If you plan to live in Queensland, first home buyers loans play a crucial role in making homeownership within reach. With Brisbane’s median house price nearing $888,000 and demand remaining strong in areas like Ipswich and Logan, first-time buyers are leaning heavily on financial support to break into the market.
These loans can ease upfront costs and open access to government grants, making it more realistic to step into Queensland’s fast-moving property market.
At Zest Mortgage Solutions, our experienced brokers work closely with first-time buyers to simplify what often feels like an overwhelming process. We offer tailored advice, compare a wide range of loan options, and provide local insights to help you make confident, informed decisions at every step.
Let’s dive into everything you need to know about first home buyers loans in Queensland.
What Are First Home Buyers Loans?
First home buyers loans are home loans designed specifically to help people purchase their first residential property. They’re tailored to make the buying process more achievable by reducing financial pressure, particularly for those struggling with rising prices and upfront costs.
How It Works
The basic structure of a first home buyers loan is similar to a regular home loan: you borrow money from a lender to purchase a property, then repay it over time with interest. What makes these loans unique is the access they can provide to government-backed schemes and first home buyer support programs.
Government-Backed vs. Standard Lender Loans
There are two main pathways:
- Government-backed schemes (like Housing Australia’s First Home Guarantee) help eligible buyers with smaller deposits or lower incomes by removing the need for Lenders Mortgage Insurance.
- Standard lender loans are offered by banks and financial institutions, and may include exclusive offers or lower rates for first-time buyers, though they typically come with stricter lending criteria.
How They Differ From Regular Home Loans
Unlike a general home loan, a first home buyers loan is tied to your status as a first-time buyer. You may gain access to stamp duty concessions, government grants, or lower deposit requirements, depending on your situation and the property you’re buying. These benefits are not available to repeat buyers or investors.
In short, they’re built to help new entrants break into the market, offering support not found in standard loan options.
Who Is Eligible for First Home Buyers Loans in Queensland?
Not everyone can apply for a first home buyers loan—it’s designed for genuine first-timers. Before you dive into the process, it’s important to understand if you meet the basic criteria.
General Eligibility Criteria
To qualify for a first home buyers loan in Queensland, you must:
- Be at least 18 years old
- Be an Australian citizen or permanent resident
- Be purchasing your first residential property in Australia
- Plan to live in the property as your principal place of residence
- Apply as an individual or joint applicant who hasn’t previously owned property
- Meet income and property value caps, depending on the government scheme
Additional Requirements
Lenders and grant programs may also ask you to:
- Provide proof of steady income
- Show a satisfactory credit history
- Have a minimum deposit, usually at least 5%
- Intend to move in within 12 months and live there for a continuous 6-month period
- Submit a contract of sale with eligible conditions if purchasing an established home or land package
Eligible Property Types
To qualify for first home buyers loans and related grants in Queensland, the type of property you purchase must meet specific criteria:
- It must be a residential property—not commercial or industrial
- You can buy an existing home, a newly built home, or a house and land package
- Vacant land is eligible if you plan to build a home on it within the required timeframe
- Off-the-plan apartments are allowed if they haven’t been lived in before
- The property must fall within the purchase price caps set by the loan program or grant
Investment properties are not eligible. The property must be intended for you (or all applicants) to live in as your main residence.
These requirements can vary slightly between lenders or schemes, so it's always wise to get tailored financial advice based on your personal circumstances.
Not sure if you meet the loan requirements?
Understanding the eligibility criteria and property requirements can get tricky, especially with different rules across lenders and grant programs. At Zest Mortgage Solutions, we break it down for you clearly and simply, so you know exactly where you stand. Call us on (07) 3461 6499 or visit zestmortgagesolutions.com.au to check your eligibility today.
Types of Home Loans for First Home Buyers
Not all home loans are the same, and picking the right one can make a big difference in repayments and flexibility. Here's a quick guide to the main loan types first home buyers in Queensland should know about.
Variable Rate Home Loan
The interest rate can change based on market conditions, which means your repayments may go up or down. These loans often offer more flexible features like redraw or offset accounts.
Fixed Rate Home Loan
Your interest rate and repayments stay the same for a set period, usually 1 to 5 years. It offers stability and predictability, ideal for budgeting.
Split Home Loan
This option lets you split your loan between fixed and variable rates. It offers a balance of flexibility and security in a changing market.
Interest-Only Loan
You only pay the interest for an initial period (typically up to 5 years), not the principal. This lowers repayments short-term but doesn't reduce the loan amount.
Low Deposit Home Loan
These loans let you buy with as little as 5–10% deposit. They often come with lenders mortgage insurance (LMI) unless backed by a guarantor.
Guarantor Loan
A family member (usually a parent) uses their property as security, helping you borrow more or avoid LMI. It’s popular among buyers who have low savings but strong family support.
Government Grants and Support for First Home Buyers in Queensland
If you're a first-time buyer in Queensland, several government programs can help you get into the market sooner. These supports can reduce your upfront costs and increase your borrowing power.
First Home Owner Grant (FHOG QLD)
This is a one-off payment of $30,000 (as of 2025) for eligible buyers purchasing or building a new home. The home must be valued under the threshold (currently $750,000) and you must live in it as your principal place of residence.
First Home Concession on Stamp Duty
You may pay reduced or zero stamp duty on a home valued under $550,000. To qualify, you must move in within 12 months and not have owned property before.
First Home Guarantee (part of the Home Guarantee Scheme)
This federal scheme lets you buy with as little as 5% deposit, without paying lenders mortgage insurance. It’s available through participating lenders and has an annual cap on places.
Regional First Home Buyer Guarantee
Aimed at boosting regional growth, this support helps eligible buyers in regional QLD towns and cities access a home with a 5% deposit and no LMI. You must live outside major metro areas and meet income and property criteria.
Family Home Guarantee
Designed for single parents with dependents, this scheme allows you to purchase a home with just 2% deposit. You don’t need to be a first-time buyer, but you can’t currently own property.
How Much Can You Borrow as a First Home Buyer in Queensland?
Your borrowing power depends on a mix of personal and financial factors. Lenders assess how much you can afford to repay based on your income, expenses, debts, and savings. This helps determine the maximum loan you may qualify for.
Three key things influence this:
- Credit score – A higher score usually means better loan options and rates.
- Deposit size – A larger deposit (typically 10–20%) can boost your chances and reduce the need for Lenders Mortgage Insurance (LMI).
- Income stability – A steady job or consistent income is essential to show you can manage loan repayments.
To get a clearer picture of what you can afford, use online tools such as our Zest Mortgage Solutions online calculators. These calculators give a rough estimate, but speaking with a mortgage broker gives you a more accurate, tailored assessment.
How to Apply for a First Home Buyers Loan in Queensland
Applying for a home loan for the first time can feel like a maze, but it’s much smoother once you understand the steps. Here's a clear breakdown of what to expect from pre-approval to settlement, tailored to your individual circumstances.
Step 1: Assess Your Finances and Loan Deposit
Start by reviewing your income, savings, expenses, and any existing debts. Make sure you have a loan deposit saved—usually 5–20% of the property purchase price.
Step 2: Get Pre-Approval
Pre-approval gives you an estimate of how much you can borrow. Lenders will assess your credit history, income, and outgoings to determine what type of rate loan—such as variable loans—you may qualify for.
Step 3: Start House Hunting
Now’s the time to engage a real estate agent and begin house hunting within your budget. Stick to properties under the property price caps if you want to remain eligible for a buyer grant or other government schemes.
Step 4: Make an Offer and Sign a Purchase Contract
Once you find the right place, make an offer. If accepted, you’ll sign a purchase contract (or separate contract if buying a house and land package or plan purchase).
Step 5: Conduct Building Inspections and Order Property Reports
Before going further, book building inspections, pest checks, and request relevant property reports. You’ll also need an inspection certificate, especially if the home has a swimming pool or other high-risk features.
Step 6: Pay Application Fees and Organise Transfer Duty
Once inspections are clear, your lender will request application fees. You’ll also be liable for transfer duty (stamp duty), though first-time buyers in Queensland may be eligible for exemptions or concessions based on the property price.
Step 7: Review Your Loan Agreement and Seek Legal Advice
At this stage, it’s smart—and very common—to work with both a mortgage broker and a property solicitor or conveyancer. Your broker will help you understand the details of the loan agreement, including the structure of your rate loan, repayments, and conditions.
Meanwhile, a solicitor or conveyancer will carefully review the contract of sale, check for any contract variations, and explain potential extra costs you might not expect.
While not legally required, this step is a key safety net and can help protect you from expensive mistakes.
Step 8: Confirm Loan Approval and Prepare for Settlement
Once your lender reviews all documents, your loan process moves to formal approval. If you’re building, this is also when you’ll lock in building costs with your builder and ensure a comprehensive building contract is in place.
Step 9: Settle the Property
Settlement usually occurs 30 to 90 days after the contract is signed. During this time, you’ll pay any Land tax or application fees, finalise your insurance, and prepare to move into your new home. Note: commercial property or investment-focused homes aren’t eligible for first home buyer schemes.
From start to finish, the loan process typically takes 4–10 weeks, depending on your lender, contract terms, and personal situation. Having the right support along the way can save you time, money, and stress.
Ready to Take the First Step with Confidence?
Buying your first home doesn’t have to be overwhelming. Our trusted Queensland mortgage brokers at Zest Mortgage Solutions will guide you through every step, cutting through the jargon, avoiding costly mistakes, and helping you find a loan that suits your goals and lifestyle.
Call (07) 3461 6499 or visit zestmortgagesolutions.com.au to speak with a local expert who actually gets the Queensland market.
Frequently Asked Questions (FAQs)
What are first home buyers entitled to in QLD?
Eligible home buyers in Queensland may be entitled to the $30,000 First Home Owner Grant, stamp duty concessions, and access to government-backed schemes that reduce the financial burden of buying. These benefits help support first-time homebuyers through their buying journey, especially in a competitive housing market.
What are the best loans for first time home buyers?
The best loans depend on your financial position, but many major banks and lenders offer special products with lower deposits, waived fees, or interest rate discounts. A mortgage broker can help compare options and secure conditional approval that fits your goals.
Can I use First Home Grant as a deposit in QLD?
You can use the First Home Owner Grant to contribute to your loan deposit, but most lenders still require genuine savings and proof of a stable financial position. It's best used alongside other savings to strengthen your application and improve conditional approval chances.
Do first home buyers in QLD have to pay stamp duty?
Not always. First-time homebuyers may be eligible for a full or partial exemption from stamp duty, depending on the property’s value and whether it's a principal place of residence. This can significantly reduce upfront costs during your buying journey.
What is the threshold for the first home grant in Qld?
The property must be a new home or new build valued at $750,000 or less to qualify for the grant. This property price cap ensures support is directed to eligible home buyers purchasing affordable housing.
What is the $30,000 grant in Queensland?
The $30,000 First Home Owner Grant is a government initiative for first-time homebuyers purchasing or building a new home in QLD. It’s designed to ease the financial burden of entering the housing market, especially for buyers without large savings or who have existing debts like credit cards.
Final Thoughts
Buying your first home in 2025 doesn’t have to be a guessing game. With the right advice, support, and loan guidance, you can make confident decisions that suit your goals without feeling overwhelmed by the process.
At Zest Mortgage Solutions, our friendly mortgage brokers based in Springfield and Ipswich work with first-time buyers all over Queensland, helping you find a home loan that fits your budget and lifestyle. We offer a free consultation to get you started—no pressure, just real advice tailored to your situation.
Call us on (07) 3461 6499 or visit zestmortgagesolutions.com.au to book your chat today. Your first home is closer than you think.
