Understanding the Basics of Buying Your First House

Purchasing your first house in Queensland involves coordinating deposit requirements, government schemes, and loan structures that change depending on whether you choose an established home or a new build.

The decision between established and new determines which concessions apply, how much deposit you need, and whether you qualify for government grants. Queensland first home buyers purchasing an established house receive stamp duty relief but not the First Home Owner Grant, while those building or buying new can access both the grant and full duty concessions with no price cap.

Deposit Options for Queensland First Home Buyers

You can purchase with a 5% deposit under the Australian Government 5% Deposit Scheme if the property falls within the applicable price cap. For Queensland, the cap is $1,000,000 in Brisbane and regional centres, and $700,000 in other areas. Housing Australia guarantees the difference between your deposit and 20% of the property value, removing the need for Lenders Mortgage Insurance.

Applications are made through a participating lender, not directly through Housing Australia. The scheme works with both fixed and variable loan structures, though available features depend on the lender. Consider a buyer purchasing an established house in a Brisbane suburb at the median. With a 5% deposit under the scheme, they avoid LMI entirely and can access home loan options that include offset accounts or redraw, depending on the lender's product range.

If you have a 10% deposit saved, you may still require LMI unless the lender offers a low-deposit product or you meet specific criteria. Some lenders accept gifted deposits from immediate family, but the funds must be declared and documented during the application.

Queensland Stamp Duty Concessions for Established Homes

Queensland applies a first home concession on stamp duty for established homes, reducing the amount payable by up to $17,350 for properties valued up to $709,999. The concession phases out in $10,000 bands and reaches nil for properties at $800,000 or more.

Duty is not eliminated entirely under this concession. It reduces the total payable by the concession amount, but buyers still pay some duty unless the property value is very low. For contracts signed on or after 1 August 2026, at least one applicant must be an Australian citizen, permanent resident or specified foreign retiree.

In a scenario where a buyer purchases an established house valued at $680,000, the concession reduces duty by $17,350. The buyer still pays the balance of the duty calculated under the standard home concession rate. This differs from the treatment of new homes, where Queensland applies a full transfer duty concession with no price cap, reducing duty to nil on the residential land component.

First Home Owner Grant for New Homes Only

Queensland provides a $15,000 grant for new homes valued under $750,000 where the contract was signed from 1 July 2026. The grant does not apply to established homes.

The grant was $30,000 for eligible contracts signed between 20 November 2023 and 30 June 2026. Buyers who signed contracts during that period received the higher amount. The grant is paid after settlement and occupancy conditions are met, and is typically paid to the buyer's solicitor or conveyancer to be applied toward settlement costs or released to the buyer.

If you are considering a new build or house-and-land package, the combination of the $15,000 grant and full stamp duty concession can reduce upfront costs substantially compared to purchasing an established home at the same price point.

Preparing Your First Home Loan Application

Lenders assess your application based on income, existing debts, living expenses, and credit history. Pre-approval gives you a conditional commitment from a lender before you make an offer, which helps clarify your budget and strengthens your position when negotiating.

Pre-approval is not a guarantee. It is conditional on the property valuation, your financial position remaining unchanged, and final credit assessment. Most pre-approvals are valid for three to six months, depending on the lender.

You will need to provide payslips, tax returns if self-employed, bank statements showing savings history, and identification. If you are using a gifted deposit, a signed statutory declaration from the person providing the gift is required, confirming the funds are a genuine gift and not a loan. Lenders also review your spending patterns over the past three to six months to assess your ability to meet repayments.

Fixed, Variable and Split Loan Structures

A variable rate loan allows you to make extra repayments without penalty and typically includes an offset account, which reduces the interest charged by offsetting your savings balance against the loan balance.

A fixed rate loan locks in the rate for a set period, usually one to five years, providing certainty over repayments during that period. Fixed loans generally restrict extra repayments to a set annual limit and do not offer offset accounts. Break costs may apply if you repay the loan or refinance before the fixed term ends.

A split loan combines both structures, allowing you to fix a portion of the loan while keeping the remainder variable. This approach provides some rate certainty while retaining flexibility on the variable portion. We regularly see first home buyers split their loan 50/50 or 60/40 depending on their preference for stability versus flexibility.

How Lenders Mortgage Insurance Affects Your Loan

Lenders Mortgage Insurance is a one-off premium charged when your deposit is below 20%. The premium is paid by you but protects the lender if you default. It is typically added to the loan balance rather than paid upfront, increasing the total amount borrowed.

LMI costs vary based on the deposit size and loan amount. A buyer borrowing 95% of the property value pays a higher premium than a buyer borrowing 90%. The premium is non-refundable, even if you refinance or sell the property shortly after purchase.

Under the Australian Government 5% Deposit Scheme, LMI is removed entirely because Housing Australia provides the guarantee. This makes the scheme particularly valuable for buyers who have saved a 5% deposit but cannot reach the 20% threshold needed to avoid LMI under a standard loan.

Choosing Between Established and New in Queensland

The choice between an established house and a new build depends on your budget, location preferences, and access to government concessions.

Established homes are available across a wider range of suburbs, often in locations closer to schools, transport and employment. Buyers receive the Queensland first home concession on stamp duty, which reduces the amount payable, but do not qualify for the First Home Owner Grant. Established homes typically settle within 30 to 60 days of contract exchange, allowing you to move in sooner.

New homes and house-and-land packages qualify for both the $15,000 grant and full stamp duty concession with no price cap. Construction timelines vary, and settlement occurs after the home is completed, which may be six to twelve months or longer from the contract date. Buyers should factor holding costs such as rent during construction into their budget.

Call one of our team or book an appointment at a time that works for you. We assess your deposit, review which schemes apply to your circumstances, and structure your application to align with your choice of property and lender.

Frequently Asked Questions