Queensland first home buyer grants explained

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on June 11, 2021
Queensland first home buyer grants explained

With property prices at record highs all around the country, first home buyers can be forgiven for finding it tough to buy their dream home.

Thanks to some government grants and schemes, Queensland buyers looking to enter the market for the first time can receive a bit of a cash boost. In this article we’ll go through how the First Home Owner Grant (FHOG) works in the Sunshine State, as well as:

  • How much you can get from it
  • How to apply for the grant
  • Whether you can get stamp duty discounts, and how much you could save on stamp duty
  • The other schemes first home buyers can use, such as the New Home Guarantee and the First Home Super Saver Scheme

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner-occupiers. 

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.

Variable Home Loan (Principal and Interest)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 29, 2022. View disclaimer.

Queensland first home buyers: by the numbers

Queensland is the third-biggest state by population, so it isn’t surprising to see a similar proportion of first home buyers (FHBs) there.

According to Australian Bureau of Statistics (ABS) lending data, 2020 saw over 137,500 new owner-occupied housing loans granted to first home buyers at an average of more than 11,400 per month.

That same data shows about 28,600 of those loans over the year were for Queensland first home buyers (about 21%). Respectively, NSW and Victoria represent around 24% and 30% of Australia’s first home buyer loans.

The QLD first home owner grant

First home buyers in Queensland can get the Queensland First Home Owners’ Grant (QFHOG), a cash grant that can be used for buying or building a newly established dwelling (houses, units, townhouses etc).

This grant is reasonably popular in Queensland: there were over 21,000 new first home buyer loans recorded in the state during the 2019/20 financial year and about 6,000 QFHOG payments (Australian Bureau of Statistics, Queensland Government). That’s around 29%, or almost a third of FHBs there. In comparison, these percentages are 24% and 44% in NSW and Victoria, respectively.

Here are some key things to know about the Queensland First Home Owner Grant.

How much can you get from the QLD grant?

Queensland first home buyers can get a cash grant of $15,000 from the State Government, usually paid at settlement of your home or on the first drawdown of funds when constructing one. This grant is only available per household, so it’s not possible for both yourself and a partner to get the $15,000 each.

As mentioned, it’s only available for newly established homes, so existing ones will disqualify you.

What are the price limits for the grant?

To be eligible for this $15,000 grant, QLD FHBs must be buying or building a new house, unit or townhouse worth less than $750,000. This includes the value of the land.

How do you qualify?

Besides the price cap, there are a number of eligibility conditions first home buyers in QLD have to meet before they can get this $15,000:

  • Each applicant must be at least 18
  • You must be a person, not a company or trust
  • At least one applicant must be a permanent resident or Australian citizen
  • Neither applicant can have owned a property at any point before 1 July 2000
  • You must live in the home for the first 12 months after settlement
  • 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 has been ‘substantially renovated’.

How do you apply?

To receive the $15,000 grant, you must apply within one year of your title on the home being registered or within one year of the home build’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 with the Office of State Revenue (by post or email).

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:

  • 100 points of ID (driver’s license, birth certificate, domestic or foreign passport etc.)
  • Other ID categories, such as your Medicare card and proof of your current address, like a utility bill
  • A copy of your building contract if you’re buying vacant land
  • A list of renovations if you’ve bought an existing property and substantially renovated it

And more. You can also email your application to fhogadmin@treasury.qld.gov.au, and you should receive a response within 10 business days.

For more information on the QFHOG, check the Queensland Government’s website.

Can you use the grant for a deposit?

Yes, your first home owner's grant can be used as a deposit, but chances are the one-off $15,000 will not be enough, and you’ll still need several tens of thousands more. Remember, to avoid the high cost of Lenders Mortgage Insurance (LMI), you’ll often need a deposit of at least 20%, and lenders will still want to see that you’ve genuinely saved up for most of the deposit yourself.

Given the grant is actually paid at different times in Queensland, the State Government says “it’s best not to count on using the grant as a deposit.”

Can first home buyers get stamp duty discounts in Queensland?

Stamp duty is one of the most expensive upfront costs when buying a property, easily costing five figures in many cases. But fortunately for Queensland FHBs, the Queensland FHOG can also make stamp duty more affordable.

QLD stamp duty concessions for first home buyers

Queensland FHBs are exempt from stamp duty for homes valued under $550,000 and vacant land under $400,000. On a case-by-case basis, it’s also possible to waive your stamp duty costs if the property is above these amounts.

There is also a home concession that applies to non-first home buyers too. Under the home concession, Queenslanders can claim concessions on the first $350,000 of the property’s value as long as they live in the home daily for the first year after settlement. The discount you can get here varies - see the Queensland Government for more information.

You can also read our state-by-state breakdown of stamp duty concessions and exemptions and our article on what stamp duty costs in every state, not just Queensland.

How much is stamp duty in QLD?

The Queensland Government’s calculator shows stamp duty on the median price for an existing property in Queensland ($535,618, according to CoreLogic) would be $9,999.50 without any concessions. But on the average FHB loan size of $451,516, a first-time buyer in Queensland would pay $0 for stamp duty thanks to these concessions.

Can you use both of these schemes?

Yes, FHBs in Queensland can use both the first home owner grant and the stamp duty concessions together. The criteria to qualify for both are similar, and this can lead to even bigger discounts.

What other QLD schemes and grants can first home buyers use?

First home buyers in Queensland can also combine several other schemes with both the FHOG and stamp duty concessions. Combining multiple schemes and grants to buy your home can provide tens of thousands of dollars in savings.

The New Home Guarantee

The New Home Guarantee provides up to 10,000 first home buyers each year with Federal Government support to buy a home. Under this scheme, these first home buyers can buy a house with just a 5% deposit while the government will provide the lender with a guarantee of up to 15% (like a promise to pay the lender this amount in the event the buyer fails to repay the loan) to ensure the lender doesn’t force the borrower to pay for LMI.

Available from 27 specific lenders, this scheme is subject to price caps, availability, and is limited to new builds only. 

The Family Home Guarantee

The 'Family Home Guarantee' allows 10,000 single parents (over four years, or 2,500 per year) to secure a home loan with as little as a 2% deposit (without having to pay LMI) through a government guarantee of up to 18%. It was introduced in the 2021/22 Federal Budget.

This scheme is available to previous owner-occupiers as well as first home buyers; has a maximum annual income cap of $125,000; must be for principal & interest (P&I) repayments, and for loans no longer than 30 years.  

The First Home Super Saver Scheme

The First Home Super Saver Scheme (FHSSS) can help you save up a deposit quicker by taking advantage of the tax discounts that superannuation can offers. Essentially the scheme to allows first home savers to salary sacrifice up to $15,000 of their wages per year towards the FHSSS (taking advantage of a discounted tax rate of 15%) where the funds will earn a deemed rate of return (currently 3.04% p.a.). When ready to buy a house, a maximum of $30,000 can be released from the scheme (although this is set to increase to $50,000 in July 2022) - along with the earnings - for use as a deposit. 

This scheme is generally much more tax-effective than saving through a bank account, but so far only 18,492 people (about 6,000 per year) have used it, making it much less popular than the first home owner grants or the New Home Guarantee.

Savings.com.au’s two cents

Despite soaring property prices in a lot of places in Queensland, there is help available if you’re trying to buy your dream home for the first time. Not only can the Queensland First Home Owner Grant give you a $15,000 boost, but you can save up to $55,000 or so when you also combine this grant with stamp duty concessions (around $10,000), the New Home Guarantee/Family Home Guarantee (saving up to $15,000 in LMI costs), and the FHSSS (offers tax savings of up to $15,000).

If you’re not sure how you can find the right property to take advantage of all these schemes, try consulting someone like 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 guide you through the process.

Read more about First Home Owner/Buyer Grants:


Photo via Brisbane City Council, Flickr

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

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