When to Buy With No Deposit in Queensland

Can You Still Buy a Home With No Deposit?

You can purchase a property with no genuine savings deposit through the Australian Government 5% Deposit Scheme if you are a first home buyer, or with as little as 2% if you are an eligible single parent or legal guardian, with Housing Australia providing a guarantee to the lender. The scheme has no income caps and no annual place limits, making it accessible for many Queensland buyers who meet the eligibility criteria.

In Queensland, the property price cap is $1,000,000 in Brisbane, Gold Coast and Sunshine Coast, and $700,000 in other areas. Both the purchase price and the lender's valuation must fall at or below these caps. Applications are made through a participating lender, not directly to Housing Australia.

Consider a buyer purchasing in Kelvin Grove, close to QUT and the Royal Brisbane Hospital precinct. At the Brisbane cap, a 5% deposit would require $50,000 in genuine savings. Under the scheme, the buyer contributes 5% and Housing Australia guarantees the remaining 15% to reach the combined 20% threshold without lenders mortgage insurance being charged.

How the 5% Deposit Scheme Works for Queensland Buyers

Eligible first home buyers can purchase with a deposit of as little as 5% of the property value, while eligible single parents or legal guardians can purchase with as little as 2%. The guarantee provided by Housing Australia replaces the need for LMI, which would otherwise apply on loans with an LVR above 80%.

Applications are processed through a panel of participating lenders. The panel comprised 3 major bank lenders and 28 non-major lenders at the time of the October 2025 expansion, with Housing Australia expanding the panel through 2026. Variable rate, fixed rate and split loan structures may be available depending on the lender you work with.

The scheme does not impose income thresholds, which means higher-earning first home buyers in Brisbane's inner suburbs or along the Gold Coast can access the guarantee provided their chosen property falls within the applicable cap. This differs from Help to Buy, which applies income limits and is structured as a shared equity arrangement rather than a deposit guarantee.

When Single Parents Can Access a 2% Deposit

Single parents or legal guardians can purchase with a deposit of as little as 2% of the property value under the Australian Government 5% Deposit Scheme. Housing Australia guarantees up to 18% of the property value for eligible single parents, bringing the combined deposit and guarantee to 20%.

In a scenario where a single parent is purchasing in Nundah, within reach of Westfield Chermside and the airport employment corridor, a property at $700,000 would require a $14,000 deposit at 2%. The lender assesses serviceability in the usual way, including rental income if applicable, but the reduced deposit threshold allows the buyer to enter the market while retaining savings for moving costs, furniture or emergency funds.

Single parents are also eligible for the first home buyer stamp duty concessions available in Queensland. For contracts signed on or after 1 May 2025, a full transfer duty concession applies with no price cap on new homes, reducing duty to nil on the residential land component. For established homes, the maximum first home concession deduction is $17,350 for properties valued up to $709,999, with the concession phasing out in $10,000 property value bands and reaching nil for properties valued at $800,000 or more.

How Lenders Assess Applications With Minimal Deposit

APRA requires all ADIs to assess new borrowers' capacity to service a home loan at an interest rate that is at least 3.0 percentage points above the loan product rate. This serviceability buffer applies to all new home loan applications, including those made under the 5% Deposit Scheme.

As at the compilation date of this brief, the most recent APRA macroprudential policy confirmation is the 28 May 2026 announcement, at which the buffer was confirmed at 3.0 percentage points. The buffer applies to new borrowers only and is designed to ensure borrowers can continue to meet repayments if interest rates rise.

Lenders also apply debt-to-income lending limits. APRA activated a DTI lending limit on 27 November 2025, effective from 1 February 2026, applying to all ADIs. Each ADI may lend, measured on a quarterly basis, up to 20 per cent of new owner-occupier loans and up to 20 per cent of new investor loans to borrowers with a total DTI ratio of six times or greater. These limits apply separately to owner-occupier and investor lending and apply to new lending only.

For buyers applying with a minimal deposit, the focus shifts to demonstrating stable income, manageable existing debts and a clear repayment history. If your borrowing capacity is constrained by a high DTI ratio or limited income history, working with a broker who has access to multiple participating lenders can increase your chances of approval.

Combining the Deposit Scheme With State Concessions

State and territory grants and stamp duty concessions can generally be used alongside both schemes, though restrictions vary by jurisdiction and program. In Queensland, first home buyers can access the $15,000 First Home Owner Grant on new homes and combine it with the 5% Deposit Scheme.

The QLD FHOG is $15,000 for new homes valued under $750,000 for contracts signed from 1 July 2026. The grant does not apply to established homes. If you are purchasing a new townhouse in Springfield Lakes or an apartment in Maroochydore under the applicable cap, the grant can be used to cover part of your 5% deposit or retained for other upfront costs such as legal fees and building inspections.

For established homes, the stamp duty concession still applies. For contracts signed on or after 9 June 2024, the maximum first home concession deduction is $17,350 for properties valued up to $709,999. This reduces the amount of transfer duty payable, though it does not eliminate duty entirely as it does in some other states.

Buyers should confirm their eligibility for both the federal scheme and the state concessions before exchanging contracts. For agreements entered into on or after 1 August 2026, at least one applicant must be an Australian citizen, permanent resident or specified foreign retiree.

When Family Guarantee Might Be an Alternative

Under APS 112, an ADI may reduce its credit risk capital requirement where the exposure is covered by eligible LMI. Some lenders also accept a family guarantee as an alternative to LMI, where a parent or close family member uses equity in their own property to guarantee part of the loan.

A family guarantee allows the buyer to borrow up to 100% of the purchase price plus costs without paying LMI. The guarantor does not make repayments on the loan but provides security over a portion of their own property. Once the buyer has repaid enough of the loan to reach an 80% LVR, the guarantee can typically be removed.

This option is not limited to first home buyers and can be used for home loans on established properties or new builds in any location. It may suit buyers who do not meet the first home buyer definition under the 5% Deposit Scheme but have access to family support. The guarantor should obtain independent legal and financial advice before entering into the arrangement, as their property is at risk if the borrower defaults.

Using Superannuation Through the First Home Super Saver Scheme

The FHSS Scheme allows first home buyers to make voluntary concessional and non-concessional contributions into their superannuation fund and apply to release eligible amounts toward a home deposit. Up to $15,000 of personal contributions from any one financial year can be released, with a total cap of $50,000.

Concessional contributions are taxed at 15% rather than at marginal income tax rates. This can provide a tax advantage for buyers in higher income brackets who are accumulating a deposit over multiple years. Buyers generally need to obtain a determination from the ATO before signing a purchase contract.

The FHSS Scheme can be used alongside the 5% Deposit Scheme. A buyer who has saved $50,000 through superannuation contributions could use that amount to meet the 5% deposit requirement on a property at the Brisbane cap, or to meet the 2% threshold as a single parent and retain the remainder for other costs.

Call one of our team or book an appointment at a time that works for you. We can assess your eligibility for the 5% Deposit Scheme, compare participating lenders and help you structure your application to meet APRA serviceability requirements and state concession criteria.

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