Your opportunity to live the Australian dream
What is the loan?
The Queensland Housing Finance Loan helps eligible people build or buy a home. This loan is available across Queensland from the Department of Housing and Public Works. This home loan provides an opportunity to those who have the capacity and commitment to buy a home, but are unable to access finance from a private mortgage lender such as a bank or building society.
What does it offer?
- A choice of variable or fixed interest rate.
- Only 2% deposit needed.
- No mortgage insurance fees.
- No monthly account-keeping fees.
Am I eligible?
To be eligible for a Queensland Housing Finance Loan, you must:
- live in Queensland and be a citizen or permanent resident of Australia
- not own or part-own another property
- have a household income under $141,000 per annum
- intend to live in the home
- have a good history of managing credit
- not have significant other debts
- have an income that does not exceed the department's maximum allowable income
- demonstrate a regular and satisfactory savings history
- have sufficient savings to meet the minimum deposit and other costs - such as legal fees, stamp duty and insurance - associated with the loan and with buying or building a home
- be able to afford the loan without hardship
- have future earning potential for the term of the loan.
The department may ask you to provide evidence that you have been refused mortgage finance from a private lender.
What will it cost?
There are costs when buying or building a home with a Queensland Housing Finance Loan, including:
- a deposit of 2% of the purchase price of your home
- application fees
- financial advice. You will need to seek independent financial advice, for which you will be reimbursed up to $100 should your loan be approved, and
- mortgage registration fees. You will have to pay to have the department's mortgage over your home registered on your new home title.
How much can I borrow?
The amount you can borrow is based on:
- your gross and disposable income
- the term of the loan
- current interest rates
- the price of the home you want to build or buy.
How much will I repay?
You will have to repay the full amount of your loan, plus interest and any applicable fees and charges. The amount of your monthly repayments will depend on:
- the amount of your loan
- your income
- current interest rates
- the term of your loan.
Your initial monthly repayments will commence at 30% but will not be more than 35% of your agreed continued income. You must insure your home for the full term of the loan.
What other costs will I have?
You will also need to pay legal fees, stamp duty and registration fees. You should ask your solicitor for an estimate of these costs based on your particular circumstances, as they do vary depending on the purchase price, location of the house, and other factors.
Other costs associated with home ownership include moving costs, building and pest inspections, payment of council rates and ongoing maintenance. You must also fully insure the property for the term of the loan.
Home ownership will not suit everybody's lifestyle, financial capacity or personal goals, so consider all issues and costs before committing to buying a property. To help you make a decision, information about owning a home is available on this website.
We strongly recommend you obtain legal advice from your solicitor before signing any contract, mortgage or loan agreement.
For more information, contact the department.