Getting Into Brisbane's Property Market with a Smaller Deposit
Buying your first home in Brisbane no longer requires a 20% deposit. Under the Australian Government 5% Deposit Scheme, eligible buyers can purchase with a 5% deposit without paying Lenders Mortgage Insurance.
The scheme applies to properties valued up to $1,000,000 across Brisbane and surrounding regional centres, with a $700,000 cap for other Queensland areas. Applications go through participating lenders rather than directly to Housing Australia. Whether you qualify depends on your income, expenses, and borrowing capacity, not on annual place limits or income caps.
Consider a buyer looking at a unit in New Farm. With a 5% deposit, they would need access to upfront funds for the deposit, legal fees, building and pest inspections, and settlement costs. The deposit portion is covered by the scheme's framework, but buyers still need to demonstrate genuine savings and stable income to meet serviceability requirements.
Queensland Stamp Duty Concessions for New and Established Homes
Queensland first home buyers receive different stamp duty treatment depending on whether they purchase a new or established home.
For established homes, the first home concession reduces transfer duty by up to $17,350 on properties valued up to $709,999. The concession phases out across $10,000 value bands and reaches nil at $800,000 or above. Duty is reduced but not eliminated entirely under this concession. For a property valued at $650,000 in Ashgrove, the buyer would still pay some transfer duty after the concession is applied.
For new homes, the first home new home concession removes transfer duty entirely on the residential land component, with no price cap. A buyer purchasing a newly built townhouse in Coorparoo valued at $850,000 would pay no transfer duty on the land component of that purchase. The same full concession applies to vacant land purchases, again with no price cap, for buyers intending to build.
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First Home Owner Grant Eligibility in Queensland
The Queensland First Home Owner Grant is $15,000 for new homes valued under $750,000, applicable to contracts signed from 1 July 2026. The grant does not apply to established homes.
To qualify, at least one applicant must be an Australian citizen, permanent resident, or specified foreign retiree for agreements entered into on or after 1 August 2026. Buyers must occupy the home as their principal place of residence for at least 12 continuous months starting within 12 months of settlement.
A buyer purchasing a newly constructed house and land package in Narangba valued at $720,000 could claim the $15,000 grant and benefit from the full stamp duty concession on the land component. The grant and concession can be used together and, in most cases, alongside the 5% Deposit Scheme.
Fixed Rate or Variable Rate for Your First Home Loan
Your first home loan will be structured as a fixed rate, variable rate, or a combination of both.
A variable interest rate moves up or down in response to market conditions and Reserve Bank cash rate changes. This loan type typically includes features such as an offset account, redraw facility, and the ability to make extra repayments without penalty. These features provide flexibility if your income or expenses change.
A fixed interest rate locks in a set rate for a defined period, typically one to five years. Your repayments remain the same during that period regardless of market movements. Fixed loans generally restrict extra repayments and do not include offset accounts. Break costs may apply if you repay or refinance before the fixed term ends.
Some buyers split their loan, fixing a portion and leaving the remainder variable. This approach provides rate certainty on part of the debt while maintaining access to flexible features on the variable portion. Whether this structure suits your circumstances depends on your income stability, risk tolerance, and how much flexibility you expect to need over the first few years of ownership.
Home Loan Application and Pre-Approval for Brisbane Buyers
Applying for a home loan involves providing proof of income, savings history, identification, and a breakdown of your current expenses. Lenders assess your borrowing capacity based on your ability to service the loan at current variable rates, plus a buffer.
Pre-approval gives you an indication of how much you can borrow before you start shopping for property. It is not a guarantee, and final approval depends on the lender assessing the property you intend to purchase. Pre-approval typically lasts between three and six months depending on the lender.
In a scenario where a buyer has been renting in Woolloongabba and saving consistently over two years, pre-approval allows them to attend inspections and make offers with confidence. The application process includes a credit check, verification of employment, and an assessment of existing debts such as car loans or credit cards. Once pre-approved, the buyer can move quickly when they find a suitable property, particularly in areas like Stones Corner or Carina where stock turnover can be high.
Using Your Superannuation to Boost Your Deposit
The First Home Super Saver Scheme allows eligible buyers to make voluntary contributions into their superannuation fund and apply to release up to $50,000 toward a home deposit. Up to $15,000 from any one financial year can be released.
Concessional contributions are taxed at 15% rather than at your marginal income tax rate, which can provide a tax advantage if you are on a higher income. You need to obtain a determination from the Australian Taxation Office before signing a purchase contract.
Not every buyer benefits from this scheme. If your income is low or you need access to funds quickly, contributing to superannuation and then applying for release may not suit your timeline. Seek advice from a licensed specialist to confirm whether the scheme aligns with your circumstances and deposit strategy.
Call one of our team or book an appointment at a time that works for you. We work with first home buyers across Brisbane and can walk you through deposit options, loan structures, and the application process in plain language.
Frequently Asked Questions
Can I buy a home in Brisbane with a 5% deposit?
Yes. The Australian Government 5% Deposit Scheme allows eligible first home buyers to purchase with a 5% deposit without paying Lenders Mortgage Insurance. The scheme applies to properties valued up to $1,000,000 in Brisbane and regional centres, with applications made through participating lenders.
Do I pay stamp duty as a first home buyer in Queensland?
It depends on whether you buy a new or established home. For new homes, the first home new home concession removes transfer duty entirely on the land component with no price cap. For established homes, a concession reduces duty by up to $17,350 on properties valued up to $709,999, phasing out at $800,000.
How much is the Queensland First Home Owner Grant?
The grant is $15,000 for new homes valued under $750,000, applicable to contracts signed from 1 July 2026. The grant does not apply to established homes and requires you to occupy the property as your principal place of residence for at least 12 continuous months.
Should I fix or keep my home loan variable?
A variable rate provides flexibility with features like offset accounts and extra repayments, while a fixed rate locks in your repayment amount for a set period. Some buyers split their loan to combine rate certainty with flexibility, depending on their income stability and need for loan features.
What is pre-approval and how long does it last?
Pre-approval gives you an indication of how much you can borrow before you start looking at properties. It typically lasts between three and six months and allows you to move quickly when you find a suitable home, though final approval depends on the lender assessing the specific property.
