Queensland housing finance loan

The Queensland Housing Finance Loan may be available for Queenslanders who can afford to buy or build a home but can’t get private finance from a bank or building society.

If you’re eligible, you can use this loan to buy an established house, unit, townhouse or duplex, or to build a house.

Eligibility

To be eligible for the 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 of less than $141,000 per annum
• intend to live in the home
• have a good credit history
• have no significant debts
• have a regular savings history
• have savings to cover the deposit and other costs, such as legal fees, stamp duty and insurance
• be able to afford the loan repayments without hardship
• have earning potential for the term of the loan.

Applying for the loan

To apply or receive more information, contact our loan hotline:

• email: hscsloaninformation@housing.qld.gov.au
• phone: 1300 654 322 (Monday–Friday, 8.30am–4.30pm)
• post:
  Loans and Debt Management
  Department of Housing, Local Government, Planning and Public Works
  GPO Box 690
  Brisbane Qld 4001.

What does the loan offer?

The loan offers:

• variable or fixed interest rate
• a minimum deposit of 2% of the purchase price, or the difference between the maximum loan you’re eligible for and the property's purchase price
• no mortgage insurance fees
• no monthly account-keeping fees.

What does the loan cost?

There are several upfront costs involved in buying or building a home with this loan.

These costs include:

• application fees
• independent financial advice (though you are reimbursed up to $100 if your loan is approved)
• mortgage registration fees
• a minimum deposit of 2% of the purchase price of your home, or the difference between the maximum loan you’re eligible for and the property’s purchase price. For example:
  1. You’re eligible to borrow a maximum of $200,000, but the property’s purchase price is $250,000. You need a deposit of $50,000 which is 20% of the purchase price.
  2. You’re eligible to borrow the full amount of $250,000 to purchase the property. You need a deposit of $5,000 which is 2% of the purchase price.

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.

You can get an estimate of the maximum loan you may be eligible for over the phone.

How much do I repay?

You need to repay the loan amount as well as interest and any fees and charges. Your monthly repayment amounts depend on:

• your loan amount
• your income
• current interest rates
• the term of your loan.

Your initial monthly repayments start at 30% of your agreed continued income, but aren't more than 35%.

You must insure your home for the full term of the loan.

What are the other costs?

You also need to pay:

• legal fees
• stamp duty
• registration fees.

These fees vary depending on the purchase price of your home, location and other factors.

Ask your solicitor for an estimate of these costs based on your circumstances.

First Home Owner Grant

If you’re buying or building a new home, you could be eligible for the Queensland First Home Owner Grant. This Queensland Government initiative helps first home owners get their new home sooner.