Interest rates on government home loans
This information is for Queensland Housing Finance Loan, Queensland State Housing Loan, and Pathways Shared Equity Loan customers.
If you get a home loan from the Queensland Government, you’ll repay the loan at either a fixed (3 years) or variable rate of interest.
Unlike banks, we don’t offer the option of a part-variable and part-fixed interest rate, known as a split rate.
Each type of mortgage interest rate has advantages and disadvantages.
Depending on the loan you choose, you may be able to change the type of rate we charge you.
To find out what our current rates are, call us on 1300 654 322 or email us.
Our home loans
| Product | Interest rate type | Able to change type |
|---|---|---|
| Queensland Housing Finance Loan | Fixed or variable | Yes |
| Pathways Shared Equity Loan (public housing) | Fixed or variable | Yes |
| Queensland State Housing Loan (public housing) | Variable only | No |
Fixed interest rate
A fixed interest rate is one that stays the same for a set period—in our case 3 years.
During or at the end of the 3 years, you can change the type of rate you’re charged.
Here are some of the pros and cons of a fixed rate:
Pros
- Protects you from interest rate rises for 3 years at a time.
- Knowing your repayment amount makes it easier to budget and manage your cash flow.
Cons
- You won’t benefit from any cuts we make to our home loan rates over the 3-year fixed term.
- Possible extra fees if you pay out your loan early or change from a fixed rate to another fixed or variable rate before the term ends.
Variable interest rate
A variable interest rate is one that can go up and down during the life of the loan.
Here are some of the pros and cons of a variable rate:
Pros
- If your variable interest rate goes down, more of your repayment will go towards reducing your loan balance (principal).
- Ability to pay off your loan faster without incurring interest rate break costs.
Cons
- If your variable interest rate goes up, your loan repayments may rise to cover the higher interest and ensure the principal amount is repaid within the term of the loan (which cannot be extended).
- Because the rate can change, your cash flow is harder to predict over the long term.
Queensland State Housing Loan rate discounted and capped
The Queensland State Housing Loan’s variable interest rate is discounted by 1% and capped for the first 5 years of the loan.
It means that, while the rate can vary, it will never go above the set maximum during those years.
The cap provides you with a safety net against interest rate increases when your loan balance is at its highest.
Our current interest rates
To find out what our current rates are, call us on 1300 654 322 or email us.
Regardless of the interest rate, if you have a Queensland State Housing Loan or a Pathways Shared Equity Loan your repayments will never exceed 35% of your before-tax monthly income.
Changing your type of interest rate
If you’re a Queensland Housing Finance Loan or Pathways Shared Equity Loan customer, at any time you can change your type of interest rate from:
- fixed to variable
- fixed to fixed (different fixed rate)
- variable to fixed.
If you change from a fixed to a variable or a different fixed rate before the 3-year fixed term expires, you may be charged a fee.
More information
- Phone: 1300 654 322 (Monday–Friday, 8.30am–4.30pm)
- Email: hscsloaninformation@housing.qld.gov.au
- Post:
Loans and Debt Management
Department of Housing and Public Works
GPO Box 690
BRISBANE QLD 4001