG in SA for maximum leverage. Apply through the ATO before signing your contract.

How much stamp duty do I pay on a new build in Adelaide?

You only pay stamp duty on the LAND component, not the build. On a $300k block that's ~$13,000. On a $500k block ~$25,000. First home buyer stamp duty concessions apply for eligible buyers under specific thresholds - check RevenueSA for current 2026 brackets.