Queensland First Home Guarantee Laws (2026)
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Sourced from Commonwealth Acts of Parliament, federal regulations, and official government guidance. State-level information reflects each state's own Acts and court decisions. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
The First Home Guarantee — formerly the First Home Loan Deposit Scheme — lets eligible first-home buyers in with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI). The Commonwealth, through Housing Australia, guarantees up to 15% of the property value back to the lender — which is what makes the LMI waiver work commercially.
Eligibility: Australian citizen aged 18+, single income up to $125,000 (or $200,000 combined for couples), and you can never have previously owned property in Australia. The property has to come in under the regional price caps — currently up to $900,000 in Sydney and $800,000 in Melbourne, with caps reviewed annually.
35,000 places open each financial year. They're allocated first-come, first-served — and they go fast. You apply through a participating lender, never directly through the government.
The sister scheme — the Regional First Home Buyer Guarantee — adds 10,000 places a year for buyers outside the capitals, on the same 5% deposit terms.
When does it apply?
- You are buying your first home and have never owned property in Australia.
- Your income is at or below $125,000 (single) or $200,000 (couple) in the previous financial year.
- You have saved at least a 5% deposit (but less than 20%).
- The property is below the price cap for your city or region.
- You intend to be an owner-occupier — investment properties are not eligible.
What to Do If You Are Declined for the Australian First Home Guarantee
- Check your eligibility on the Housing Australia website before house-hunting.
- Apply through a participating lender — the list is on the Housing Australia website and includes major banks and smaller lenders.
- Confirm the price cap for the area where you want to buy; caps differ between capital cities and regional areas.
- Move quickly — places fill up fast each financial year. New places open on 1 July.
- Combine with state first-home-buyer grants if applicable — the federal guarantee does not prevent you from claiming state incentives.
What should you NOT do?
- Don't apply directly to the government — the scheme only works through participating lenders.
- Don't assume the guarantee is a cash grant — the government does not give you money; it guarantees part of your loan to the lender.
- Don't buy an investment property under the scheme — you must live in the home. If you move out within the guarantee period you may need to refinance.
- Don't forget income caps apply to the previous financial year — check your ATO notice of assessment.
How Queensland differs from federal law
The federal First Home Guarantee is administered by Housing Australia. Queensland offers additional state-level first home buyer assistance, including stamp duty concessions and grants.
- The Queensland First Home Owners' Grant provides $30,000 for eligible first home buyers purchasing or building a new home valued at less than $750,000 (as of 2024). This is among the most generous first home owner grants in Australia.
- Queensland offers transfer duty (stamp duty) concessions for first home buyers. For homes valued up to $700,000, the transfer duty rate is reduced or eliminated. A concession also applies for homes valued between $700,000 and $800,000.
- The Queensland Housing Finance Loan (through the Department of Housing) provides low-deposit home loans for eligible Queenslanders who cannot access standard finance.
- Queensland's regional areas are eligible for additional support programs targeting first home buyers in rural and remote communities.
Additional Steps in Queensland
Apply for the federal First Home Guarantee through a participating lender. Apply for the Queensland First Home Owners' Grant through Queensland Revenue Office (qro.qld.gov.au). For transfer duty concessions, lodge your application at settlement through your solicitor or conveyancer.
Relevant Law: National Housing Finance and Investment Corporation Act 2018 (Cth); First Home Owner Grant Act 2000 (Qld); Duties Act 2001 (Qld)
Common Questions
What is the first home guarantee right in Australia?
The First Home Guarantee — formerly the First Home Loan Deposit Scheme — lets eligible first-home buyers in with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI). The Commonwealth, through Housing Australia, guarantees up to 15% of the property value back to the lender — which is what makes the LMI waiver work commercially.Eligibility: Australian citizen aged 18+, single income up to $125,000 (or $200,000 combined for couples), and you can never have previously owned property in Australia. The property has to come in under the regional price caps — currently up to $900...
When does first home guarantee apply?
You are buying your first home and have never owned property in Australia.Your income is at or below $125,000 (single) or $200,000 (couple) in the previous financial year.You have saved at least a 5% deposit (but less than 20%).The property is below the price cap for your city or region.You intend to be an owner-occupier — investment properties are not eligible.
What should I do if I am rejected for the First Home Guarantee in Australia?
Check your eligibility on the Housing Australia website before house-hunting.Apply through a participating lender — the list is on the Housing Australia website and includes major banks and smaller lenders.Confirm the price cap for the area where you want to buy; caps differ between capital cities and regional areas.Move quickly — places fill up fast each financial year. New places open on 1 July.Combine with state first-home-buyer grants if applicable — the federal guarantee does not prevent you from claiming state incentives.
What mistakes should I avoid with first home guarantee?
Don't apply directly to the government — the scheme only works through participating lenders.Don't assume the guarantee is a cash grant — the government does not give you money; it guarantees part of your loan to the lender.Don't buy an investment property under the scheme — you must live in the home. If you move out within the guarantee period you may need to refinance.Don't forget income caps apply to the previous financial year — check your ATO notice of assessment.
First Home Guarantee in other states
Same topic, different jurisdiction. Pick the one that applies to you.