Understanding the Basics of First Home Buyer Grants in QLD

Queensland's First Home Owner Grant dropped to $15,000 on 1 July 2026 for eligible contracts signed from that date.

The change marks the end of the temporary $30,000 grant that ran from November 2023 through June 2026. If you're planning to buy your first home in Queensland, understanding what support remains available and how to combine it with federal schemes can make a genuine difference to your deposit requirements and upfront costs.

What the Queensland First Home Owner Grant Covers Now

The grant provides $15,000 toward the purchase of a new home valued under $750,000. New homes include newly constructed dwellings, substantially renovated homes, and home and land packages where the build contract is signed as part of the purchase. The grant does not apply to established homes, regardless of their age or condition.

You must be at least 18 years old, an Australian citizen or permanent resident, and you and your partner cannot have previously owned or co-owned residential property in Australia. The home must become your principal place of residence within 12 months of settlement and remain so for at least 12 consecutive months.

Consider a buyer purchasing a house and land package in Springfield Lakes. The package is valued at $680,000, which sits comfortably under the $750,000 cap. The buyer applies for the $15,000 grant through their conveyancer at settlement, and the funds are used to reduce the amount borrowed. The grant doesn't form part of the deposit for lending purposes, but it does lower the total loan amount, which in turn reduces interest costs over the life of the loan.

Stamp Duty Concessions for First Home Buyers in Queensland

Queensland offers transfer duty concessions separately from the grant, and these apply to both new and established homes depending on the purchase price.

For established homes, no transfer duty applies on properties valued up to $700,000. A concession applies on properties between $700,000 and $800,000, phasing out entirely at the upper threshold. For new builds, a full transfer duty concession applies with no price cap on residential land from 1 May 2025. A partial concession is available on new homes priced between $500,000 and $550,000.

In a scenario where a buyer purchases an established unit in Redcliffe for $650,000, they pay no transfer duty at all. That saving, which would otherwise amount to several thousand dollars, can be redirected toward furniture, moving costs, or held as a buffer for unexpected expenses in the first months of ownership.

How the Australian Government 5% Deposit Scheme Works

The 5% Deposit Scheme allows eligible first home buyers to purchase with a 5% deposit without paying lenders mortgage insurance. Housing Australia guarantees the difference between the buyer's deposit and 20% of the property value, which removes the need for LMI and lowers the upfront cash required.

No income caps apply, and there are no annual limits on the number of places available. The scheme operates through a panel of 31 participating lenders, including three major banks and 28 non-major lenders. Applications are made directly through a participating lender, not through Housing Australia.

For Queensland, the property price cap under the scheme is $1,000,000 in Brisbane and higher regional caps apply in areas outside the capital. Single parents or legal guardians can apply with a 2% deposit under the same program.

The scheme can be combined with the Queensland First Home Owner Grant and stamp duty concessions. A buyer purchasing a new home valued at $720,000 in Ipswich could use the 5% deposit scheme, receive the $15,000 grant, and benefit from the full transfer duty concession on new builds. The combination reduces both the deposit required and the settlement costs significantly.

Choosing Between Fixed and Variable Interest Rates

Once you've secured your deposit and concessions, the structure of your home loan affects your repayments and flexibility. A fixed interest rate locks in your repayment amount for a set period, usually between one and five years. A variable interest rate moves with the market, which means repayments can rise or fall depending on the Reserve Bank's decisions.

Fixed rates provide certainty, which can be helpful when budgeting in the first years of ownership. Variable rates often come with features like an offset account or redraw facility, which allow you to reduce interest charges by parking savings in a linked account or accessing extra repayments when needed.

Some buyers choose to split their loan, fixing a portion and leaving the remainder variable. This approach balances certainty with flexibility, though it does add complexity to the loan structure. Your choice depends on your income stability, your tolerance for rate changes, and whether you're likely to make extra repayments.

What Happens After You Apply for Pre-Approval

Getting pre-approval before you start looking at properties gives you a clear picture of your borrowing capacity and shows sellers you're a serious buyer. Pre-approval involves a lender assessing your income, expenses, debts, and deposit to determine how much they're willing to lend.

Pre-approval is usually valid for three to six months, depending on the lender. During that time, you can make offers with confidence, knowing your finance is largely in place. Once you find a property and your offer is accepted, the lender completes a full assessment, which includes a valuation of the property and a final review of your financial position.

If your circumstances change between pre-approval and final approval, such as a change in employment or an increase in debts, the lender will reassess. Keeping your financial position stable during the search period helps avoid delays or complications at settlement.

Combining State and Federal Support

Queensland buyers can layer the state grant, stamp duty concessions, and the federal 5% deposit scheme to reduce upfront costs. The $15,000 grant applies only to new homes, but the stamp duty concessions apply more broadly, covering both new and established properties within the relevant price thresholds.

The 5% deposit scheme is available for all property types, provided the property falls within the price cap and is intended as your principal place of residence. You cannot combine the scheme with the federal Help to Buy program, but you can use it alongside state concessions.

In our experience, buyers who take the time to understand which concessions apply to their specific property type and price range end up with a clearer picture of what they can afford and what their upfront costs will be. The complexity comes from the fact that not all concessions apply to all properties, so working through the detail before you commit to a property type or location is worthwhile.

If you're ready to talk through your options or you'd like to confirm what you're eligible for based on your situation, call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions