The First Home Guarantee Scheme QLD [2026 Complete Guide]

The hardest part of getting into the QLD property market as a first home buyer is usually getting a deposit saved. The Federal Government has a scheme to help: eligible buyers can purchase or build with as little as a 5% deposit, without paying Lenders Mortgage Insurance (LMI). That saving alone can be worth up to $46,110 on a $1,000,000 property. The scheme is the First Home Guarantee, administered by Housing Australia on behalf of the Australian Government.
From 1 October 2025, the scheme changed in a few important ways. Income caps disappeared, the annual limit on places was removed (previously 35,000 a year), and Queensland's property price caps increased.

The first thing most people notice isn't the guarantee itself. It's the fact they're not paying thousands in LMI. Normally, if you've got less than a 20% deposit, lenders charge LMI, an insurance policy that protects the bank if you can't make repayments. It doesn't protect you. And it's not cheap. LMI on an $800,000 property with a 5% deposit can run up to $32,000.[3]

Under the First Home Guarantee, the government guarantees 15% of the property value to the lender. The bank effectively treats you as if you had a 20% deposit. So you're not charged LMI. You don't receive the savings as cash into your account; it's arranged in the background. The impact on your total purchase cost is real.

It's also worth knowing that some lenders offer better interest rates to borrowers with an effective 80% LVR. If you ever end up in a situation where LMI does apply, it's worth reading how to reduce your LMI premium. That's what you'll have under the scheme. So beyond avoiding LMI, you might also secure a lower rate than you'd otherwise get with a 5% deposit, which adds up over a 30-year loan term.

Table 1: First Home Guarantee: LMI Saving At Different Property Prices

The maximum property value to be eligible under the First Home Guarantee depends on where you're buying in Queensland.

South East Queensland (Brisbane, Gold Coast, and Sunshine Coast) carries a cap of $1,000,000. For the rest of Queensland, the cap is $700,000.
The price cap is just one part of what you can spend. What you'll actually borrow depends on your borrowing capacity: your income, debts, and assets. If you want to improve your position before applying, read how to increase your borrowing capacity.

One mistake I see regularly is buyers focusing on the price cap before checking what they can actually borrow. I'd recommend having this conversation 4 to 12 months before you want to buy. You can check your borrowing power here to get a starting point, or use the home loan repayments calculator to model what your monthly costs would look like.

When buying under the First Home Guarantee, you need a minimum of 5% of the purchase price saved as a deposit, plus buying costs on top of that. If you have more than 20% already saved, you're not eligible, but that also means you wouldn't be paying LMI anyway, so it's not much of a loss.

For a $1,000,000 property, you'd need $89,000 total: $50,000 as your 5% deposit plus around $39,000 in buying costs. Without the scheme, you'd either need a $200,000 deposit to avoid LMI, or add $46,110 in LMI on top of that $89,000. The scheme removes that second hit entirely.

The deposit must be genuine savings: money you've held in a bank account for at least three months, or other acceptable forms. This is a lender requirement, not just a scheme one. I'll walk you through what qualifies if it's not obvious for your situation.

Table 2: First Home Guarantee: Deposit And Total Savings Required

Before you apply, it's worth checking the current eligibility rules because several of them changed in late 2025, notably income caps and who can buy together. If you're still at the research stage, the first home buyers overview is a good place to start.

Table 3: First Home Guarantee: Key Eligibility Requirements

If you're buying in Brisbane, the how to buy a house in Brisbane guide covers the full process end to end. You can't apply directly to Housing Australia. Applications go through a participating lender, either directly with the bank or through a mortgage broker. Over 30 lenders are on the panel: NAB, CBA, Westpac, and St George among the major banks, plus mutual lenders like Bank Australia, Bendigo Bank, and MyState Bank. Different lenders have different policies within the scheme, so which one suits you depends on your situation. I'll work that out with you. The scheme has scale behind it: around 1 in 3 first home buyers in Australia were supported by it in 2023–24, with 43,800 places taken up that financial year alone.

• Owner-occupied only. No investment properties.
• Principal and interest repayments, 30-year term. Not sure whether to go fixed or variable? See fixed vs variable home loans.
• Deposit must be genuine savings held for at least 3 months.
• 100% of the loan must go toward the property purchase.
• You can't increase the loan limit while the guarantee applies. To access equity later, you'd refinance to a non-scheme loan. Read how to refinance a home loan when the time comes. LMI may apply if your equity is still under 20%.

Based on my 19 years in lending, the buyers who get the best outcomes sort their finance strategy well before they're under pressure to act. Get in touch before you start house hunting.

The First Home Guarantee is genuinely useful. But in 2026, Queensland first home buyers have more support available than at any point previously. The challenge is knowing what goes with what, because not everything can be combined. There are a few other schemes worth looking at before you commit to one path:

First Home Owner Grant (FHOG): $30,000 cash for eligible first home buyers purchasing or building a new home. Valid for contracts signed by 30 June 2026, after which it reverts to $15,000. The home must be valued at under $750,000. This is a state scheme separate from the First Home Guarantee, so you can use both on the same purchase.

Stamp duty exemption on new homes: From 1 May 2025, eligible first home buyers in QLD pay zero transfer duty on new homes with no price cap. On established homes, full concessions apply under $700,000 and partial concessions up to $800,000. Worth reviewing the QLD stamp duty rebate guide for the full picture, or run your numbers through the QLD transfer duty calculator.

First Home Super Saver Scheme (FHSS): Save your deposit inside super on pre-tax dollars. Up to $50,000 withdrawable. Stacks with the First Home Guarantee.

Boost to Buy: QLD shared equity scheme where the government contributes up to 30% of a new home's purchase price, with only a 2% deposit required. Cannot be combined with the First Home Guarantee. These are mutually exclusive. If you're weighing both, I'd run the numbers before you commit.

Help to Buy: Federal shared equity scheme launched 5 December 2025[5], up to 40% contribution on new homes. Income caps apply. Cannot be stacked with the First Home Guarantee.

Table 4: QLD First Home Buyer Schemes: What Stacks With What

In short: the First Home Guarantee stacks with the FHOG, stamp duty exemptions, and the FHSS. It doesn't stack with Boost to Buy or Help to Buy. On a new build in Queensland you could be looking at well over $100,000 in combined savings. Understanding all financial assistance available to first home buyers is worth doing before you apply for anything.

Established And Off-The-Plan Homes
For established homes, move in within 6 months of settlement. Before you get to settlement, make sure you've arranged a building and pest inspection. For off-the-plan, settlement must occur within 90 days of the guarantee being issued, and you move in within 6 months of that.

Applies to house and land packages and separate land plus build contracts. The construction loan covers both land and build.
1. Sign an eligible building contract before loan settlement
2. Start construction within 12 months of settlement
3. Complete the build within 24 months of settlement
4. Move in within 6 months of an occupancy certificate being issued
Note: if you already own vacant land and want a new loan to build on it, that loan is not eligible. See how to build a house in Brisbane for the full process.

1. Housing Australia, Home Guarantee Scheme Trends and Insights Report 2024-25, October 2025. housingaustralia.gov.au
2. Housing Australia, Unlimited places, higher property price caps for first home buyers from 1 October 2025, August 2025. housingaustralia.gov.au
3. Office of Impact Analysis, Home Guarantee Scheme Expansion Supplementary Analysis, August 2025. oia.pmc.gov.au
4. Finder, First Home Buyer Report 2025, June 2025. cdn.finder.com.au
5. Housing Australia, Help to Buy scheme. Applications opened 5 December 2025. housingaustralia.gov.au
6. Housing Australia, First Home Guarantee eligibility and price caps. housingaustralia.gov.au. Accessed May 2026.