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Buying Your First Home in Queensland — Here's Every Option Available to You
Government schemes, guarantor loans, low deposit options and construction pathways
Explained clearly so you can move forward with confidence, not confusion.
This guide walks you through every pathway available to Queensland first home buyers: how much deposit you actually need, which grants and concessions you may qualify for, how guarantor loans work, and what happens if you don't meet standard eligibility criteria.
No obligation, just clarity. We’ll walk you through the home loan and First Home Buyer Scheme application process.
Buying your first home is one of the biggest financial decisions you'll make — and the landscape has changed significantly in 2025. Government schemes now offer more places, higher price thresholds, and fewer restrictions than ever before.
Rather than chasing the lowest rate, the goal here is to help you structure your first home loan correctly from day one — so you build equity faster and avoid the costly mistakes that catch many buyers off guard.
Understanding Your First Home Buyer Options in Queensland
This infographic explains the major first home buyer pathways available in Queensland, including the First Home Guarantee Scheme, Family Home Guarantee, guarantor loans, deposit boost options, borrowing capacity factors, offset accounts, and the step-by-step buying process.
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Federal government support
First home buyer guarantee schemes
The Australian Government runs three deposit guarantee schemes through Housing Australia. All three allow eligible buyers to purchase with a small deposit and pay no Lenders Mortgage Insurance. Major changes took effect from 1 October 2025.
Scheme 1 of 3 · First Home Buyers
First Home Guarantee
Buy sooner with a 5% deposit — no LMI payable
Min deposit
5%
No LMI
Who qualifies
- ✓ Australian citizen or permanent resident aged 18+
- ✓ First home buyer — or returning buyer who hasn't owned in 10+ years
- ✓ Purchasing as owner-occupier (must move in within 6 months)
- ✓ At least 5% genuine savings
- ✓ No income cap from 1 October 2025
- ✓ Can apply solo or jointly — including with friends or family
- ✗ Investment properties excluded
- ✗ Must use a participating lender (30+ on the panel)
Queensland price caps (2026)
Brisbane, Gold Coast, Sunshine Coast$1,000,000
Other QLD regional areas$800,000
Sydney / NSW regional centres$1,500,000
Melbourne / Geelong$950,000
Perth$850,000
Best suited to
First home buyers in Brisbane, Gold Coast, or Sunshine Coast with 5% genuine savings who want to enter the market sooner without paying LMI. Also available to returning buyers who haven't owned property in over 10 years.
Scheme 2 of 3 · Single Parents & Guardians
Family Home Guarantee
2% deposit for eligible single parents — no LMI, no first home buyer requirement
Min deposit
2%
No LMI
Who qualifies
- ✓ Single parent or legal guardian with at least one dependant
- ✓ Australian citizen or permanent resident aged 18+
- ✓ Does not need to be a first home buyer — previous owners eligible
- ✓ Purchasing as owner-occupier (must move in within 6 months)
- ✓ At least 2% genuine savings
- ✓ No income cap from 1 October 2025
- ✗ Single applicants only — cannot apply jointly
- ✗ Investment properties excluded
Queensland price caps (2026)
Brisbane, Gold Coast, Sunshine Coast$1,000,000
Other QLD regional areas$800,000
Sydney / NSW regional centres$1,500,000
Melbourne / Geelong$950,000
Perth$850,000
Best suited to
Single parents or legal guardians with dependants who want to purchase or re-enter the property market with as little as 2% deposit. Previous homeowners are eligible — this scheme is not limited to first home buyers.
Scheme 3 of 3 · Regional Buyers
First Home Guarantee — Regional Stream
5% deposit for first home buyers purchasing in eligible regional areas
Min deposit
5%
No LMI
Who qualifies
- ✓ Australian citizen or permanent resident aged 18+
- ✓ First home buyer purchasing in an eligible regional area
- ✓ Must have lived or worked in the region for 12+ months prior to purchase
- ✓ Purchasing as owner-occupier
- ✓ At least 5% genuine savings
- ✓ No income cap from 1 October 2025
- ✗ Major capital city suburbs excluded — confirm via Housing Australia regional checker
- → Now a stream within the First Home Guarantee (previously a separate scheme)
Queensland regional price caps (2026)
Gold Coast, Sunshine Coast (regional)$1,000,000
Townsville, Cairns, Toowoomba$800,000
Other QLD regional areas$800,000
NSW regional centres$1,500,000
VIC regional centres$950,000
Best suited to
First home buyers who have been living or working in a regional area for at least 12 months and want to purchase locally with a 5% deposit and no LMI. Use the Housing Australia regional checker to confirm your suburb is eligible before applying.
Scheme comparison at a glance
Use this table to identify which scheme fits your situation before speaking with James.
| Criteria | First Home Guarantee | Family Home Guarantee | Regional Stream |
|---|---|---|---|
| Minimum deposit | 5% | 2% | 5% |
| LMI payable | None | None | None |
| Must be first home buyer | Yes (or 10yr re-entry) | No (previous owners eligible) | Yes |
| Income cap | Removed Oct 2025 | Removed Oct 2025 | Removed Oct 2025 |
| Place limit | Unlimited | Unlimited | Unlimited |
| Joint applications | Yes (incl. friends/family) | No (single applicants only) | Yes |
| Regional residency required | No | No | Yes (12+ months) |
| Dependants required | No | Yes (at least one) | No |
| Owner-occupier only | Yes | Yes | Yes |
| Brisbane/QLD price cap | $1,000,000 | $1,000,000 | $800,000–$1,000,000 |
What does avoiding LMI actually save you?
Without the guarantee, a buyer with a 5% deposit pays LMI — a one-off premium that protects the lender (not you) against default. On a $700,000 purchase with 5% down, LMI can cost $20,000–$27,000 added to your loan. These schemes eliminate that cost entirely by having the government guarantee up to 15% of the loan value.
$500k purchase, 5% deposit
~$14,000 LMI saved
$700k purchase, 5% deposit
~$24,000 LMI saved
$900k purchase, 5% deposit
~$32,000 LMI saved
Not sure which scheme applies to you?
Eligibility depends on your property type, location, deposit amount, and application date. I'll confirm which scheme you qualify for and which participating lenders offer the best rates under that scheme.
Updated for 2025–26
Queensland stamp duty savings for first home buyers
Major changes took effect from 1 May 2025. First home buyers purchasing a new home or vacant land now pay zero stamp duty with no price cap. Savings on established homes have also improved. Select your property type below.
Maximum saving — new home
$47,000+
$0 stamp duty + $30,000 FHOG on eligible new builds under $750k
Maximum saving — established
$24,525
Full exemption on established homes up to $700,000
New home price cap
None
Zero stamp duty on new builds regardless of price — from 1 May 2025
| Purchase price | Standard duty (investor) | First home buyer duty | Your saving |
|---|---|---|---|
| $500,000 | $15,925 | $0 | Save $15,925 |
| $600,000 | $20,025 | $0 | Save $20,025 |
| $700,000 | $24,525 | $0 | Save $24,525 |
| $800,000 | $29,025 | $0 | Save $29,025 |
| $1,000,000 | $38,850 | $0 | Save $38,850 |
| $1,200,000 | $49,525 | $0 | Save $49,525 |
From 1 May 2025, eligible first home buyers purchasing a new home, off-the-plan, house and land package, or vacant land to build pay zero transfer duty regardless of purchase price. No value cap applies. Contract must be signed on or after 1 May 2025.
Not sure which concession applies to you? Eligibility depends on your property type, contract date, and whether you intend to live in the property. I'll check your situation and make sure you don't miss a dollar in savings.
Call James →* Figures are indicative. Standard duty calculated using Queensland transfer duty rates. First home buyer duty based on current QLD Revenue Office concession rules. Always confirm your exact liability with your solicitor or conveyancer at the time of purchase. Rules subject to change.
Building your first home
Construction loans for first home buyers
If you're buying land and building, or purchasing a house and land package, you'll need a construction loan. These work differently to a standard home loan — and understanding the structure upfront can save you a lot of stress during your build.
What is a construction loan?
A construction loan is a short-term facility that funds your build in stages as work is completed. Instead of receiving the full loan amount upfront, funds are released progressively — meaning you only pay interest on what has been drawn down, not the full loan balance.
How it differs from a standard home loan
With a standard home loan, the full amount is drawn at settlement and interest accrues on the entire balance immediately. A construction loan is interest-only during the build, then converts to a principal and interest loan once construction is complete and the certificate of occupancy is issued.
The 6 progress payment stages
Your builder will call on funds at each stage of construction. Your lender inspects the work before releasing each payment.
1
Deposit
Paid to the builder when the building contract is signed. Covers preliminary costs including plans, engineering, and council approvals.
Typically 5% of build cost2
Base / Slab
Released once the foundation or concrete slab is poured and inspected. This is typically the largest single draw.
Typically 15–20% of build cost3
Frame
Released when the wall frames, roof trusses, and structural frame are erected and council-inspected.
Typically 20% of build cost4
Lockup
Released when the home is weather-tight — external walls, roof, windows, and doors are all in place.
Typically 20–25% of build cost5
Fixing / Fitout
Released when internal fitout is substantially complete — plasterboard, cabinetry, fittings, and flooring installed.
Typically 20–25% of build cost6
Practical completion
Final payment released when the build is complete, the certificate of occupancy is issued, and the handover inspection is passed. Your loan converts from interest-only to principal and interest at this stage.
Typically 10–15% of build costFirst home buyers building new: you may qualify for significant upfront savings
When you build new, two major benefits can stack — but they have different rules. The $30,000 Queensland First Home Owner Grant applies to new builds where the total home and land value is under $750,000 (contracts signed before 30 June 2026). Separately, from 1 May 2025, eligible first home buyers pay zero stamp duty on new homes and vacant land with no price cap — so even builds above $750,000 attract no stamp duty, they simply won't qualify for the FHOG.
FHOG grant
$30,000
FHOG price cap
Under $750,000
Stamp duty — new home
$0 (no price cap)
Construction loan vs standard home loan
Understanding the key differences helps you plan your budget more accurately during the build period.
Construction loan
Funds released in stages
- ✓ Interest charged only on funds drawn — lower repayments during build
- ✓ Lender inspects work at each stage before releasing funds
- ✓ Converts to principal and interest at completion
- ✓ Can include land purchase and build cost in one facility
- → Fixed-price building contract typically required by lender
- → Progress inspections add time between each draw
Standard home loan
Full amount drawn at settlement
- ✗ Interest charged on full balance from day one
- ✓ Simpler — no stage inspections or draw schedules
- ✓ Suitable for established homes and turnkey purchases
- ✗ Cannot be used for land-and-build without a construction component
- → Principal and interest repayments begin immediately
- → No staged release — lender does not inspect build progress
Building your first home? Let's structure it correctly from the start.
Construction loans involve more moving parts than a standard purchase. I'll walk you through the draw schedule, lender requirements, and how to maximise your grant and stamp duty savings.
Know your numbers
What affects your borrowing capacity?
Lenders don't just look at your income. They assess your full financial picture — and small differences between lenders can result in vastly different borrowing limits. Here's what actually moves the number.
Net income after tax
Lenders assess serviceability on your net take-home pay after income tax and Medicare levy — not your gross salary. A $160,000 combined income becomes approximately $10,300/month after tax.
Employment type
PAYG full-time income is assessed most favourably. Casual, contract, and self-employed income may be averaged or discounted depending on the lender and length of time in the role.
Living expenses
Lenders use the higher of your declared expenses or the HEM benchmark for your household size. Declaring lower than actual expenses doesn't help — lenders apply HEM as a floor.
Existing debts
Car loans, personal loans, BNPL, and credit card limits all reduce capacity — even cards you don't use. Lenders assess the full credit card limit, not your outstanding balance.
HECS-HELP debt
Compulsory HECS repayments are treated as an ongoing liability. A $60,000 HECS debt can reduce borrowing capacity by $50,000–$90,000 depending on your income and the lender.
APRA 3% buffer + DTI cap
Lenders must assess repayments at your rate plus 3%. From February 2026, a 6× gross income DTI cap also applies — whichever limit is lower determines your maximum borrowing.
Common capacity reducers — and by how much
These are the factors that most commonly reduce borrowing capacity for first home buyers, often without them realising it before they apply.
🎓
HECS-HELP debt ($60,000)
Treated as a recurring liability based on your compulsory repayment rate. The higher your salary, the larger the obligation — and the bigger the impact on capacity.
Reduces capacity by approx. $50,000–$90,000💳
Credit card ($10,000 limit)
Lenders assess credit card limits as if fully drawn. An unused $10,000 card reduces capacity significantly — consider reducing limits before applying.
Reduces capacity by approx. $40,000–$55,000🚗
Car loan ($400/month)
Existing loan repayments reduce your assessed surplus income. A $400/month car loan is factored at the full repayment amount when calculating what you can afford.
Reduces capacity by approx. $60,000–$80,000👶
Number of dependants
Each dependant increases the HEM benchmark lenders apply to your expenses — regardless of actual spending. More dependants equals lower assessed surplus.
Reduces capacity by approx. $20,000–$40,000 per dependantQuick borrowing capacity estimate
This gives you a ballpark figure only. Actual capacity varies significantly between lenders — speak with James for an accurate assessment across 40+ lenders.
Estimated borrowing capacity
Why two lenders can give you very different amounts
Not all lenders assess income, expenses, and liabilities the same way. One lender might include your overtime in full while another discounts it by 20%. One might assess your credit card limit at 3% per month, another at 3.8%. These differences compound — meaning the gap between lenders on the same application can easily be $80,000–$150,000 or more. As a broker with access to 40+ lenders, part of my job is identifying which lender's policies best suit your specific income type, debt profile, and deposit position.
Want an accurate figure across multiple lenders?
I'll run your numbers through our lender panel and identify which lenders give you the strongest borrowing position — before you start house-hunting.
Now you know the estimated borrowing limit -
Understand your repayments before you start house-hunting
Use the home loan repayment calculator to see how different loan amounts, interest rates and loan terms affect your budget.
Home Loan Repayment Calculator
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Assumptions & notes
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The process explained
How buying your first home actually works
From preparing your finances to picking up the keys — here's every step of the first home buyer journey, in the order they happen. Filter by phase or read through the full process.
Phase 1
Prepare
4–12 weeks
Phase 2
Pre-approval
1–3 weeks
Phase 3
Search & buy
4–16 weeks
Phase 4
Settlement
4–6 weeks
1
Understand your financial position
Before you do anything else, get a clear picture of where you stand. This means knowing your income, expenses, existing debts, credit card limits, HECS balance, and how much genuine savings you have. This forms the foundation of your entire application.
Check your credit file — use Equifax or Experian for a free copy
Use the borrowing capacity estimator on this page to get a ballpark figure
Identify any debts or credit card limits you can reduce before applying
2
Build your deposit and savings history
Most lenders require genuine savings — typically 5% of the purchase price held in your account for at least 3 months. Gifts from family, grants, and windfalls usually don't count as genuine savings on their own.
Keep savings in one account with a consistent savings history — don't move funds around unnecessarily
If using a guarantor, genuine savings requirements may be waived — check with your broker
The $30,000 FHOG is paid at settlement — it cannot substitute for your upfront genuine savings
3
Speak with a mortgage broker
This is the most valuable step you can take early. A broker reviews your full financial position, identifies the right lender and loan structure for your situation, checks your scheme eligibility, and prepares your application — at no cost to you.
Bring payslips, bank statements (3 months), tax returns if self-employed, and ID
Your broker will confirm which government scheme you're eligible for before applying
Discuss your target purchase price, property type, and ideal timeframe
4
Submit your pre-approval application
Pre-approval confirms how much a lender is willing to lend you, subject to a suitable property being found. It gives you a clear budget and signals to agents that you're a serious buyer.
Only apply with one lender at a time — multiple applications create multiple credit enquiries
Pre-approval is typically valid for 90 days
For scheme applications, the lender must be a Housing Australia participating lender
⚠️ Don't change jobs, take on new debt, or make large purchases during this period — lenders re-verify your financial position at formal approval.
5
Receive pre-approval and confirm your budget
Once pre-approved, you have a confirmed upper limit to house-hunt within. Remember to account for stamp duty, conveyancing fees, building inspections, and moving costs on top of the purchase price.
Budget an additional 3–5% on top of your purchase price for upfront costs
QLD first home buyers may pay $0 stamp duty — confirm your exact liability with your solicitor
Engage a solicitor or conveyancer now — don't wait until you find a property
6
Search for your property
With pre-approval in hand, you can house-hunt with confidence. Attend inspections, research comparable sales in your target suburbs, and build relationships with local agents. The search phase can take anywhere from a few weeks to several months.
Use realestate.com.au and domain.com.au sold history to understand what properties are actually selling for
For new builds, confirm the contract price is within the scheme price cap before signing
If your search extends beyond 90 days, contact your broker to renew pre-approval
7
Make an offer or bid at auction
Private treaty purchases in Queensland include a cooling-off period. Auction purchases are unconditional — you must have finance confirmed before bidding. Never bid at auction on a conditional pre-approval alone.
Always order a building and pest inspection before going unconditional — even on new builds
In QLD, the standard cooling-off period on private treaty contracts is 5 business days
Send the signed contract to your solicitor and broker immediately on the day of signing
⚠️ At auction there is no cooling-off period and no finance condition. Only bid if your finance is formally approved and your broker has confirmed the property meets lender requirements.
8
Pay your holding deposit
On signing a contract, you'll typically pay an initial holding deposit of $1,000–$2,000, with the balance of the full deposit (usually 5–10% of the purchase price) due within a few days from your genuine savings.
Full deposit is held in the agent's trust account until settlement
Confirm the deposit amount and payment deadline in the contract before signing
A deposit bond can be used if savings are in a term deposit — discuss with your broker
9
Formal loan approval
Once you have a signed contract, your broker submits for formal unconditional approval. The lender orders a property valuation and reviews your full application one final time. Formal approval means the lender is committed to funding the loan.
If the lender valuation comes in below purchase price, contact your broker immediately
Do not resign, take on new debt, or make major purchases until after settlement
Formal approval typically takes 3–7 business days from submission
10
Sign loan documents and return to lender
Once formally approved, your lender sends loan documents for signing. Your solicitor or conveyancer reviews these with you. Documents must be returned quickly — delays here can push back your settlement date.
Review all loan details carefully — loan amount, rate, repayment type, and fees
Arrange building insurance to be in place from the contract date — most lenders require this
Return signed documents to the lender as quickly as possible
11
Pre-settlement inspection
You're entitled to a final inspection of the property before settlement. This confirms the property is in the same condition as when you signed the contract and that all agreed inclusions are present.
Check all appliances, taps, lights, and doors are working
Confirm all fixtures and inclusions listed in the contract are still in place
Raise any issues with your solicitor immediately — don't wait until after settlement
12
Settlement — you're a homeowner
Settlement is handled by your solicitor and lender. Funds are transferred, title moves into your name, and you receive the keys. Your first repayment is typically due within 30 days. If building, your construction loan now begins drawing down at the first progress payment stage.
The FHOG (if applicable) is paid into your loan account at or shortly after settlement
Set up your offset account immediately — every dollar in offset reduces interest from day one
Direct your salary into your offset account to reduce interest while keeping full access to funds
Ready to start the process?
The best time to speak with a broker is before you start house-hunting — not after you've found a property. I'll map out your full buying timeline, confirm your budget, and identify the right loan structure from the start.
No deposit? There's another way
How guarantor home loans work
A guarantor loan allows a family member to use the equity in their property as additional security for your loan. This means you can buy sooner without a deposit — and without paying Lenders Mortgage Insurance.
How the security structure works
Guarantor
Parents / family
Offers property equity as security
Lender
Bank / lender
Approves loan, no LMI required
Borrower
You
No money changes hands between the guarantor and borrower. The guarantor's property is registered as additional security only. The borrower makes all loan repayments and the guarantor is released once sufficient equity has been built.
What a guarantor actually does
A guarantor agrees to be responsible for part of the loan if the borrower defaults. They offer equity in their own property as additional security — covering the gap between your deposit and 20% of the purchase price. No cash changes hands. The guarantor's property is simply registered as a second security with the lender.
Why it removes LMI
LMI is charged when a loan exceeds 80% of the property value. With a guarantor, the lender holds security over two properties — yours and the guarantor's. This brings the effective LVR below 80%, eliminating the LMI premium entirely. On a $700,000 purchase, that can save $20,000–$27,000 upfront.
What the borrower is responsible for
The borrower makes all loan repayments. The guarantor is not required to contribute to repayments under normal circumstances. The borrower's goal is to build sufficient equity so the guarantor can be released from their obligation — typically within 2–5 years.
How long does the guarantee last?
The guarantee remains in place until the loan-to-value ratio drops below 80% — through loan repayments, property value growth, or both. Once that threshold is reached, the borrower can apply to have the guarantee released. Most guarantors are released within 2–5 years.
Who can be a guarantor?
Lender policies vary, but most have similar requirements for both the borrower and the guarantor.
🏠 Guarantor requirements
- ✓ Must own property in Australia with sufficient equity
- ✓ Typically an immediate family member — parent, sibling, or spouse
- ✓ Must have a good credit history
- ✓ Must have sufficient income or assets to service the guarantee if called upon
- ✓ Must receive independent legal advice before signing
- → Some lenders accept extended family — policies vary
- ✗ Friends and non-family members are generally not accepted
- ✗ Guarantors with existing mortgage stress may not meet lender requirements
👤 Borrower requirements
- ✓ Standard serviceability requirements apply — income, expenses, debts
- ✓ Genuine savings may be waived by some lenders (varies by lender)
- ✓ Good credit history required
- ✓ Must demonstrate ability to service the full loan repayment
- → Some lenders still require a small deposit — not all will lend 100% + costs
- → Borrowing capacity is still assessed at the standard assessment rate + 3% buffer
- ✗ A guarantor does not increase your borrowing capacity — it only removes the deposit requirement
How and when the guarantor is released
The guarantee is not permanent. Three conditions can trigger a release — most borrowers achieve this within 2–5 years.
01
Loan repayments
As you pay down your loan, your equity grows. Once the loan balance drops below 80% of your property's value, you can apply for a guarantee release.
02
Property value growth
If your property increases in value, your LVR improves even without extra repayments. A lender valuation is ordered to confirm the new value before release is approved.
03
Refinancing
You can refinance once you have sufficient equity. The new lender assesses your position on standalone security — if you're below 80% LVR, the guarantor is no longer needed.
04
Lump sum payment
If you receive a windfall — inheritance, bonus, or sale of another asset — paying down the loan below 80% LVR in one go allows you to request an immediate release.
Risks both parties need to understand
A guarantor arrangement involves real legal and financial obligations. Both the borrower and guarantor should understand the risks before proceeding.
Guarantor's property is at risk
If the borrower defaults and the lender cannot recover the full debt from the borrower's property, the lender can pursue the guarantor's property. This is rare but a real legal exposure.
Impact on guarantor's borrowing capacity
While the guarantee is in place, it appears as a contingent liability on the guarantor's credit file. This can reduce the guarantor's ability to borrow for their own purposes.
Relationship risk
Financial obligations between family members can create stress, especially if repayments are missed or the guarantee takes longer to release than expected. Clear communication upfront is essential.
Independent legal advice is mandatory
Most lenders require the guarantor to obtain independent legal advice before signing. The guarantor should fully understand their obligations before committing — this is not a formality.
Guarantor loan vs other low-deposit options
Comparing the main pathways for buyers who don't yet have a 20% deposit.
| Feature | Guarantor loan | First Home Guarantee (5%) | Standard 5% + LMI | Deposit boost loan |
|---|---|---|---|---|
| Minimum deposit | $0 | 5% | 5% | 2–5% (borrowed) |
| LMI payable | None | None | Yes — $14k–$32k+ | None |
| Family member required | Yes | No | No | No |
| Additional cost to borrower | None | None | LMI premium | Deposit loan repayments |
| Genuine savings required | Sometimes waived | Yes — 5% | Yes — 5% | Varies by lender |
| Impact on third party | Yes — guarantor exposed | None | None | None |
| Time to release obligation | 2–5 years typically | N/A | N/A | Loan term of deposit product |
| Best suited to | Buyers with supportive family who own property | Buyers with 5% genuine savings | Buyers wanting speed over cost | Buyers without family support |
⚠️
A guarantor arrangement is a significant legal commitment. It should never be entered into casually or under family pressure. The guarantor must obtain independent legal and financial advice before signing. As your broker, I will walk both parties through the obligations, risks, and release strategy before any application is submitted.
Considering a guarantor loan?
I'll assess whether a guarantor structure suits your situation, identify which lenders offer the most favourable guarantor policies, and outline a clear timeline for releasing the guarantee.
No scheme eligibility? No guarantor?
Deposit boost loan — another pathway to ownership
If you don't qualify for government guarantee schemes and don't have family equity to use as a guarantor, there is still a way to buy without a 20% deposit saved. A deposit boost loan covers the deposit for you — so you can buy now rather than spending years saving.
High income, low savings
You earn well and can comfortably service a mortgage — but haven't been able to accumulate a 20% deposit. This product bridges that gap.
Income above scheme caps
If your household income is above government scheme thresholds, a deposit boost loan has no income cap and no place restrictions.
Previously owned property
You've owned a home before and don't qualify as a first home buyer. A deposit boost loan doesn't require first home buyer status — previous owners are eligible.
Property above price caps
Government schemes have property price caps. A deposit boost loan has no purchase price limit — if you can service the loans, the property price is not a barrier.
How the two-loan structure works
Loan 1 · Deposit boost loan
20% of purchase price
Your deposit — borrowed
- → Covers the full 20% deposit requirement
- → Principal & interest, variable rate
- → 15-year term — paid alongside your main loan
- → Upfront fee: 1.1%–2.2% of purchase price
- → Buyer's agent service included at no extra cost
- → No LMI payable
Loan 2 · Standard home loan
80% of purchase price
Your main mortgage
- → Standard 80% LVR loan — no LMI
- → Access to competitive 80% LVR rates
- → Sourced from a range of participating lenders
- → 25–30 year term — standard mortgage
- → Principal & interest repayments
- → Offset account available (lender-dependent)
Both loans run simultaneously. You make repayments on both. The deposit boost loan clears within 15 years — your main mortgage continues on its standard term. You need sufficient income to service both loans comfortably at the same time.
1.1–2.2%
Upfront Low Deposit Premium of purchase price
$0
LMI payable — avoided entirely with 20% deposit covered
None
Income cap — no limit on household income
None
Purchase price cap — no property value limit
15 yrs
Deposit boost loan term alongside your main mortgage
Included
Buyer's agent service — property search, negotiation & auction
How it compares to other low-deposit options
Each pathway suits a different buyer profile. This comparison helps identify which option fits your situation.
| Feature | Deposit boost loan | First Home Guarantee | Guarantor loan | Standard 5% + LMI |
|---|---|---|---|---|
| Minimum deposit required | Fees only (stamp duty + premium) | 5% genuine savings | $0 in some cases | 5% genuine savings |
| LMI payable | None | None | None | Yes — $14k–$32k+ |
| First home buyer required | No | Yes (or 10yr re-entry) | No | No |
| Income cap | None | Removed Oct 2025 | None | None |
| Property price cap | None | Yes — varies by region | None | None |
| Family member required | No | No | Yes | No |
| Additional cost | 1.1–2.2% upfront + deposit loan repayments | None | Legal costs only | LMI premium upfront |
| New builds / construction | No — established properties only | Yes | Yes | Yes |
| Investor eligible | No — owner-occupier only | No | Some lenders | Yes |
| Buyer's agent included | Yes — included in fee | No | No | No |
⚠️
Owner-occupier only. A deposit boost loan is not available for investment properties. You must intend to live in the property you purchase.
⚠️
Two loans running simultaneously. You will be servicing both the deposit loan and your primary mortgage at the same time for up to 15 years. Your income must comfortably support both repayments — this is assessed carefully before approval.
⚠️
You still need funds for upfront costs. The deposit boost loan covers your 20% deposit — but you still need to cover stamp duty, the Low Deposit Premium (1.1%–2.2%), and any other purchase costs from your own funds.
⚠️
Established properties only — construction not available. A deposit boost loan cannot be used to fund a new build, house and land package, or construction contract. It applies to established residential properties only. If you are planning to build, speak with me about alternative low-deposit pathways.
Not sure if a deposit boost loan suits your situation?
It's a powerful option for the right buyer — but it's not right for everyone. I'll assess your income, savings, and goals and tell you honestly whether this pathway makes sense, or whether another option serves you better. No obligation. No cost.
An alternative first step
Rentvesting — buy where you can afford, live where you want
Rentvesting is a strategy where you purchase an investment property in an affordable area while continuing to rent where you live. It lets you get into the property market sooner — without compromising on where you want to live.
📣
Important — 2026 Federal Budget changes to negative gearing (subject to parliament)
The May 2026 Federal Budget proposed limiting negative gearing to new builds only from 1 July 2027. For established properties purchased after 7:30pm AEST on 12 May 2026, rental losses will be quarantined to residential property income only — they cannot be offset against wages or salary. Losses can still be carried forward against future property income. New builds retain full negative gearing access. These changes are proposals only — they are subject to parliamentary passage and are not yet law. Speak with a qualified tax adviser before making investment decisions.
What is rentvesting?
You buy a property in a suburb or city where prices are within your budget — but you don't live in it. You rent it out as an investment, collecting rental income to help cover the mortgage. Meanwhile, you continue renting in the area where you actually want to live, whether that's for work, lifestyle, or family reasons.
Why do people choose it?
The primary reason is affordability. In many cases, buying where you can afford means entering the market years earlier than waiting to save for a property in your preferred suburb. The investment property builds equity over time — which you can later use as a deposit for the home you actually want to live in.
How a rentvesting strategy typically works
Most rentvestors follow a similar path to build equity before transitioning to owner-occupier.
💰
Save deposit
Build genuine savings — typically 10–20% of the investment property price
🏠
Buy investment property
Purchase in an affordable, high-growth or high-yield area
💵
Rent it out
Rental income offsets your mortgage — you continue renting where you live
📈
Build equity
Property grows in value. Loan reduces. Equity accumulates over time
🎉
Access equity
Use built equity as deposit for your owner-occupied home — where you want to live
Advantages and trade-offs
Rentvesting is not right for everyone. Understanding both sides clearly is essential before committing.
✓ Advantages
- ✓ Enter the property market sooner — don't wait years for prices in your preferred suburb
- ✓ Rental income helps service the investment mortgage
- ✓ New builds: investment loan interest remains fully tax-deductible against all income including wages — under current and proposed rules
- ✓ Depreciation on a new build can generate further tax deductions
- ✓ Property equity grows while you remain flexible about where you live
- ✓ First home buyer grants and stamp duty concessions preserved for your future owner-occupied purchase
- ✓ Portfolio grows — can continue to build investment holdings over time
✗ Trade-offs
- ✗ Miss out on FHOG and stamp duty concessions on the investment purchase — these require owner-occupation
- ✗ Paying rent while owning a property can feel counterintuitive
- ! Established properties after 12 May 2026: rental losses quarantined to property income only — cannot offset wages (proposed from 1 July 2027, subject to parliament)
- ✗ Investment property expenses — rates, insurance, maintenance, property management — are your responsibility
- ✗ Rental income is taxable, even though loan interest may be deductible
- ✗ Capital gains tax applies on sale — no CGT main residence exemption
- ✗ Vacancy periods mean no rental income — mortgage still needs servicing
- ✗ Landlord obligations — tenant management, property condition, compliance
Negative gearing tax treatment — new build vs established property
Applies to residential investment properties purchased after 12 May 2026 · Proposed from 1 July 2027 · Subject to parliamentary passage
✓ New build / new construction
Full negative gearing retained
✓ Rental losses can be offset against all income — including wages and salary
✓ Full tax deductibility of investment loan interest retained
✓ Depreciation deductions available on new build
✓ CGT — choice of 50% discount or inflation-adjusted method from 1 July 2027
✗ Established property (after 12 May 2026)
Negative gearing quarantined Proposed
✗ Rental losses cannot be offset against wages or salary income
→ Losses quarantined — can only be offset against residential property income
→ Excess losses carried forward to future years against property income
✗ CGT — 50% discount replaced with inflation-adjusted method, 30% minimum tax rate
🎯
Can you still access first home buyer benefits?
This is the most common question rentvestors ask. If you buy an investment property first and never live in it, you retain first home buyer status — as long as you have never previously owned and lived in a residential property anywhere in Australia.
FHOG ($30,000 QLD): Still available when you later purchase a new home as owner-occupier — provided you have never previously owned and lived in a residential property in Australia.
Stamp duty concessions: Still available on your owner-occupied purchase — holding an investment property you never lived in does not disqualify you.
First Home Guarantee: Available when you purchase your owner-occupied home — investment property ownership does not affect eligibility under current rules.
Critical rule: You must never have lived in a property you owned anywhere in Australia. Renting out a property and never living in it preserves your first home buyer status. Always confirm current eligibility rules with your broker before purchasing.
Illustrative example — how equity builds over time
Buyer purchases a new build investment property, rents it out, and builds equity to fund a future owner-occupied purchase. New build chosen to retain full negative gearing access under proposed rules.
Purchase price
$550,000
New build investment — affordable growth area
Deposit (10%)
$55,000
Genuine savings over 2–3 years
Rental income
$550/wk
~$28,600 pa — offsets mortgage repayments
Value after 5 years
$720,000
At modest 5.5% average annual growth
Equity built
~$230,000
Growth + loan repayments over 5 years
Usable equity
~$130,000
Available as deposit for owner-occupied home (to 80% LVR)
This example is illustrative only and uses a new build to reflect the most tax-advantaged position under current and proposed rules. Property growth rates, rental yields, and equity outcomes vary significantly by location and market conditions. These figures do not constitute financial advice.
Who rentvesting suits best
It's not the right strategy for everyone — but for the right buyer, it can significantly accelerate the path to property ownership.
City professionals
Living in Sydney or Melbourne where buying is out of reach — but want to get into the market and build equity now rather than waiting.
Lifestyle renters
Happy renting near work or the city for now, but want to be building property wealth rather than paying someone else's mortgage indefinitely.
Strategic first home buyers
Want to enter the market in a strong growth area now, build equity, and use that to buy their preferred owner-occupied home in 3–5 years.
Buyers preserving grants
Deliberately buying investment first — never living in it — so first home buyer status, FHOG, and stamp duty concessions remain available for their future owner-occupied purchase.
⚠️
Rentvesting is an investment strategy — not just a home buying decision. It involves tax implications, landlord responsibilities, and financial risk. The tax treatment of investment properties is changing under proposed 2026 Federal Budget legislation — the rules differ significantly between new builds and established properties purchased after 12 May 2026. The information on this page is educational and does not constitute financial or tax advice. Speak with both a mortgage broker and a qualified tax adviser before making any investment decisions.
Considering rentvesting as your first step?
I'll help you assess whether the numbers stack up, structure the loan correctly for an investment purchase, and map out the path to your owner-occupied home.
Make your loan work harder
Offset accounts and redraw facilities explained
Most first home buyers focus on getting the lowest interest rate. But how you structure your loan and where you park your cash can save just as much — sometimes more. Understanding offset accounts and redraw facilities is one of the most practical things you can do from day one.
What is an offset account?
An offset account is a transaction account linked to your home loan. The balance in the account is offset against your loan balance when calculating daily interest. If your loan balance is $600,000 and you have $20,000 in your offset account, you only pay interest on $580,000. You still have full access to the $20,000 at any time — it's just working to reduce your interest while it sits there.
What is a redraw facility?
A redraw facility allows you to make extra repayments on your home loan and then withdraw those funds later if needed. Unlike an offset account, the extra money is paid directly into the loan, reducing your balance and the interest charged. You can redraw those extra repayments later — but access is less immediate than an offset account, and some lenders have minimum redraw amounts or fees.
How an offset account reduces your daily interest
Loan balance
$600,000
Outstanding loan
−
Offset balance
$20,000
Your savings / salary
=
Interest charged on
$580,000
Not $600,000
Interest is calculated daily. Every dollar in your offset account reduces the balance interest is charged on — for every day it's there. Directing your salary into your offset account and spending from it keeps your average balance higher throughout the month, maximising the interest saving.
Offset account vs redraw facility — key differences
Both reduce interest. But they work differently and suit different situations.
| Feature | Offset account | Redraw facility |
|---|---|---|
| How it reduces interest | Balance offsets loan — interest charged on net amount daily | Extra repayments reduce loan balance directly |
| Access to funds | Immediate — works like a normal bank account with debit card | Varies — may require application, minimum amounts, or processing time |
| Funds appear on your loan | No — kept separate, offset against balance | Yes — paid into the loan, reducing your balance |
| Risk of lender restricting access | Low — offset is a separate account | Possible — some lenders can restrict redraw in hardship scenarios |
| Suitable for daily spending | Yes — salary in, spend from, card access | No — not designed as a transaction account |
| Typically available on | Variable rate loans | Most variable and some fixed rate loans |
| Fixed rate loans | Rarely available on fixed rate | Sometimes available with caps on extra repayments |
Offset account interest saving calculator
See how much interest your offset balance could save over the life of your loan.
Average amount sitting in your offset over the year
Total interest saved over loan term
Annual interest saving
Per year, at current offset balance
Monthly interest saving
Per month
Loan years saved
Approximate time off loan term
Indicative estimate only. Assumes offset balance remains constant over the loan term. Actual savings depend on balance fluctuating daily, rate changes, and repayment behaviour. Does not account for compounding effects of reduced loan balance over time.
How to get the most from your offset account
The more money sitting in your offset, for as long as possible, the more interest you save.
01
Direct your salary straight in
Have your employer pay your salary directly into your offset account. Every dollar sits against your loan from pay day until you spend it — maximising the interest saving throughout the month.
02
Spend from your offset, not a separate account
Use your offset account as your everyday transaction account. The longer money sits in the offset before being spent, the more interest it saves — even for a few days.
03
Pay expenses at end of cycle, not beginning
If you can time bill payments toward the end of their due cycle rather than immediately, your offset balance stays higher for longer — compounding your daily interest saving.
04
Park emergency funds in your offset
Instead of keeping an emergency fund in a savings account earning taxable interest, park it in your offset account. It reduces your loan interest at your full loan rate — often better than any savings rate after tax.
05
Use a credit card for daily spending
Pay daily expenses on a credit card with an interest-free period, keep the cash in your offset until the card is due, then pay it in full. Your offset balance stays higher throughout the month. Only works if the card is paid in full every cycle — no exceptions.
06
Avoid mixing offset with investment loans
For investment properties, using a redraw facility can contaminate the loan for tax deductibility purposes. Keep investment loan offset accounts strictly separate from personal spending to preserve the tax deduction on investment interest.
⚠️
Tax note — investment property owners
If you ever convert your home to an investment property or have an investment loan, the way you use your offset account and redraw facility has significant tax implications. Redrawing from an investment loan for personal use can reduce the deductible portion of the loan interest. Always speak with your accountant before making structural changes to a loan used for investment purposes.
Want your loan structured correctly from day one?
The right loan structure — including how your offset account is set up — can save tens of thousands over the life of your loan. I'll make sure it's right from settlement day.
Why work with a broker
Why first home buyers use a mortgage broker
Walking into your bank and asking for a home loan is the most common approach — and often the most expensive. A mortgage broker gives you access to a panel of lenders, compares policies on your behalf, and structures your loan correctly from the start.
Access to 40+ lenders
Your bank can only offer their own products. A broker compares dozens of lenders — major banks, second-tier lenders, and specialist lenders — to find the one whose policies best suit your income, deposit, and situation.
Policy knowledge, not just rates
The lowest rate doesn't always mean the best loan. Lenders assess income, HECS debt, and credit cards differently. A broker identifies which lender's policies give you the strongest application — which can mean $80,000–$150,000 more borrowing capacity.
Scheme eligibility confirmed upfront
Government schemes have specific eligibility rules and participating lenders. A broker confirms what you qualify for and applies under the right scheme from the start.
Loan structure, not just loan approval
Getting approved is step one. Getting the right structure — split loans, offset accounts, correct ownership splits — is what determines how your loan performs over time.
Protects your credit file
Every lender application creates a credit enquiry. Multiple declined applications damage your score. A broker submits to the right lender the first time — minimising enquiries and maximising your chances of approval.
Manages the process end-to-end
From gathering documents through to settlement, a broker manages the application, liaises with the lender, chases valuations, and keeps your purchase on track.
Broker vs going direct to a bank
A direct comparison of what you get from each approach.
| What you get | Mortgage broker | Going direct to a bank |
|---|---|---|
| Number of lenders compared | 40+ lenders | 1 — their own products only |
| Cost to you | Free — broker paid by lender | Free |
| Lender policy comparison | Yes — assessed across the panel | No — one set of policies only |
| Government scheme expertise | Yes — all schemes, all lenders | Varies — depends on the banker |
| Loan structure advice | Yes — offset, splits, ownership | Limited — within their product range |
| Credit file protection | Yes — one application, right lender | Risk of multiple enquiries if declined |
| Post-settlement support | Yes — reviews, refinancing, equity | Varies |
| Obligation to act in your interest | Yes — Best Interests Duty (NCCP) | No — employed by the lender |
JS
James Sylvester
Mortgage Broker · Your Home Loan Consultant · North Lakes, Brisbane
15+
Years experience
40+
Lenders on panel
MFAA
Accredited member
I work with first home buyers across Brisbane, the Gold Coast, the Sunshine Coast, and nationally. My approach is strategy over rate — which means I focus on getting your loan structure right from day one, not just finding the lowest number. I'm accredited with over 40 lenders and operate under LMG Aggregation Group, one of Australia's largest broker networks.
MFAA Member
Credit Rep #400033
LMG Aggregation Group
Best Interests Duty compliant
What working with James looks like
From your first call through to settlement — here's what I do on your behalf.
1
Strategy call — understand your full picture
We review your income, expenses, deposit, debts, HECS, and goals. I assess your borrowing capacity across multiple lenders and confirm which government schemes you qualify for. No obligation.
2
Lender selection and loan structure recommendation
I identify the most suitable lender based on your situation — not just the headline rate. I recommend the right loan structure, including split loans, offset account setup, and repayment type.
3
Document collection and application preparation
I review your documents before submission to ensure everything is complete and correct. A clean, complete application gets processed faster and reduces the risk of delays.
4
Pre-approval submission and confirmation
I submit to the selected lender and manage the process through to conditional approval. Once approved, you have a confirmed budget to begin house-hunting with confidence.
5
Contract received — formal approval
Once you have a signed contract I submit for formal unconditional approval, manage the lender valuation, and keep you and your solicitor informed throughout.
6
Settlement and beyond
I attend to loan document signing, liaise with the lender on settlement timing, and follow up post-settlement to make sure your offset account is set up correctly. I review your loan periodically to ensure it stays competitive as your situation changes.
✅
A mortgage broker costs you nothing
Mortgage brokers are paid a commission by the lender when a loan settles — not by you. There is no fee to use my service. Under the Best Interests Duty, I am legally required to act in your best interest, not the lender's. The commission I receive is the same whether I recommend a major bank or a second-tier lender — so my recommendation is always based on what suits your situation best.
Ready to talk through your options?
A 20-minute strategy call is all it takes to understand your borrowing position, confirm your scheme eligibility, and map out your path to your first home.
Free · No obligation · 20 minutes
Book your first home buyer strategy call
In one short call I'll confirm your borrowing capacity, check your scheme eligibility, and outline the best loan structure for your situation. There's no cost and no obligation.
✓ No fee to use a broker
✓ 40+ lenders compared
✓ MFAA accredited
✓ Based in North Lakes, Brisbane
✓ Available nationally
20-minute call
A focused, practical conversation — not a sales pitch. We cover your situation and I give you a clear picture of where you stand.
Borrowing capacity confirmed
I'll run your numbers across lenders and give you a realistic borrowing range — not a calculator estimate.
Scheme eligibility checked
I'll confirm which grants, concessions, and guarantee schemes apply to your situation before you make any decisions.
Clear next steps
You'll leave the call knowing exactly what documents to gather, which lender suits you, and what your timeline looks like.
Phone
Location
North Lakes, Brisbane QLD
Service area
Brisbane · Gold Coast · National
Your Home Loan Consultant · James Sylvester · Credit Representative #400033 · LMG Aggregation Group · MFAA Member
Credit advice is provided under the National Consumer Credit Protection Act 2009. General information on this page does not constitute financial or legal advice. Always seek professional advice relevant to your individual circumstances before making financial decisions.
Be prepared
First home buyer document checklist
Having your documents ready before you apply is the single most effective way to speed up your pre-approval. Tick each item off as you gather it — your progress is saved in this session.
Your progress
0 of 0 items
Identity documents
All applicants
✓
Australian passport or foreign passport Required
Must be current. Foreign passport requires visa documentation.
✓
Driver's licence Required
Current Queensland or interstate licence. Primary photo ID if no passport.
✓
Medicare card Required
Used as secondary ID. Must show your name clearly.
✓
Visa documentation If applicable
Required for non-citizens. Must confirm permanent residency or eligible visa class.
Income — PAYG employees
Employees only
✓
2 most recent payslips Required
Must show employer name, gross income, pay period, and year-to-date figures.
✓
Most recent PAYG payment summary or ATO income statement Required
ATO income statement from myGov, or employer-issued payment summary for prior financial year.
✓
Employment contract or letter If applicable
Required if you've recently changed jobs, are on probation, or in a casual or fixed-term role.
✓
Evidence of overtime, allowances or bonuses If applicable
12 months history typically required for lenders to include variable income components.
Income — self-employed / business owners
Self-employed only
✓
2 years personal tax returns with ATO notices of assessment Required
Must be lodged and assessed — not just submitted. Both years required for most lenders.
✓
2 years business tax returns Required
Company, trust, or partnership returns as applicable. Must match personal return figures.
✓
2 years financial statements (P&L and balance sheet) Required
Accountant-prepared financial statements for the business.
✓
ABN registration and GST registration confirmation Required
ABN must be active. Most lenders require 2 years ABN history for standard assessment.
✓
Most recent BAS statements If applicable
Last 4 quarters of BAS may be required to support current-year income where tax returns are not yet lodged.
Bank statements & savings history
All applicants
✓
3 months bank statements — savings account Required
Must show your deposit/genuine savings balance building consistently. All pages required.
✓
3 months statements — all transaction accounts Required
Lenders assess your spending patterns and living expenses from transaction history.
✓
Evidence of rental payments (if currently renting) If applicable
Rental ledger or 3 months bank statements showing regular rental payments.
✓
Statutory declaration for gifted deposit If applicable
If any of your deposit has been gifted, the donor must sign a statutory declaration confirming it is non-refundable.
Existing debts & liabilities
If applicable
✓
Most recent credit card statements If applicable
For all cards — showing limit, balance, and minimum repayment. Include cards with $0 balance.
✓
Car loan / personal loan statements If applicable
Most recent statement showing outstanding balance, monthly repayment, and remaining term.
✓
HECS-HELP balance from ATO If applicable
Access via myGov / ATO online. Required if you have any outstanding HECS debt.
✓
BNPL account statements (Afterpay, Zip etc.) If applicable
Some lenders require evidence of all BNPL accounts. Limits are assessed as liabilities.
Property documents
Once you have a signed contract
✓
Signed contract of sale Required
Full contract including all schedules and special conditions. Required for formal approval.
✓
Building and pest inspection report Required
Some lenders require this before formal approval. Always recommended before going unconditional.
✓
Building contract and council-approved plans New build
Required for construction loans. Must be a fixed-price contract with council-approved plans.
✓
Land contract (separate from building contract) New build
For house and land packages — land and build are often two separate contracts. Both required.
✓
Builder's licence and insurance certificates New build
Lenders require evidence of builder's licence and home warranty insurance before approving construction loans.
Government scheme & grant documents
If applying for FHOG or scheme
✓
FHOG application form (Queensland Revenue Office) FHOG
Completed and signed. Your broker or solicitor typically lodges this on your behalf at settlement.
✓
Statutory declaration — first home buyer status Required
Confirming you have never previously owned or occupied residential property in Australia.
✓
Confirmation of participating lender (First Home Guarantee) If applicable
Scheme applications must be lodged through a Housing Australia participating lender. Your broker confirms this.
💡
Broker tip — get your documents right the first time
The most common cause of pre-approval delays is incomplete or incorrect documents — particularly bank statements missing pages, payslips without year-to-date figures, or tax returns not yet assessed by the ATO. When you work with me, I review your documents before submission and flag any issues upfront — so your application moves quickly and cleanly.
Ready to get your documents together?
Call me and I'll send you a personalised document list based on your employment type, deposit situation, and which scheme you're applying under.
What our client say
Francesca Menis
Verified by RateMyAgent
James was very helpful throughout the entire process. We are thrilled with the mortgage he secured for us, which came with fantastic interest rates. We would 100% recommend James to anyone in need of financial services."
Luke McNamara
Verified by RateMyAgent
James was incredibly helpful, providing a clear summary and detailed analysis of our options. He quickly assessed our situation and presented an alternative solution that worked perfectly for us. We are grateful for his expertise and will definitely refer friends and family to him in the future.
H Te Huna & H Hikaka
Verified by RateMyAgent
From our first call to James, he has been helpful and informative with the process. Without James, we would have never been able to be in our first home. We absolutely recommend James as a mortgage broker. We cannot wait to work with James again in the future. Thank you for all your hard work.
See what you could do with your home loan option
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15+ Years Experience | MFAA Accredited | Brisbane Mortgage Broker
Your guide to buying your first home with confidence
This page walks you through the key decisions to buying your first home – deposit size, government schemes, loan types, guarantor options, and whether to buy an established home, build, or even start as a rentvestor.
Whether you’re just starting to save or you’re ready to make an offer, I’ll help you understand your borrowing power, structure your loan correctly, and choose a pathway that fits your budget and long-term goals.
New to Home Loans? Mortgage Terminology Explained →
See Article: How to choose the lender to buy your first Home →
First Home Buyer Schemes Explained
Understand how the First Home Guarantee, Family Home Guarantee, and regional programs work.
Grants & Concessions You Could Qualify For
Learn about the $30,000 First Home Owner Grant and Queensland’s updated stamp duty rules.
Property investing while renting
Some first-home buyers choose to rentvest, buying an investment property while continuing to rent.
Buying With Family or a Guarantor
Explore guarantor loans and shared ownership options that help boost borrowing capacity.
Don’t Qualify? Deposit Boost Options
See how an OwnHome Deposit Boost Loan can reduce upfront cash requirements and help you buy sooner.
Your Step-by-Step Buying Timeline
Follow the typical journey from pre-approval to settlement so you know what to expect.
Common questions
First home buyer FAQs
Straightforward answers to the questions we hear most often from Queensland first home buyers.
Most lenders require a minimum 5% deposit, though 20% avoids Lenders Mortgage Insurance (LMI). Under the First Home Guarantee, eligible buyers can purchase with just 5% and pay no LMI at all. Certain schemes support eligible single parents with as little as 2%. Your deposit size directly affects your loan structure, so it's worth mapping out your options before you start saving toward an arbitrary number.
Queensland first home buyers can access three main federal programs: the First Home Guarantee (5% deposit, no LMI), the Family Home Guarantee (2% deposit for eligible single parents), and the Regional First Home Buyer Guarantee. On top of these, the Queensland First Home Owner Grant provides a $30,000 cash grant for eligible new builds, and stamp duty concessions can eliminate or significantly reduce transfer duty. From October 2025, income and price caps on the federal guarantee schemes were removed and places became unlimited.
In Queensland, the $30,000 FHOG is paid at or after settlement — not at the point of purchase. This means most lenders won't count it as part of your genuine savings. It can, however, be used to reduce your loan balance after settlement, cover purchase costs, or fund early repayments. If you're planning to use the FHOG to help with your deposit, it's important to discuss this with your broker early so the numbers are structured correctly.
A guarantor loan uses a family member's existing property equity as additional security, which means you can borrow without a deposit and avoid LMI. No money changes hands — the family member's property backs part of the loan. A deposit boost loan (such as through OwnHome) is a separate loan product that provides the deposit funds directly, which you then repay over time. Both can help you buy sooner, but they carry different risks, costs, and eligibility requirements.
Queensland first home buyers may receive a full transfer duty exemption on homes valued up to $700,000, and a partial concession for homes valued between $700,000 and $800,000. These thresholds apply to both established homes and new builds. For properties above $800,000, standard transfer duty rates apply. The concession is only available if you intend to live in the property — investment purchases are excluded. Savings can total tens of thousands of dollars depending on your purchase price.
Not always. Many lenders waive the genuine savings requirement when a family guarantor is supporting the loan, because the guarantor's equity acts as the security buffer. However, policies vary between lenders — some still require a small amount of savings to demonstrate financial discipline. As a broker, I compare lender policies to find the right fit for your specific situation.
HECS-HELP debt reduces your borrowing capacity because lenders factor in your compulsory repayment obligations when assessing your income. The impact depends on your debt balance and your income level. For example, a $50,000 HECS debt could reduce your borrowing capacity by $50,000–$80,000 depending on the lender. It won't prevent you from getting a loan, but it's an important number to account for when working out your budget.
The First Home Owner Grant and stamp duty concessions require you to live in the property — they are not available for investment purchases. However, some first home buyers choose to rentvest: they purchase an investment property first (without accessing the grant), continue renting where they live, and access grants when they purchase their owner-occupied home later. This can be a valid strategy depending on your financial goals, but eligibility rules are strict and worth reviewing carefully.
Pre-approval timeframes vary by lender. Most lenders process applications within 3–10 business days once all documents are submitted. More complex applications — such as self-employed income, multiple income streams, or government scheme applications — can take longer. Having your documents ready before you apply is the most effective way to speed up the process. Pre-approval is typically valid for 90 days and gives you a clear upper limit when house-hunting.
There is no single universal minimum credit score — each lender uses its own assessment model. Generally, a score above 600 (on a 0–1200 scale) is considered acceptable by mainstream lenders, while scores above 700 open access to the most competitive rates and policies. A lower score doesn't automatically mean rejection, but it may limit your lender options or affect your interest rate. Checking your credit file before applying is always recommended so there are no surprises.
Not sure which pathway applies to you?
Book a no-obligation strategy call and I'll map out your deposit options, borrowing power, and which schemes you qualify for.
How We Help First Home Buyers Succeed
Personalised Guidance – We take the time to understand your goals and explain every step clearly.
Borrowing Capacity– Know your borrowing power upfront so you can shop with confidence.
The required amount depends on your employment type and income deposit position.
What can affect your approval? We’ll ensure you don’t miss a dollar in government support.
Avoid Costly Mistakes – From hidden loan features to missed savings, we’ll protect your best interests.
Buying your first home is one of life’s biggest milestones.
Buying your first home is one of life’s biggest milestones. With the right strategy and access to the latest First Home Buyer programs and government schemes, you could secure your home sooner — even with a smaller deposit.
We’ll guide you through every step, from buying at Auction vs Private Sale, understanding your borrowing power, to finding the right lender and a structure that aligns with your goals.
You’re in safe hands
15+ years mortgage experience
Accredited with 40+ lenders
Based in North Lakes, helping clients Australia-wide
Personalised, one-to-one advice
MFAA Accredited Member
Part of Australia’s largest aggregation group – LMG
Ready to discuss your options? Give us a call now.