Buying your first house in Queensland means choosing between a standalone home or a house and land package, both of which open up different deposit options and grant opportunities compared to apartments or townhouses.
The path into a house is usually a bit more forgiving than most people expect, especially if you understand which combination of deposit schemes and state grants apply to your situation.
The Queensland grant that expires soon
Queensland's $30,000 first home buyer grant applies to new homes valued under $750,000 and runs until 30 June 2026. This is one of the larger state grants in the country and applies to both house and land packages and newly built homes.
If you are buying an established house, the grant does not apply, but you still qualify for a stamp duty concession of up to $700,000 with zero duty payable. On new builds, the full concession from May last year can reduce duty to nil, which stacks with the $30,000 grant if you are building or buying new.
Consider a buyer looking at a house and land package in Caboolture priced around the median. With the $30,000 grant and no stamp duty on the new build, the buyer's upfront costs drop significantly, making a 5% deposit more realistic without needing a large cash buffer for settlement.
How the Australian Government 5% Deposit Scheme changed everything
The Scheme was expanded from October last year with no income caps and no place limits. You can now buy with a 5% deposit without paying Lenders Mortgage Insurance (LMI), which previously added thousands to the cost of a low deposit loan.
LMI on a house purchased with a 5% deposit used to add anywhere from $10,000 to $25,000 depending on the loan size. The scheme removes that cost entirely, which means your 5% deposit goes further and your borrowing capacity is not eaten up by an insurance premium.
This applies to both new and established homes, so whether you are buying a house in Logan or building in Redlands, the scheme is available.
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Deposit options that actually work
A 5% deposit is now the entry point for most first home buyers using the scheme, but a 10% deposit opens up more lender choice and sometimes slightly lower interest rates. Either way, the deposit can come from genuine savings, the First Home Super Saver Scheme, or a gift from a parent.
The First Home Super Saver Scheme lets you contribute up to $15,000 per financial year into super and withdraw up to $50,000 total for your deposit. You pay 15% tax on contributions instead of your marginal rate, which for most first home buyers means saving several thousand dollars compared to an ordinary savings account.
Gifted deposits are accepted by most lenders as long as the gift comes from an immediate family member and is declared upfront. The lender will ask for a statutory declaration confirming the gift does not need to be repaid, but once that is provided, it is treated the same as savings you built yourself.
In our experience, buyers who combine genuine savings with a super withdrawal and a small family gift often reach the 5% threshold faster than they expected, especially when the Queensland grant is factored in.
Fixed or variable for your first home loan
Your first decision on the loan itself is whether to lock in a fixed interest rate or stay on a variable rate. A fixed rate gives you certainty for one to five years, which helps with budgeting, but you lose access to an offset account and you cannot make extra repayments beyond a small annual cap without penalty.
A variable interest rate moves with the market, which means your repayments can go up or down, but you get full access to features like an offset account and unlimited extra repayments. If you plan to put your savings into an offset or pay down the loan faster, variable usually makes more sense.
Some buyers split the loan, fixing part for security and leaving part variable for flexibility. This works well if you want some budget certainty but also want to chip away at the loan when you have extra cash.
What lenders actually look at when you apply
Your home loan application is assessed on three things: your income, your living expenses, and your existing debts. Lenders calculate your borrowing capacity by taking your after-tax income, subtracting your living expenses and debt repayments, and applying a buffer to make sure you could still afford the loan if rates went up.
Living expenses are often the sticking point. Lenders use either your actual spending from bank statements or a benchmark figure called the Household Expenditure Measure, whichever is higher. If your spending is all over the place or you have a lot of buy-now-pay-later accounts, it can reduce what you can borrow.
Getting pre-approval before you start house hunting gives you a clear borrowing limit and shows sellers you are ready to move. Pre-approval is valid for three to six months depending on the lender, and it locks in your borrowing capacity even if your circumstances change slightly during that time.
Ipswich and Moreton Bay houses under the guarantee
Both Ipswich and Moreton Bay have a strong supply of standalone houses within reach of first home buyers using the guarantee. Ipswich in particular has a mix of established homes and new estates, with the Springfield corridor continuing to attract buyers looking for newer builds close to schools and transport.
Moreton Bay covers a wide area from Redcliffe through to Narangba, and you will find both character homes on larger blocks and new house and land packages depending on which pocket you are looking in. The benefit of buying a house in these areas is that land size is usually more generous than closer to Brisbane, which appeals to buyers planning to stay long term.
If you are looking at a new build in either area, you can combine the Queensland $30,000 grant with the Australian Government 5% Deposit Scheme, which brings your deposit requirement down and removes LMI. That combination is one of the reasons outer Brisbane suburbs continue to move quickly for first home buyers.
When to talk to a mortgage broker
Most buyers reach out to a broker once they have started looking at properties, but the earlier you start the conversation, the more time you have to fix any issues with your borrowing capacity or savings position. A broker can also help you work out which grant and deposit combination suits your situation, especially if you are deciding between new and established.
If you are buying a house in Queensland and want to understand your borrowing limit, work through your deposit options, or get pre-approval sorted, call one of our team or book an appointment at a time that works for you.
