Loan to buy your public housing home (Queensland State Housing Loan)
If you live in public housing, you may be able to get a government loan to buy your home.
For you to qualify for a Queensland State Housing Loan:
- we must be willing to sell the home you’re renting (not all government properties are for sale)
- you must intend to continue living in your home (as an owner–occupier).
Other eligibility criteria apply.
If you’re approved for a loan, your interest rate will be discounted and capped for the first 5 years of the loan.
This will protect you from interest rate rises when your mortgage balance is at its highest.
Who can apply
To be eligible for this loan, the applicant/s must:
- be 18 years of age or older
- be a citizen or permanent resident of Australia
- be an existing public housing tenant
- be living in the property you want to buy
- have been employed the past 1+ year (permanent), 2+ years (casual), or 3+ years (self-employed)
- not own or part-own another property
- have a maximum gross (before tax) annual income of up to $141,000
- have enough savings to cover the loan deposit and other homebuying costs
- be able to repay the loan without hardship, including having:
- a regular savings history
- a good credit history
- no significant debts
- earning potential for the term of the loan.
If you’re not eligible
If you’re not eligible for the loan because you cannot afford to buy your whole home, you may qualify for a Pathways Shared Equity Loan to buy a share of your home.
Loan at a glance
Basics
| Loan amount | Up to your maximum borrowing capacity, as calculated by us. |
| Loan term | Depends on circumstances (e.g. the age you intend to retire); maximum term is 30 years. |
| Repayment type | Principal and interest |
| Interest rate type | Variable (discounted and capped for the first 5 years of the loan). |
| Loan security | We take a registered mortgage over your home. |
Rates and fees
| Application fee | $0 |
| Minimum deposit | $2,000 |
| Interest rates (p.a.) | To find out what our current standard variable rate is, call us on 1300 654 322 or email us. For the first 5 years of the loan, the rate is discounted by 1% and capped. |
| Repayment amount | Your repayments will start at up to 30% of your gross (before tax) monthly income. |
| Account keeping fees | $0 |
| Direct-debit dishonour fee | $19.58 |
Features and benefits
| Repayment frequency | Flexible (e.g. weekly, fortnightly, monthly) |
| Extra repayments allowed | Yes |
| Lender’s mortgage insurance | Not required |
| Hardship assistance | Yes—if you qualify |
| Financial advice rebate | $100—at settlement |
| Offset account | No |
| Redraw facility | No |
| Increase loan | No—but option to refinance with another lender |
| Line of credit | No |
Discounted rate capped for first 5 years
For the first 5 years of your loan, the interest rate is capped at 1% below our standard variable interest rate at the time the loan was approved.
This means your minimum loan repayments will not increase during this time (though you can still choose to pay more).
If our standard variable interest rate drops below the capped rate, the capped rate will be lowered to the new standard variable rate.
After the first 5 years of your loan, the interest rate will be increased by 0.5% each year on the anniversary of the loan.
The interest on your loan will never be more than our standard variable interest rate.
Upfront costs you must pay
When buying your home, you’ll also need to pay these third-party costs:
- building inspection
- conveyancing fees
- transfer and mortgage registration fees
- transfer duty (stamp duty)
- home insurance.
Some of these costs vary depending on the purchase price of your home, location and other factors.
Your solicitor can give you an estimate of these costs based on your circumstances.
Rates adjustment
At settlement, you’ll need to reimburse us for any council rates or water charges we’ve prepaid on your property.
Ongoing costs you must pay
As well as the upfront costs of buying a home, you’ll need to pay ongoing homeownership costs, including:
- home insurance
- council rates and utility charges
- repairs and maintenance.
Call to check your eligibility
To find out whether you’re eligible for a Queensland State Housing Loan, call us on:
1300 654 322 (Monday–Friday, 8.30am–4.30pm)
It takes 15–20 minutes for us to assess your eligibility. You can speed up the process by having information handy about all the applicants’:
- income
- savings
- debts.
What next?
If your property is for sale and we determine you could be eligible for a loan, we’ll send you loan application forms to complete and return to us.
Managing your home loan
Already a Queensland State Housing Loan customer? Find out about:
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