Buying your first home in Queensland is one of the most exciting and daunting milestones of your life. The good news: Queensland has some of the most generous first home buyer incentives in Australia, and if you understand the process, it's more achievable than you might think.
This guide walks you through everything from saving your deposit to collecting your keys.
Step 1: Understand What You Can Borrow
Before you fall in love with a property, you need to know your numbers. Your borrowing capacity depends on:
- Combined income (yours and your partner's, if applicable)
- Existing debts (car loans, personal loans, credit card limits)
- Living expenses (lenders use a benchmark called HEM)
- Loan term (usually 25–30 years)
- Assessment rate (lenders assess at a buffer rate, typically 3% above your actual rate)
Step 2: Save Your Deposit
Most lenders require at least 5% genuine savings. money that has been sitting in your account for 3+ months. The more you have, the better your options:
| Deposit | LVR | LMI Required? | Notes | |---------|-----|---------------|-------| | 5% | 95% | Yes (unless First Home Guarantee) | Minimum for most lenders | | 10% | 90% | Yes | More lender options | | 20% | 80% | No | Best rates, widest choice |
Genuine savings tips:
- Regular automatic transfers to a dedicated savings account
- Term deposits or government-linked savings schemes
- Gifted deposits can sometimes be used alongside genuine savings
- First Home Super Saver Scheme (FHSS): withdraw voluntary super contributions
Step 3: Know Your Grants and Schemes
Queensland is one of the most generous states for first home buyers. Here's what's currently available:
Queensland First Home Owner Grant (FHOG)
- Amount: $30,000
- Eligibility: New homes only (new builds, house-and-land, off-the-plan)
- Property price cap: $750,000
- Requirement: Must live in the property as your principal place of residence for 6+ months
First Home Guarantee (Federal scheme)
- Purchase with just a 5% deposit, no LMI required
- Government guarantees the remaining 15%
- Income caps: $125,000 singles / $200,000 couples
- Property price caps vary by location (Brisbane: $700,000)
- Limited places each financial year: apply early
Queensland Stamp Duty Concession
- First home buyers in QLD may be exempt from or receive a concession on stamp duty for properties under certain thresholds
- A $650,000 home could save you thousands in stamp duty
Step 4: Get Pre-Approved
A pre-approval (also called conditional approval) is a lender's written agreement to lend you a certain amount, subject to finding a suitable property. It typically takes 1–5 business days.
Why you need it:
- Gives you certainty about your budget before house-hunting
- Shows sellers and agents you're a serious buyer
- Essential at auction: you must be ready to sign unconditionally
- Valid for 90 days (can be renewed)
- Last 2 payslips (or 2 years tax returns if self-employed)
- 3 months bank statements
- Photo ID (driver's licence, passport)
- Details of debts and liabilities
Step 5: Find Your Property
Once you have pre-approval, start property hunting within your budget. Consider:
- Location vs price: Brisbane's outer suburbs offer more value, and areas like Springfield Central, Ipswich, and Forest Lake are popular with first home buyers
- New vs established: New homes qualify for the FHOG; established homes don't
- House vs unit: Houses typically have stronger long-term capital growth but higher entry prices
- Building inspection: Always get a building and pest inspection before unconditional exchange
Step 6: Make an Offer and Exchange Contracts
When you find your property: 1. Make an offer (private treaty) or bid at auction 2. Negotiate price and terms (cooling-off period, settlement date) 3. Sign the contract: you'll pay a deposit (usually 10% of the purchase price) 4. Contact us immediately: we convert pre-approval to formal approval based on the signed contract
Important: Don't sign a contract before confirming your finance is in order. While private treaty sales have a cooling-off period (5 business days in QLD), auction purchases do not.
Step 7: Formal Approval and Settlement
After exchange, your lender requires:
- Valuation of the property (arranged by the lender)
- Final income and liability verification
- Building insurance (most lenders require this from exchange)
Step 8: Settlement Day
On settlement day:
- Your conveyancer/solicitor completes the transfer of title
- The lender releases funds to pay the vendor
- The remaining balance of your deposit is released
- You receive the keys
Common First Home Buyer Mistakes to Avoid
- Borrowing your maximum: Just because you can borrow $600,000 doesn't mean you should. Leave buffer for rate rises, repairs, and life events.
- Skipping the building inspection: A building and pest inspection costs $400–$800. A hidden structural issue can cost $50,000+.
- Not having a buffer: Keep 2–3 months of repayments in savings even after your deposit is used.
- Underestimating purchase costs: Budget 4–6% on top of the purchase price for stamp duty (if applicable), legal fees, inspections, and moving costs.
- Waiting for the "perfect" time: Property markets fluctuate, but time in the market beats timing the market for long-term wealth creation.
Ready to Start?
Our team specialises in first home buyers across Brisbane's south-west corridor: Springfield Central, Ipswich, Forest Lake, and beyond. Book a free strategy call today and let's get you into your first home.