Home loans

Buying a home takes careful planning and budgeting. It is the single biggest purchase most people will make in their lifetime. Choosing a home loan that suits your needs can save you money and reduce the time it takes to pay off your property.

Getting a home loan

A home loan (also known as a mortgage) is a debt you will have for many years. Generally, the maximum term for paying off your mortgage is 30 years.

Varying interest rates and fees can make it hard to compare loans and decide which one is best for you. Check carefully when deciding what sort of loan to take.

Your lender may want you to take out home insurance once you have organised your loan. 

Interest rates

Interest rates can be variable, fixed or partially-fixed. The sort of loan you choose will affect your repayments.

A small difference in an interest rate can make a big difference to your total repayments over time. However, the lowest interest rate is not always the cheapest loan.

Compare rates to see what is best for you.

Your lender must explain the fees and charges of your loan before you sign the contract.

The MoneySmart mortgage calculator can help you work out:

• how much you can afford to borrow
• how much your repayments will be
• your repayments if interest rates change. 

Mortgage brokers

A mortgage broker is someone who specialises in home loans. They can advise you on loan options and negotiate with lenders on your behalf. If you decide to use a broker, make sure they are licensed.

Switching home loans

Switching your home loan (possibly to a different lender) could save you money by reducing the amount of interest you pay. If you are not happy with your loan, you should:

• ask your lender about your options
• shop around and compare interest rates
• check the costs of switching.

Help for first home buyers

Grants and concessions are available for first home buyers to help them save for a deposit and reduce the amount they need to borrow.

Saver accounts

A first home saver account could be a good way to save for your first home because the government contributes to your account. These contributions are a percentage of what you save, up to a limit each year.

See if you are eligible for a first home saver account.

Grants

First home owners can apply for the Great Start Grant.

You could get $15,000 towards the cost of your house, unit or townhouse (valued at less than $750,000) if you:

• are a first home buyer

  and

• have a contract to buy or build a new home dated on or after 12 September 2012.

Check your eligibility for the grant

You may be able to claim the first home owner grant if:

• your contract to buy or build a new home is dated before 12 September 2012

  or

• you bought an established home before 11 October 2012.

Find out if you are eligible for the $7,000 grant.

Transfer duty concessions

When you buy a property you must pay transfer duty (previously known as stamp duty). The amount you pay depends on the value of the property.

Transfer duty concessions may apply if you are buying:

• a home in which you will live (extra concessions may be available if it's your first home)
• vacant land on which your first home is to be built.

Check your eligibility for transfer duty concessions.

Help with loans

Indigenous Home Ownership Program

The Indigenous Home Ownership Program offers concessional housing finance to eligible Aboriginal and Torres Strait Islander individuals and families to help:

• buy an established residential property
• buy land and/or construct a new home
• make essential improvements to an existing home.

Most loans are offered to first home buyers who are able to repay a long-term loan but are finding it hard to get finance from a lender.

Queensland Government loans

You may be eligible for help from the Queensland Government if you:

• cannot get finance but can afford to buy a home
• are having trouble with your home loan repayments.

Read more about other government housing loans and concessions.