Saving up for a home doesn't come without its challenges but there is help at hand. Thanks to government grants and schemes, Queensland buyers looking to enter the market for the first time can receive a bit of a cash boost.
How the First Home Owner Grant works in Queensland
The Queensland First Home Owner Grant (FHOG) is valued at either $30,000 or $15,000, depending on timing, for properties valued up to $750,000 (including land and any contract variations).
If you're buying or building a new home, the grant amount is:
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$30,000 for contracts signed between 20 November 2023 and 30 June 2025 (both dates inclusive)
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$15,000 for contracts signed before 20 November 2023
For owner-builders, the grant amount is:
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$30,000 where foundations are laid between 20 November 2023 and 30 June 2025 (both dates inclusive)
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$15,000 where foundations were laid before 20 November 2023
This money can go a long way towards your first home, but there are conditions.
To be eligible, Queensland first home buyers must be buying or building a new house, unit, or townhouse to live in - this includes the value of the land. So, existing dwellings don't qualify for the grant.
However, you may be eligible for the first home owner grant if you buy an established home that's been substantially renovated. In other words, most (if not all) of the building must be removed or replaced. For example, altering the foundation of the property would count as a substantial renovation while cosmetic renovations would not.
If you're applying with a partner, it's also not possible for both of you to get the grant as it is only available per household.
Can you use the grant for a deposit?
The first home owner's grant can be used as a deposit for a home loan, but chances are the one-off $30,000 (or $15,000) may not be enough to avoid the additional cost of taking out Lenders Mortgage Insurance (LMI). This is generally needed for home loans where you have less than 20% deposit. As well, lenders will still want to see that you've genuinely saved up for most of the deposit yourself.
That said, you don't need a deposit to apply for the grant. Bear in mind though, the Queensland government advises it's best not to count on using the grant as your deposit as it can be paid at different times depending on how and when you apply for it.
First Home Owner Grant eligibility
Besides the $750,000 property price cap, there are a number of eligibility conditions first home buyers in Queensland have to meet before they can get the grant:
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Each applicant must be at least 18
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You must be a person, not a company or trust
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At least one applicant must be a permanent resident or Australian citizen
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You must not have previously received a First Home Owner Grant in Australia
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Neither applicant can have owned a property at any point before 1 July 2000
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You must move into the new home as your primary place of residence within 12 months of the completed transaction and live there continuously for six months
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The home must be 'new'
According to the Queensland Government's eligibility tester, a new home is one that has not previously been occupied or sold as a place of residence, or one that has been 'substantially renovated'.
Applying for the First Home Owner Grant
To receive the grant, you must apply within one year of your title on the home being registered or within one year of the home's completion, with extensions available upon request. To submit an application for the Queensland First Home Owners Grant, you can do so through either an approved bank or lender or to the Queensland Revenue Office (by post or email).
Typically, the fastest way to receive the FHOG is applying through an approved agent (for example, you home lender) as they will manage your application for you.
Either way, you'll need to fill out the Queensland Treasury's First Home Owners' Grant application form PDF and attach the usual supporting documents:
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100 points of identification (driver's license, birth certificate, domestic or foreign passport etc.)
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Other ID categories, such as your Medicare card and proof of your current address, like a utility bill
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A copy of your building contract if you're buying vacant land
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A list of renovations if you've bought an existing property and substantially renovated it
For more information on the QFHOG, check the all the details on the Queensland government's website.
Competitive home loan rates
If you're a first-time home buyer looking for a home loan, the table below features some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.69% p.a. | 6.16% p.a. | $2,899 | Principal & Interest | Fixed | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 5.90% p.a. | $2,995 | Principal & Interest | Variable | $0 | $0 | 80% | Apply in minutes |
| Promoted | Disclosure | |||||||||
6.09% p.a. | 6.11% p.a. | $3,027 | Principal & Interest | Variable | $0 | $250 | 60% |
| Promoted | Disclosure |
Can first home buyers get stamp duty discounts in Queensland?
Stamp duty, called transfer duty in Queensland, is a major upfront cost when buying a property in Australia. In Queensland, first home buyers can claim a transfer duty concession for their first home if they meet certain requirements.
See Also: What is stamp duty and the state-by-state costs?
Eligibility for first home concession in Queensland
Queensland first home buyers are eligible for a first home concession when they buy or acquire a home under $550,000 and vacant land under $400,000. You can save up to $15,925 in transfer duty on homes worth between $500,000-$550,000 and up to $7,175 on the duty on a block of land.
If you are acquiring the property with another person, you can still claim the first home buyers transfer duty concession on your share in the property regardless of the other acquirer/s eligibility for the concession. The Queensland government provides a transfer duty calculator to give a better idea of the concessions available. The form for claiming the first home transfer duty concession is also available on the government website.
See Also: State-by-state breakdown of stamp duty concessions and exemptions
Can you use both of these schemes?
First home buyers in Queensland can use both the first home owner grant and the transfer duty concessions together. However, each scheme has its own eligibility requirements and there are some anomalies. For example, the first home owners grant allows you to rent out a room or granny flat in your first home, but this could disqualify you from a transfer duty concession. Here is a guide to the different requirements for each and some exceptions to the rules.
What other schemes and grants can first home buyers access?
First Home Guarantee
The First Home Guarantee (FHBG) is an Australian Government incentive for first home buyers looking to purchase their first home. The scheme offers first home buyers the ability to purchase a home with a deposit as low as 5%, without the need to pay Lenders' Mortgage Insurance (LMI). This means you can borrow up to 95% of the property value, with the federal government providing the lender with a guarantee of up to 15%.
The FHBG is administered by Housing Australia on behalf of the Australian government, offering 35,000 places for Aussies across the country each financial year until 30 June, 2025.
Regional First Home Guarantee
The Regional First Home Buyer Guarantee Scheme is identical to the First Home Guarantee, except it is designed to target first home buyers in regional Australia.
With the Regional First Home Guarantee, 10,000 guarantees each year will help first home buyers purchase a regional home with as little as 5% loan deposit without having to pay LMI. This means you can borrow up to 95% of the property value, with the federal government providing the lender with a guarantee of 15%.
The Family Home Guarantee
The Family Home Guarantee allows eligible single parents to secure a home loan with as little as a 2% deposit without having to pay LMI. It was introduced as part of the 2021/22 Federal Budget.
This scheme is available to previous owner-occupiers as well as first home buyers. Applicants can have a maximum annual income of $125,000 and the guarantee must be for loans with principal & interest (P&I) repayments with loan terms no longer than 30 years. The scheme is open to 5,000 people each financial year.
The First Home Super Saver Scheme
The First Home Super Saver Scheme (FHSSS) is a federal government initiative that allows you to save money for your first home in your superannuation fund. The scheme allows you to make voluntary contributions (both before-tax concessional and after-tax non-concessional). In practical terms, it can help you save for a deposit faster by allowing you to benefit from the tax discounts that superannuation can offer.
Under the scheme, you can salary sacrifice up to $15,000 of your wages per year towards the FHSSS, taking advantage of a discounted tax rate of 15% for super contributions. You are limited to contributing a total of $50,000 across all years and can have these contributions released, along with their associated earnings, to fund a first home purchase. The earnings are at a deemed rate of return, not the actual earnings made by your super fund.
(Note: if you'd previously requested a release before July 2022 when the limit was $30,000, you can't make any further requests to take you to the current $50,000 limit.)
Savings.com.au's two cents
If you're not sure how you can find the right property to take best advantage of all these schemes, it's a good idea to consult a mortgage broker or buyer's agent, or get in touch with a home loan specialist at your lender of choice. These experts can help you determine your eligibility for the various programs and guide you through the application processes.
Article first published 11 June 2021. Last updated 24 May 2024.
First published on June 2021
Photo via Brisbane City Council, Flickr
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