First home buyers
First home buyer schemes

What is the Queensland First Home Owner Grant?

The First Home Owner Grant (FHOG) is changing for Queenslanders
Ava Crawford
Written by
Ava Crawford
Imogen Baxter
Reviewed by
Imogen Baxter
Last updated
May 17, 2024
0 minute read
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kids on a swing in a home in queensland purchased with the first home owner grant

First home buyers in Queensland will be faced with changes to the First Home Owner Grant (FHOG) between 24 November 2023 and 30 June 2025. If you have been contemplating your eligibility for this assistance from the Queensland government and how this can assist you in buying a new home, let’s break things down.

What is the Australian First Home Owner Grant?

The First Home Owner Grant, or FHOG (also called the First Home Buyers Grant), is one of several forms of government assistance for first-time home buyers in Australia. The way it operates is determined by the state government, which is why the Queensland first homeowners grant differs from other state government grants.

Speaking generally, the First Home Owners Grant is a one-off payment given to first home buyers who meet the set of eligibility requirements. You do not need to make repayments on it, and will not factor into your tax return.

This can help first-time home buyers enter the property market, where homeownership was previously seen as unachievable for many due to the size of a deposit needed to buy your own home.

This first home concession can help first-home buyers avoid high loan-to-value (LVR) tier home loans with high-interest rates attached or help them to avoid lenders mortgage insurance (LMI) — a fee incurred for borrowers when their deposit is below 20% of the property value.

Other government support available for first-home buyers includes the First Home Loan Deposit Scheme (FHLD) and the First Home Buyers Guarantee Scheme (FHBG). Some states may also offer stamp duty concessions or exemptions to first-home buyers.

The new option: OwnHome's Deposit Boost Loan

An OwnHome Deposit Boost Loan provides the opportunity for customers to get a foot on the property ladder without hundreds of thousands of dollars upfront.

Unlike the government’s Help to Buy scheme, OwnHome does not own any of your property equity. There is also no cap on income, and you can take out a Deposit Boost Loan for a home up to $3 million.

Backed by some of Australia’s most trusted financial institutions, OwnHome is working alongside the big players to help you get ahead in the game.

What is it?

With an OwnHome Deposit Boost Loan, all you need is 2% upfront, and we’ll cover the rest of your 20% deposit - so you don’t pay Lenders Mortgage Insurance (LMI)! Plus, once you're ready to start the house-hunt, you'll be supported by our team of expert Buyer's Agents - at no additional cost!

Here's how it works:

  1. Bridge your deposit gap - For just 2.2% upfront, we’ll cover the deposit you need to unlock your very own 80% LVR mortgage. If you bring a deposit, the Low Deposit Premium gets cheaper.
  2. Hello, pre-approval - There are no restrictions on which lenders you can pair with your OwnHome deposit.
  3. Find your dream home - Our qualified team of home-buying experts will help you every step of the way—from search to settlement.
  4. Low monthly repayments - You repay your OwnHome Deposit Boost Loan over time, just like you would with your mortgage. Think of it as paying for your deposit while you live in your home. Plus, there are no penalties for paying off your loan early.

Who is eligible?

OwnHome exists to help aspiring homeowners who need a boost to their deposit. Key requirements for a Deposit Boost Loan are:

  • Credit in good standing
  • Proof of employment
  • Permanent residency or citizenship for at least one applicant
  • Looking to buy an owner-occupier property
  • Savings to cover 2.2% Low Deposit Premium and government fees and conveyancing
Can you afford mortgage repayments but not the deposit? Learn more about a deposit boost loan.
Check your eligibility
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What is the Queensland First Home Owners Grant?

Each territory and state government have their own process and restrictions on the First Home Owners Grant. The Queensland government provide $30,000 as a one-off payment for their First Home Owner Grant on real estate valued at less than $750,000.

In Queensland, you are able to buy a brand new home off a land package (with the FHOG acting as a homebuilder grant), but you may also be eligible for the First Home Owners Grant if you buy an established home with substantial renovations.

Substantial renovations could include significant alterations to the layout and design of the home, altering the flooring, or replacing the foundations. Cosmetic renovations, like new paint or floor sanding, will not count as substantial renovations and will not render you eligible for the FHOG.

Since there is a cap on the purchase price of your new home to meet the eligibility requirements of the FHOG, it may be easier to find appropriate homes or land packages outside of metropolitan hubs like Brisbane.

You have some freedom in your property search, with the ability to buy a new house or a substantially renovated home, an apartment, townhouse or duplex, or vacant land with direct plans to build.

What are the changes to the Queensland First Home Owners Grant?

Prior to 20 November 2023, the FHOG in Queensland offered first-time home buyers $15,000 on their new property purchase. As of 20 November 2023, this has doubled to $30,000 and will remain in effect until 30 June 2025.

The current First Home Owners Grant is triple the $10,000 amount accessible to first home buyers in NSW and Victoria.

This is in order to provide support for the changing financial situations of many Australians in light of the cost of living crisis and the increasing purchase prices of residential property around the country. This has left many Australians, particularly young Aussies, with a significant barrier to home ownership.

Grant applications for the increased amount are expected to be able to begin from January 2024, with applicants able to apply for property purchased within the eligible date range.

What are the eligibility criteria for the First Home Owners Grant QLD?

To meet the eligibility requirements of the Queensland First Home Owners Grant, you must meet the following requirements:

  • Be an Australian citizen or permanent resident (or apply with someone who is an Australian citizen or permanent resident).
  • Be at least 18 years of age.
  • You (or your partner in the application) must not have been the prior recipient of a First Home Owner Grant in Australia.
  • You must not have previously owned property in Australia that was your principal place of residence.
  • You must intend to have the new home as your principal place of residence for a minimum of 6 months within a year of becoming the owner.

Note that you may still be eligible for the Queensland First Home Owners Grant if you have owned an investment property in the past, as long as you didn’t live in it.

The new home:

  • Must be valued at less than $750,000 in total (including the land).
  • Must be a new home, off-the-plan purchase, substantial renovation, contract to build, or owner-builder transaction.
  • Must not have been used before as a place of residence. In the case of a property with substantial renovations, this refers to having been not used as a home since the renovations.
  • Could be a house, unit, townhouse, duplex, granny flat, kit or modular home, home in a manufactured home park, or substantially renovated home.

A mortgage broker should be able to direct you towards any other government grants and appropriate support you may be eligible for.

FAQs

Do first-home buyers in Queensland receive a stamp duty exemption?

As of June 2024, first home buyers in Queensland are exempt from Stamp Duty for homes below $700,000. There are concessions for homes valued at between $700,000 and $800,000.

When buying vacant land, you will not pay stamp duty if the purchase price is $350,000 or lower. Beyond that, stamp duty concessions are available for vacant land valued up to $500,000 in QLD.

Foreign Occupier Duty in Queensland is now 8% of the value of the home (rising from 7%).

What supporting documents do I need for my First Home Owners Grant application?

The supporting documents that you need to complete your FHOG application will depend on what type of new property you are purchasing. This means that if you are buying a:

  • New home — You will need to provide a contract, signed and dated by the seller; A Registration Confirmation Statement or current title search confirming that this property is now registered as your own home; A final inspection certificate issued by your local council or private building certifier.
  • Substantially renovated home — You will need to provide a contract, signed and dated by the seller; A Registration Confirmation Statement or current title search confirming that this property is now registered as your own home; A final inspection certificate issued by your local council or private building certifier.

    You will also need a tax invoice showing the GST paid and a statement from the seller confirming that the property has not been sold or occupied as a place of residence along with the type and extent of the renovations, and that the sale of the home was a taxable supply under the GST act.
  • Contract to build — You will need to provide a contract, signed and dated by the builder and the applicants; A Registration Confirmation Statement or current title search confirming that this property is now registered as yours; A final inspection certificate issued by your local council or private building certifier.

    You will also need, dated no more than 12 months from the date of contract to build, either a stamped contract to purchase vacant land, an independent market appraisal or valuation of the land, or a stamped Titles Queensland Form 1 Transfer.
  • Owner-builder — A Registration Confirmation Statement or current title search confirming that this property is now registered as yours; A first inspection that show’s the build’s start date and a final inspection certificate on completion, issued by your local council or private building certifier; A completed owner-builder cost summary report; Copies of receipts equal to the grant amount.

    You will also need an independent third party or market appraisal of the home after the build is completed. As well as this, you’ll need either a stamped contract to purchase vacant land, an independent market appraisal or valuation of the land, or a stamped Titles Queensland Form 1 Transfer (dated no more than 12 months from the date of the start of the build).

Other supporting document requirements exist for first home buyers in other more complicated conditions, which may require contracting the Queensland state Revenue Office for more information.

Can I use the First Home Owners Grant as home loan deposit?

While it may be tempting to apply for the $30,000 to use towards a down payment on a brand new home, the First Home Owners Grant is paid at different times and has different requirements based on whether you are buying an established home, a new home or building on vacant land. Using it as a deposit is generally not advisable.

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Disclaimer
This article is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation, or needs. In particular, you should seek independent financial advice and read the relevant product disclosure statement (PDS), or other offer documents before making an investment decision in relation to a financial product (including a decision about whether to acquire or continue to hold).
Prepared by OwnHome Services Pty Ltd ACN 664 492 059. This information does not take your personal objectives, circumstances or needs into account. Always read the disclosure documents for products and services before deciding on a product or service, and consider seeking independent legal, financial, taxation or other advice for your unique circumstances.
References

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