First Home Guarantee Brisbane 2026: How the 5% Deposit Scheme Works

How the First Home Guarantee Helps Brisbane Buyers Get In With Just 5% Down

Saving a 20% deposit in Brisbane can take years. The First Home Guarantee Brisbane buyers can now access changes that completely – it lets eligible first home buyers purchase with just a 5% deposit and pay no Lenders Mortgage Insurance, potentially saving tens of thousands of dollars.

Quick Summary

The First Home Guarantee lets eligible Brisbane buyers purchase with a 5% deposit and no LMI, on homes up to $1,000,000, with no income caps.

Since a major expansion in late 2025, the scheme has no income caps and no limit on places, and it now covers homes up to $1,000,000 in Brisbane. This guide explains how it works, who qualifies, and how to apply through the right lender.

A Loan For You helps Brisbane first home buyers check their eligibility and secure a First Home Guarantee place with a participating lender - at no cost to you. Book a free first home buyer assessment.

Key Highlights

The First Home Guarantee lets eligible buyers purchase with a 5% deposit and no Lenders Mortgage Insurance, with the government guaranteeing the gap to 20%.
Since 1 October 2025, the scheme has no income caps and no cap on the number of places available each year.
In Brisbane, the Gold Coast and the Sunshine Coast, you can buy a home worth up to $1,000,000 under the scheme.
Across the rest of Queensland, the price cap is $700,000.
Both new and established homes qualify, so you are not limited to house-and-land packages.
Avoiding LMI on a $700,000 purchase can save roughly $20,000 to $28,000 upfront.
You apply through an approved panel lender, not directly with Housing Australia.
The scheme can be combined with the $30,000 First Home Owner Grant and the QLD stamp duty exemption on new homes.

Quick Summary

In 2026, the First Home Guarantee Brisbane buyers can use lets you buy with a 5% deposit and no LMI, on homes up to $1,000,000. With no income caps and unlimited places, it is the fastest way for most Brisbane first home buyers to get into the market.

The First Home Guarantee has quietly become the most powerful tool for Brisbane first home buyers. A 5% deposit with no LMI can bring a purchase forward by two or three years.
Philip Jenkins, A Loan For You

First Home Guarantee Brisbane at a Glance

Feature	Detail
Deposit required	As little as 5%
LMI	None (government guaranteed)
Brisbane price cap	$1,000,000
Rest of QLD price cap	$700,000
Income caps	None (removed October 2025)
Places available	Unlimited
Eligible homes	New and established
How to apply	Through an approved panel lender

How the First Home Guarantee Brisbane Scheme Works

Normally, buying with less than a 20% deposit means paying Lenders Mortgage Insurance, which protects the lender if you default. Under the First Home Guarantee, the government guarantees up to 15% of the property value, so the lender treats your 5% deposit like a 20% one.

That means no LMI premium, and often access to sharper rates than other low deposit home loan Brisbane options. You still borrow the remaining amount and repay it as a normal home loan.

The guarantee itself costs nothing. It is not a loan or a cash payment, simply a government promise to the lender that lets them approve your loan without insurance. It quietly sits behind your mortgage and falls away as you build equity.

You provide a deposit of at least 5% of the purchase price.
The government guarantees the gap between your deposit and 20%.
You pay no Lenders Mortgage Insurance, saving thousands upfront.
You borrow the rest as a standard home loan and repay it normally.

First Home Guarantee Brisbane Eligibility: Who Qualifies

The eligibility rules were relaxed significantly in late 2025, so more Brisbane buyers now qualify than before. The changes opened the scheme to permanent residents and removed the income tests that previously ruled out many dual-income households.

Eligibility Criteria

You are an Australian citizen or permanent resident, aged 18 or over.
You are a first home buyer, or have not owned property in Australia in the past 10 years.
You will live in the home as your main residence, not as an investment.
The property value is within the Brisbane or Queensland price cap.
You have a deposit of at least 5% (some lenders may ask for more).

There are no income caps, so higher earners are no longer shut out of the first home guarantee scheme.

First Home Guarantee Brisbane Price Caps

You can only use the scheme on a home priced within the cap for its location. The caps rose in the 2025 expansion to reflect Brisbane’s market.

Location	Price cap
Brisbane	$1,000,000
Gold Coast	$1,000,000
Sunshine Coast	$1,000,000
Rest of Queensland	$700,000

So a couple buying a $900,000 townhouse in Brisbane is well within the cap, while the same home in a regional town would exceed the $700,000 regional limit. The cap is based on the property value, not the loan, so check listings carefully before you fall in love with a home just over the line.

Deposit and LMI Savings You Can Expect

The biggest saving is avoiding LMI. On a low deposit purchase, LMI can add tens of thousands to your costs. Here is what a 5% deposit home loan Brisbane buyer could save at different price points.

Purchase price	5% deposit	Approx LMI avoided
$500,000	$25,000	~$12,000
$700,000	$35,000	~$22,000
$900,000	$45,000	~$30,000
$1,000,000	$50,000	~$35,000

Use our deposit calculator to see the exact deposit and savings for your target price. A no LMI home loan Brisbane buyers secure this way can save years of extra saving.

New vs Established Homes Under the Scheme

The First Home Guarantee Brisbane covers both new and established homes. You are not forced into a house-and-land package, which gives you far more choice across the city.

New homes: may also qualify for the $30,000 First Home Owner Grant and zero stamp duty.
Established homes: qualify for the guarantee and stamp duty concessions, but not the new-home grant.
Either way, a 5% deposit home loan Brisbane buyers use avoids LMI.

First Home Guarantee vs Family and Regional Guarantees

The First Home Guarantee sits alongside two related schemes. Knowing the difference helps you pick the right one.

First Home Guarantee: 5% deposit, no LMI, for eligible first home buyers.
Regional First Home Buyer Guarantee: same 5% terms, for homes outside Brisbane, the Gold Coast and the Sunshine Coast, capped at $700,000.
Family Home Guarantee: just a 2% deposit and no LMI, for eligible single parents or guardians.

Combining the Guarantee With Other Schemes

On a new home, the guarantee is only part of the picture. You can also claim the $30,000 First Home Owner Grant and pay no stamp duty, all at the same time.

Picture a $700,000 new build. With a 5% deposit of $35,000, you avoid about $22,000 in LMI, pay zero stamp duty, and receive $30,000 at settlement. That is more than $70,000 in combined benefit.

The guarantee removes LMI on your 5% deposit.
The First Home Owner Grant pays $30,000 cash at settlement on a new home.
The stamp duty exemption means nil transfer duty on a new home in Queensland.

The grant is paid at settlement, so you still need your 5% deposit ready at contract. A broker can help you sequence the funds correctly.

What a 5% Deposit Means for Your Repayments

Buying with a smaller deposit means a larger loan, so your repayments are higher than with 20% down. The trade-off is getting into the market years sooner, before prices rise further.

On a $700,000 home, a 5% deposit leaves a $665,000 loan, versus $560,000 with 20% down. Your broker can model both so you buy within a comfortable budget and avoid stretching yourself.

A no LMI home loan Brisbane buyers access through the scheme keeps those upfront costs down, even though the loan itself is larger.

Compare scenarios with our deposit calculator before you commit, so your repayments stay manageable from day one.

Documents You Will Need to Apply

Getting your paperwork ready speeds up both your loan and your scheme place. Most lenders ask for the same core documents, so gathering them early avoids delays.

Proof of identity, such as a passport or driver licence.
Recent payslips and, if self-employed, tax returns and financial statements.
Bank statements showing your genuine savings and living expenses.
Details of any debts, including credit cards, car loans and HECS.

Is the Scheme Right for You?

The scheme suits buyers who can comfortably afford repayments but have not saved a full 20% deposit. It is less useful if you already have a large deposit or want an investment property.

Because there are no income caps, even higher earners can use it to avoid LMI and keep their savings for renovations, furniture or a rainy-day buffer after settlement.

Great fit: strong income, a small deposit, buying a home to live in.
Less ideal: buying purely as an investment, which the scheme excludes.
Worth advice: if your deposit is near 20%, compare both options first.

First Home Guarantee vs Saving a 20% Deposit

Some buyers wonder whether to keep saving for a 20% deposit instead. In most cases, using the First Home Guarantee Brisbane buyers can access now makes far more sense than waiting.

Saving another 15% of a $700,000 home is roughly $105,000. At today’s prices, that can take three to five years – years of rising prices and rent you could avoid by buying sooner with 5% down.

Buy sooner: you enter the market years earlier with just a 5% deposit.
Save on LMI: you avoid a premium that can reach $20,000 to $35,000.
Beat price growth: you stop chasing a deposit target that keeps rising.

For most first home buyers, a low deposit home loan Brisbane lenders back through the scheme beats waiting years to save a full 20% deposit.

How to Apply for the First Home Guarantee Brisbane

You cannot apply directly with Housing Australia. Places are offered through a panel of approved lenders, so the process runs alongside your home loan application.

Speak to a broker or lender to confirm your eligibility and a scheme place.
Get pre-approval so you can shop with confidence within the price cap.
Find a home, sign the contract, and proceed to a full loan application.
Your lender reserves the guarantee place and you settle with a 5% deposit.

Common Mistakes to Avoid

A few simple mistakes can cost you a First Home Guarantee Brisbane place, or push you over a cap. Watch for these before you start.

Assuming income caps still apply - they were removed in October 2025.
Choosing a home above the $1,000,000 Brisbane cap, which disqualifies it.
Leaving your application late, as some lenders manage their own place allocations.
Forgetting you can still stack the FHOG and stamp duty exemption on a new home.

Frequently Asked Questions

How does the First Home Guarantee work in Brisbane?

The First Home Guarantee lets eligible Brisbane buyers purchase with a 5% deposit and no LMI. The government guarantees up to 15% of the value, so the lender treats your loan like an 80% deposit loan. You apply through an approved panel lender and settle with your 5% deposit.

Can I buy in Brisbane with a 5% deposit and no LMI?

Yes. Under the First Home Guarantee, eligible first home buyers can purchase a home up to $1,000,000 in Brisbane with just a 5% deposit and pay no Lenders Mortgage Insurance. On a typical purchase that saves roughly $20,000 to $35,000 upfront, money you can keep as a buffer or put toward moving costs.

Who is eligible for the First Home Guarantee scheme?

You need to be an Australian citizen or permanent resident, aged 18 or over, a first home buyer or someone who has not owned property in the past 10 years, and buying a home to live in within the price cap with at least a 5% deposit. There are no income limits at all.

How do I apply for the First Home Guarantee in Brisbane?

You apply through an approved panel lender, not directly with Housing Australia. A broker can confirm your eligibility, reserve a place and manage the loan application from start to finish. Getting pre-approval first lets you buy with confidence, since you know your budget and that your scheme place is secured before you make an offer.

What is the First Home Guarantee Brisbane price cap?

The First Home Guarantee Brisbane price cap is $1,000,000, which also applies on the Gold Coast and Sunshine Coast. Across the rest of Queensland it is $700,000. The home must sit within the cap for its location to qualify.

Are there income limits on the First Home Guarantee?

No. Income caps were removed on 1 October 2025, so there are no longer any income limits at all. The number of places is also unlimited now, so you do not need to rush to beat an annual cap the way buyers did in earlier years.

Can I use the First Home Guarantee on an established home?

Yes. Both new and established homes qualify, which gives you far more choice across Brisbane. On a new home you can also claim the $30,000 First Home Owner Grant and the stamp duty exemption; established homes qualify for stamp duty concessions instead, but not the new-home cash grant.

Do I need genuine savings for the First Home Guarantee?

Often, yes. Many lenders still want to see part of your 5% deposit genuinely saved over three months or more, though rules vary between lenders. A broker can match you to a lender whose genuine savings requirements suit your situation, including gifted deposits in some cases.

Talk to a Brisbane First Home Buyer Specialist

Securing a First Home Guarantee Brisbane place can bring your first home forward by years, but places run through lenders and the rules keep changing. A Loan For You confirms your eligibility and secures your place with the right lender.

Free, no-obligation eligibility check with no impact on your credit file.
Access to 50+ lenders, including First Home Guarantee panel participants.
Local Brisbane brokers serving Chermside, Redcliffe, North Lakes and beyond.

Book a Free Assessment

Reviewed and Verified

This guide was reviewed by Philip Jenkins, principal broker at A Loan For You (Credit Representative 365865). With almost 20 years placing Brisbane buyers with the right lenders, Philip keeps every figure aligned with current scheme rules and lender policy.

General information only, correct as at July 2026. Scheme rules and caps change - confirm current eligibility with your broker and Housing Australia, and check grant details with the Queensland Government before you act.