An opportunity to buy your rental property
The Queensland State Housing Loan is a home loan to help you buy the social housing property you are renting. You need to be a Department of Communities' tenant and intend to continue living in the home.
Which houses are available to buy?
Not all departmental properties are for sale. Those not for sale include properties in very high demand areas, sites with future redevelopment potential, townhouses, units and cluster houses.
How does the loan work?
The loan is for owner-occupiers and, as long as you remain living in your home, you are entitled to a special discount on your interest rate and safeguards against steep rises in interest rates. If you do not live in the home, your interest rate will immediately switch to the standard variable interest rate.
Am I eligible for the loan?
To be eligible for a Queensland State Housing Loan you must:
- be an Australian citizen or permanent Queensland resident
- not own or part-own another property
- have a good history of managing credit and must not have other significant debts. You must consent to a credit check for your application to be considered
- have enough savings to meet the minimum deposit requirements and for other costs of a loan and buying a property (e.g. legal fees, stamp duty, insurance, etc)
- be able to afford to make the loan repayments without hardship
- earn under the household income limit set by the department.
Costs of the Queensland State Housing Loan
How much deposit do I need?
The minimum deposit is 5% of the purchase price (e.g. $10,000 for a $200,000 house). However, you may be eligible for a non-repayable deposit assistance grant for up to half of this amount. If this is your first home purchase, you may be eligible for the First Home Owners Grant, and this can be used towards your deposit.
What other costs will I have?
In addition to your deposit, there may be other costs including legal fees, stamp duty, rates adjustment and mortgage registration fees. Ask your solicitor for an estimate of these costs based upon your particular circumstances, as they do vary depending upon the purchase price and location of the house, and other factors. The department will help you with $100 towards the cost of independent financial advice.
As a home owner you will need to budget for the ongoing costs of property insurance, local government rates and water charges, and repairs and maintenance to the property. You need to insure your property for the full term of your loan. Your initial monthly loan repayments will be a maximum of 35% of your agreed continued income.
More information
Contact the department for more detailed information about the Queensland State Housing Loan, your eligibility, the amount you may borrow, estimated repayments and current interest rates:
loaninformation@communities.qld.gov.au
Phone
For all home loan enquiries, phone the Loan Information Hotline Monday to Friday, 8.30 to 5.00 pm for the cost of a local call* on 1300 654 322 or from outside Queensland call 07 3224 7202.
*Calls from mobile phones and pay phones may attract a higher charge.
Loan Delivery and Management
Loans and Debt Management
Department of Communities
GPO Box 690
Brisbane Qld 4001
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