For many Queenslanders, saving for a home deposit is a major hurdle to buying their first property. The Queensland Housing Finance Loan, offered by the state government, provides an alternative for eligible buyers who can afford regular repayments but lack a large deposit.
As property lawyers based in Brisbane, Ensure Legal helps clients navigate the legal and financial aspects of property purchases, especially when government-backed options are involved. Below, we provide a detailed overview of this low-deposit loan scheme.
Who is eligible
To apply for the Queensland Housing Finance Loan, you must:
- Be at least 18 years old
- Be a citizen or permanent resident of Australia and live in Queensland
- Intend to live in the property you are purchasing
- Have a stable employment history:
- At least 1 year if employed permanently
- At least 2 years if employed casually
- At least 3 years if self-employed
- Have a maximum gross household income of:
- $141,000 per year for metropolitan areas
- $201,000 per year for designated regional areas (as part of a 2-year trial ending 1 July 2026)
- Have no current ownership or part-ownership in any property
- Be able to demonstrate financial responsibility through:
- A regular savings history
- A good credit record
- Minimal debts
- Sufficient income to repay the loan over time
You may apply jointly with others, such as a partner or friend, provided all applicants meet the above criteria.
Loan summary
The loan is designed to help buyers who meet affordability criteria but lack a significant deposit. Key loan features include:
- Loan amounts up to the maximum you are assessed to afford
- Loan terms up to 30 years, depending on your circumstances
- Repayment type: principal and interest
- Interest rates: variable or 3-year fixed
- Repayment amount: begins at 30% of gross household income, capped at 35%
- No lender’s mortgage insurance required
- No redraw or offset account
- Financial advice rebate of $100 for approved applicants
Application fee: $817.56 (subject to CPI increase each July)
Minimum deposit: 2% of the property price or the shortfall between the property price and your borrowing limit, whichever is higher
Account keeping fees: None
Fixed rate reset fee: May apply if the rate is changed before the end of the 3-year fixed period
Example scenarios
Example 1:
Mary qualifies for the full loan amount of $500,000 and only needs to pay 2% deposit, which is $10,000.
Example 2:
Paul qualifies for a maximum of $450,000, but the property he wants costs $500,000. He must provide a $50,000 deposit to make up the difference.
Upfront costs to consider
In addition to your loan deposit, you should prepare for third-party costs such as:
- Building and pest inspections
- Legal and conveyancing fees
- Transfer duty (stamp duty)
- Mortgage and land registration fees
- Building and contents insurance
We recommend consulting a solicitor to estimate your total upfront expenses based on your purchase price and location.
Ongoing costs of homeownership
Once you’ve purchased your home, you’ll also need to budget for:
- Annual home insurance
- Council rates and utility bills
- Repairs and maintenance
These are not covered by the loan and must be managed as part of your long-term financial planning.
How to check your eligibility
To find out if you qualify, call the Queensland Government’s housing loan team at 1300 654 322 (Monday to Friday, 8:30am – 4:30pm). You will need to provide information about your household income, savings, and existing debts. The eligibility check typically takes 15 to 20 minutes.
If you are found eligible and your property offer is accepted, you will receive loan application forms. You will then have up to three months to complete and submit your application.
Why legal advice matters
Even when supported by a government loan, buying a home is a legal process that involves contracts, compliance, and potential risks. Ensure Legal can assist with:
- Reviewing your contract of sale
- Clarifying your legal rights and obligations
- Advising on stamp duty and other payable fees
- Coordinating your settlement with conveyancers and lenders
We help protect your interests throughout the purchase process and make sure your first step into property ownership is on solid legal ground.
