Top 10 First Home Buyer QLD Questions Answered

Buying your first home is exciting, but it can also feel overwhelming. There’s so much to learn, and you probably have dozens of questions running through your mind. Should you buy a new home or an older one? How much do you really need to save? What government help is available? These are all normal questions that every First Home Buyer asks.

The good news is that Queensland offers some of Australia’s most generous government support for First Home Buyers. From cash grants to stamp duty savings and special loan schemes, there are many ways the government can help you get into your first home sooner. Understanding these programs and how they work together can save you tens of thousands of dollars and help you achieve home ownership years earlier than you thought possible.

In this guide, we’ll answer the 10 most common questions that First Home Buyers ask about purchasing property in Queensland. Each answer connects directly to the government incentives and programs available to you. Whether you’re just starting to think about buying or you’re ready to make an offer, this guide will help you understand exactly what support is available and how to use it.

Let’s dive into the questions that matter most to First Home Buyers in Queensland, so you can make informed decisions and take advantage of every benefit available to you.

1. How much deposit do I really need to save to buy a house?

Many people think they need to save 20% of a home’s price before they can buy. That’s a lot of money—$100,000 for a $500,000 home! The truth is, you can buy with much less thanks to the Australian Government 5% Deposit Scheme.

5% Deposit Scheme

The 5% Deposit Scheme lets eligible First Home Buyers purchase a property with just a 5% deposit. If you’re a single parent or guardian, you only need 2%. Even better, the government guarantees part of your loan, so you don’t have to pay Lenders Mortgage Insurance (LMI). LMI can cost tens of thousands of dollars, so avoiding it is a huge saving.​

For example, if you want to buy a $600,000 home in Brisbane, you would only need a $30,000 deposit (5%) instead of $120,000 (20%). That’s a savings of $90,000 you don’t have to save upfront.

NEW Help to Buy Scheme

The Australian Government has just launched a new option called the Help to Buy Scheme on December 5, 2025. This shared equity scheme is designed for buyers who have saved what they can but are still short of being able to purchase a home.​

Example: On an $800,000 home through Help to Buy, you would need just a $16,000 deposit (2%), obtain a loan for $544,000, and the government contributes $240,000. This dramatically reduces both your upfront deposit and your ongoing loan repayments compared to traditional financing.

Queensland’s First Home Buyers Grant

The First Home Buyers grant can also help boost your savings. In Queensland, eligible First Home Buyer QLD applicants can receive up to $30,000 toward buying or building a brand new home valued under $750,000. This grant money goes directly toward your purchase, making it even easier to afford your first home.​

Combining Multiple Schemes

When you combine these government programs strategically, buying becomes incredibly accessible:

Option 1: 5% Deposit Scheme + First Home Buyers Grant

• 5% deposit on a $600,000 new home: $30,000
• Queensland grant: $30,000
• Total contribution: $60,000
• Loan needed: $540,000

Option 2: NEW Help to Buy + First Home Buyers Grant

• 2% deposit on a $600,000 new home: $12,000
• Government equity contribution (40% for new home): $240,000
• Queensland grant: $30,000
• Loan needed: $318,000
• Your total upfront cost: Just $12,000!

The newly launched Help to Buy option can dramatically reduce both your deposit requirements and your mortgage size, making home ownership achievable much sooner.

2. How do banks decide how much money I can borrow?

Banks look at several things when deciding how much to lend you. Understanding what they look for helps you prepare better and increases your chances of approval.

Your income is the first thing banks check. They want to see that you have a steady job and regular pay. If you’re self-employed, they’ll look at your business income over the past two years. The more stable and reliable your income, the better.

Your expenses matter too. Banks use something called the Household Expenditure Measure to estimate what you spend on food, transport, bills, and other living costs. They also look at your actual spending by reviewing your bank statements. If you spend a lot on entertainment or have expensive habits, it might reduce how much you can borrow.​

Existing debts play a big role. Credit cards, personal loans, car loans, and even HECS-HELP debts all count against you. Banks assume you’ll use your full credit card limit, even if you don’t. For example, if you have a $10,000 credit card limit but only use $1,000, banks still treat it like you’re using all $10,000.​

Your credit score shows banks how responsible you are with money. If you’ve missed payments or defaulted on loans in the past, it will hurt your chances. Always pay bills on time and check your credit report before applying.

Banks also apply an interest rate buffer—usually 3% above the current rate—to make sure you can still afford repayments if interest rates go up. This is called a serviceability test, and it protects both you and the bank.​

The good news for First Home Buyer QLD applicants is that as of October 1, 2025, there are no income caps for the 5% Deposit Scheme. This means more people can qualify regardless of how much they earn, as long as they meet the other lending criteria.

3. How much can I actually borrow based on my income?

This depends on your individual circumstances. Every person’s situation is different, which is why there’s no one-size-fits-all answer.

Banks typically assess what’s called your debt-to-income ratio. This is how much you owe compared to what you earn. Most banks prefer this ratio to be under 6 times your annual income. So if you earn $80,000 per year, you might be able to borrow up to $480,000, depending on your other debts and expenses.​

• Your borrowing capacity also depends on:
• How much deposit you have saved
• Your living expenses and lifestyle
• Other debts like credit cards or personal loans
• The type of property you’re buying
• Current interest rates

Online mortgage calculators can give you a rough idea, but they won’t match the detailed assessment that lenders perform. Every bank has slightly different criteria and uses different calculators, so you might be approved for different amounts at different banks.​

The best way to know exactly how much you can borrow is to get pre-approval from a mortgage broker or lender. Pre-approval gives you a conditional approval for a loan amount based on your financial situation. It’s not a guarantee, but it’s much more accurate than guessing.​

One important tip: just because a bank approves you for a certain amount doesn’t mean you should borrow the maximum. Always leave yourself a buffer for unexpected expenses, interest rate rises, or life changes like starting a family or changing jobs. Borrowing less than your maximum gives you financial breathing room and reduces stress.​

Remember, with programs like the First Home Buyers Grant and stamp duty concessions available to First Home Buyers in Queensland, you’ll need to borrow less money overall. These savings reduce your loan amount and make repayments more manageable.

4. What are the “hidden costs” I need to budget for?

Many First Home Buyer Queensland applicants focus only on the deposit and property price. Then they’re surprised when other costs appear at settlement. These extra costs can add up to thousands of dollars, so it’s important to budget for them early.

Here are the main costs beyond your deposit:

Legal and conveyancing fees ($1200–$3,000): A conveyancer or solicitor handles the legal paperwork for your purchase. They check the contract, search property titles, and make sure everything is registered correctly.​

Building and pest inspections ($400–$800): These inspections are crucial in Queensland’s climate. They check for structural problems, termites, and other issues that could cost thousands to fix later. Never skip these inspections to save money – it’s one of the biggest mistakes First Home Buyers make.​

Loan application and establishment fees ($200–$600): Most lenders charge fees to set up your home loan. Some also charge valuation fees to assess the property’s worth.​

Mortgage registration fees ($200–$400): When you take out a home loan, it must be registered with the Queensland Government. This costs money.

Council and water rate adjustments: When you buy a property, you’ll need to reimburse the seller for any rates they’ve paid in advance. This is usually calculated on settlement day.

Moving costs ($500–$3,000): Whether you hire professional movers or rent a truck, moving costs money. Don’t forget to budget for this.

Insurance: Home and contents insurance protects your biggest investment. You’ll need to set this up before settlement.​

Immediate repairs or renovations: Even new homes might need blinds, air conditioning, or landscaping. Older homes often need more work.

As a First Home Buyer QLD Stamp Duty may not apply to you if you meet certain conditions. For new homes, eligible First Home Buyers pay zero stamp duty regardless of price. For established homes under $700,000, you also pay no First Home Buyer Queensland stamp duty. This can save you up to $24,525, which helps offset other costs.​

It is recommended budgeting an extra 5-10% of your property’s purchase price to cover all these costs comfortably.​

5. Am I eligible for the $30,000 First Home Owner Grant?

The First Home Buyers Grant is one of the most valuable incentives available in Queensland. Currently, eligible applicants can receive $30,000 toward buying or building a new home. However, this enhanced amount is only available for a limited time.​

Key eligibility requirements:

You must be buying or building a brand new home that has never been lived in before. This is the most important rule. The grant doesn’t apply to established or existing homes, no matter how nice they are.​

The property must be valued at less than $750,000. This includes the land and home together. If the total value is exactly $750,000 or more, you don’t qualify.​

You must intend to live in the home as your main residence. You need to move in within 12 months of settlement and live there continuously. If you rent it out or don’t move in, you’ll lose the grant and may have to pay it back.​

You can’t have owned a home before in Australia. If you owned residential property on or after July 1, 2000, even if you never lived in it, you’re not eligible. The only exception is if you owned investment property before July 1, 2000, that you never lived in.​

You can’t have received a first home grant before in any Australian state or territory. The grant is a one-time benefit.​

You must be at least 18 years old and an Australian citizen or permanent resident. If applying with a spouse or partner, at least one of you must meet this requirement.​

Important timing:

The $30,000 amount applies to contracts signed between November 20, 2023, and June 30, 2026. For owner-builders, it applies if you lay foundations between these dates. After June 30, 2026, the First Home Buyer Grant amount drops back to $15,000.​

Application deadline:

You must apply within 12 months of completion. For buyers, this means 12 months after settlement. For builders, it’s 12 months after you receive your final inspection certificate. Missing this deadline is one of the most common mistakes—don’t let it happen to you.​

The great news is that you can combine this grant with other benefits like stamp duty concessions and the 5% Deposit Scheme. They all work together to help First Home Buyers get into the market.​

6. Should I get pre-approval before I start looking at homes?

Yes, absolutely! Getting pre-approval is one of the smartest moves you can make as a First Home Buyer. Here’s why it’s so important.

You’ll know exactly what you can afford. Pre-approval tells you the maximum amount a bank will lend you based on your income, debts, and expenses. This prevents you from wasting time looking at homes that are out of your budget.​

Real estate agents take you seriously. When agents see you have pre-approval, they know you’re a genuine buyer, not just browsing. In competitive markets, this can give you an edge over other buyers who haven’t done their homework.​

You can act quickly. The Queensland property market moves fast, especially for good homes in popular areas. If you find the perfect property, having pre-approval means you can make an offer immediately without waiting weeks for loan approval.​

You’ll discover problems early. Sometimes people discover credit issues or other problems during pre-approval. It’s better to find out early and fix these issues before you fall in love with a property.​

You’ll have time to shop around. Pre-approval gives you 3-6 months (depending on the lender) to find the right home without pressure. You can take your time and make a smart decision.​

Important tips about pre-approval:

Seek what’s called “fully assessed pre-approval” rather than basic approval. Fully assessed means the lender has thoroughly checked your finances. Basic pre-approval can be unreliable and doesn’t guarantee final approval.​

Pre-approval is not a guarantee. The final approval happens after you find a property and the bank values it. The bank needs to make sure the property is worth what you’re paying for it.​

Don’t make big financial changes after pre-approval. Buying a car, opening new credit cards, or changing jobs can affect your final approval. Wait until after settlement to make major financial moves.

For First Home Buyers, working with a mortgage broker who understands government incentives is valuable. They can help you access programs like the First Home Buyers Grant and ensure you’re getting the best deal.

7. Do I have to pay stamp duty as a First Home Buyer in Queensland?

Stamp duty (officially called transfer duty) is a state government tax on property purchases. In Queensland, First Home Buyer QLD Stamp Duty rules changed significantly in May 2025, creating fantastic opportunities for eligible buyers.

For new homes (never lived in before):

Eligible First Home Buyers pay zero stamp duty with no price limit. This is huge! Whether you buy a $500,000 home or a $900,000 home, if it’s brand new and you meet the eligibility criteria, you pay no First Home Buyer Queensland Stamp Duty at all. This change came into effect on May 1, 2025, for contracts signed on or after that date.​

For established (older) homes:

If the home is valued under $700,000, eligible First Home Buyers pay zero stamp duty. This provides full exemption for most entry-level homes in Queensland.​

If the home is valued between $700,001 and $799,999, you get a partial concession. You’ll pay reduced stamp duty, potentially saving up to $24,525.​

If the home is valued at $800,000 or more, you may still qualify for the general Home Concession, which reduces stamp duty on the first $350,000 of the property value.​

For vacant land (to build on):

If you’re buying land valued under $350,000 to build your first home, you pay zero stamp duty (from May 1, 2025). This applies if you intend to build and live in the home within two years of buying the land.​

Eligibility requirements for stamp duty concessions:

You must be at least 18 years old and have never owned a residential property anywhere in Australia or overseas before.​

You must move into the property within 12 months of settlement and live there continuously as your main home. You can’t rent it out during this time, or you’ll lose the concession.​

You must be buying the property as an individual, not through a company or trust.​

You must pay market value for the property. Below-market transactions don’t qualify.​

Application process:

Your conveyancer or solicitor applies for the stamp duty concession on your behalf when they lodge the transfer documents with the Queensland Revenue Office. Make sure you tell them you’re a First Home Buyer so they can claim the right concession.

The stamp duty savings combined with the First Home Buyers grant create incredible value for eligible First Home Buyer QLD applicants. On a $650,000 new home, you could receive $30,000 in grant money and pay zero stamp duty, saving a combined total of over $45,000 compared to someone not eligible for these benefits.

8. Can I use the First Home Owner Grant and the 5% Deposit Scheme together?

Yes, definitely! This is one of the most common questions First Home Buyers ask, and the answer is good news. These programs are designed to work together, not compete with each other.

How they work together:

The First Home Buyers Grant ($30,000) is a cash payment from the Queensland Government that goes toward buying or building your new home. The money is usually paid directly to your lender at settlement, reducing how much you need to borrow.​

The 5% Deposit Scheme is a federal government program that lets you buy with just a 5% deposit (or 2% for single parents) without paying Lenders Mortgage Insurance. The government guarantees part of your loan to protect the lender.​

When you combine them, the benefits multiply:

Example scenario:

• You want to buy a new $600,000 home
• You’ve saved a 5% deposit: $30,000
• You receive the First Home Buyers Grant: $30,000
• Total amount you’re contributing: $60,000
• Amount you need to borrow: $540,000 (instead of $570,000)
• You save on LMI: approximately $20,000–$25,000

In this example, the two programs together reduce your loan by $60,000 and save you $25,000 in insurance costs – a total benefit of $85,000.​

You can add even more benefits:

Don’t forget about stamp duty savings! For new homes, eligible First Home Buyer QLD applicants pay zero stamp duty. On a $600,000 home, this saves another $17,325.​

So the complete benefit package becomes:

• First home buyers grant: $30,000
• LMI savings: $25,000
• Stamp duty savings: $17,325
• Total savings: $72,325

The First Home Super Saver Scheme:

You can also add the First Home Super Saver Scheme (FHSS) to this mix. The FHSS lets you withdraw up to $50,000 of voluntary superannuation contributions (plus earnings) to help with your deposit.​

When you combine all four programs – the First Home Buyers Grant, 5% Deposit Scheme, stamp duty concession, and FHSS – you maximise your government support and can enter the market years sooner than traditional saving methods would allow.

Important note:

While these programs work together, each has its own eligibility criteria. Make sure you qualify for each program individually. Your mortgage broker can help you understand which combinations work for your situation.

9. If I buy an investment property first, can I still get First Home Buyer benefits later?

No, generally not. This is a critical decision point that many people don’t realise until it’s too late. Once you own any residential property in Australia, you typically lose access to First Home Buyer benefits permanently, even if you later want to buy a home to live in.​

Why this matters:

The First Home Buyers Grant is only available if you have never owned residential property in Australia since July 1, 2000. This rule applies whether you lived in that property or not. So if you buy an investment property first, even if you never lived in it, you can’t claim the $30,000 grant when you later buy a home to live in.​

Stamp duty concessions have the same rule. They require that you have never held an interest in residential property anywhere in Australia or overseas. One investment property purchase eliminates your eligibility forever.​

The 5% Deposit Scheme is slightly more flexible. It supports people who are First Home Buyers OR who haven’t owned property in the last 10 years. So if you owned an investment property and sold it, you might regain eligibility after 10 years. But that’s a long wait.​

The financial impact:

Choosing to buy an investment property before your own home means giving up:

• $30,000 First Home Buyers Grant
• Up to $24,525 in Stamp Duty savings
• $20,000–$40,000 in LMI savings through the 5% Deposit Scheme
• Access to other First Home Buyer programs

That’s potentially over $70,000 in benefits you’ll never get back.​

Strategic considerations:

Some people argue that investment properties build wealth faster because of tax benefits and rental income. While this can be true, the mathematics need to account for the lost First Home Buyer benefits.

Investment properties also come with costs: higher interest rates (investment loans cost more), property management fees, maintenance, vacancy periods, and the risk of problem tenants. These costs can eat into your returns.​

The recommended strategy:

Most financial advisors suggest buying your first home as an owner-occupied property to access all the benefits. Once you’re established and have built some equity, you can then consider buying investment properties without losing any government support.​

If your goal is to build a property portfolio, start with your home first, get the maximum government help, then expand to investments later. You’ll be in a much stronger position financially.

10. Should I buy a new home or an established property?

This is one of the biggest decisions you’ll make, and it significantly impacts which government incentives you can access. Let’s break down the differences.

Benefits of buying a new home:

Maximum government support: New homes give you access to the full First Home Buyers grant ($30,000) plus zero stamp duty regardless of price. This combination isn’t available for established homes.​

Modern design and efficiency: New homes have contemporary layouts, better insulation, and modern appliances that save on energy bills.​

Lower maintenance: Everything is brand new, so you’re less likely to face repair costs in the first few years. Most new homes come with builder warranties that cover defects.​

Depreciation benefits: If you later convert your home to an investment property, new homes have higher depreciation deductions for tax purposes.​

Customisation options: Buying off-the-plan or with a builder often lets you choose colors, finishes, and upgrades.​

Benefits of buying an established home:

Established neighborhoods: Older suburbs often have mature trees, established parks, and stronger community connections.​

Larger land sizes: Established properties often sit on bigger blocks compared to new developments where land is subdivided smaller.​

Character and quality: Some established homes have better quality construction, unique character features, or architectural details you don’t find in modern builds.​

Known infrastructure: Schools, shops, and transport are already established. New developments sometimes wait years for amenities to be built.​

Potential renovation upside: You might find an established home below market value that you can renovate and add value to over time.​

Government support comparison:

For a $650,000 new home:

• First Home Buyers Grant: $30,000
• Stamp duty: $0
• Total government support: $30,000+

For a $650,000 established home:

• First Home Buyers Grant: $0 (not available)
• Stamp duty: $0 (under $700,000 threshold)
• Total government support: Stamp duty savings only

The difference is the $30,000 grant—that’s significant money that only applies to new homes.​

Price considerations:

Remember the First Home Buyers grant only applies to new homes valued under $750,000. If you’re looking at more expensive properties, this benefit disappears anyway, making the new vs. established decision more about personal preference and location.​

Making your decision:

Consider these questions:

• Do you value modern design or character features more?
• Are you handy with repairs, or do you prefer low maintenance?
• Is maximising government incentives your top priority?
• What locations are available within your budget for new vs. established?
• Are you planning to live in this home long-term or use it as a stepping stone?

For most First Home Buyers in Queensland, buying new offers the best financial position due to the generous government support available. However, the “right” choice depends on your personal circumstances, priorities, and budget.

Bonus Question: What are the biggest mistakes First Home Buyers make?

Learning from others’ mistakes helps you avoid them. Here are the most common errors that trip up First Home Buyers in Queensland.

Not getting pre-approval first: Many people start house hunting before knowing what they can afford. This wastes time and can lead to heartbreak when you find a home you love but can’t afford.​

Underestimating upfront costs: First Home Buyers often save for the deposit but forget about legal fees, inspections, insurance, and moving costs. These can total $10,000–$20,000 on top of your deposit.​

Skipping building and pest inspections: In Queensland’s climate, termites and structural issues are real risks. Spending $500–$800 on inspections can save you tens of thousands in hidden repairs.​

Missing grant application deadlines: The First Home Buyers Grant must be applied for within 12 months of completion. Many buyers miss this deadline and lose $30,000.​

Not moving in within 12 months: Most grants and concessions require you to move into your home within 12 months of settlement. Delays can cost you the benefits.​

Borrowing the maximum amount: Just because a bank approves you for a certain amount doesn’t mean you should borrow it all. Leave yourself a buffer for interest rate rises and unexpected expenses.​

Buying without understanding strata/body corporate: For units and townhouses, body corporate fees can add $1,000–$5,000+ per year to your costs. Factor these into your budget.​

Not reading contracts carefully: Always have a solicitor or conveyancer review your contract before signing. Special conditions, settlement dates, and deposit terms matter.​

Emotional decisions: Falling in love with a property can cloud your judgment. Stay objective and don’t let emotions push you beyond your budget or into a poor investment.​

Cutting the search short: Some buyers make offers on the first few properties they see. View at least 10-20 properties to understand the market and know you’re getting good value.​

Not asking for professional help: Trying to navigate the First Home Buyer process alone often leads to mistakes. A buyers agents like Buyers Scout can save you more than they cost by helping you access maximum benefits and avoid pitfalls.​

Summary

Buying your first home in Queensland is an exciting journey, and understanding the government support available makes it much more achievable than many people realise. The combination of programs – the First Home Buyers Grant of up to $30,000, stamp duty exemptions or concessions, the 5% Deposit Scheme, and the First Home Super Saver Scheme – can collectively save eligible buyers over $70,000 in upfront costs and significantly reduce deposit requirements.

The key is understanding each program’s eligibility requirements and how they work together. New homes offer maximum government support through both the First Home Buyers Grant and full Stamp Duty exemption regardless of price. Established homes under $700,000 still provide valuable Stamp Duty savings but don’t qualify for the grant. The choice between new and established depends on your priorities, budget, and which government benefits matter most to you.

Success as a First Home Buyer QLD applicant comes from proper preparation. Get pre-approval early so you know your borrowing capacity. Budget for all costs, not just your deposit. Don’t skip building and pest inspections. Apply for grants within the required timeframes. Most importantly, don’t rush – take time to view multiple properties and make informed decisions rather than emotional ones.

Remember that First Home Buyer Queensland Stamp Duty rules and the First Home Buyer QLD Stamp Duty Exemptions provide incredible savings opportunities. Combined with the First Home Buyers Grant for new properties, these programs create a powerful financial advantage that helps you build equity faster and achieve home ownership sooner.

Whether you’re ready to buy now or still saving, understanding these government incentives helps you plan effectively. Work with professionals like a Buyers Agent who understand First Home Buyer Programs. They’ll help you maximise benefits, avoid common mistakes, and navigate the process with confidence. Your first home is closer than you think when you take advantage of everything Queensland and the Australian Government offer to support First Home Buyers.