The Complete First Home Buyer's Guide for Queensland 2025

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)

Use our Borrowing Power Calculator for a quick estimate, then book a call to get an accurate figure based on your actual situation.

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 (TODO: Tom to verify current amount before publishing)

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

Use our Stamp Duty Calculator to see your exact savings.

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)

To get pre-approved, you'll need:

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)

Formal approval is typically received within 3–10 business days. Settlement (when you receive keys) is usually 30–60 days after exchange: the date is agreed in the contract.

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

Congratulations, you're a homeowner!

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.

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