Queensland housing finance loan
The Queensland Housing Finance Loan may be available for Queenslanders who can afford to buy or build a home but cannot get private finance from a bank or building society. This loan can be used to buy an established house, unit, town-house or duplex, or to build a house.
Eligibility
To be eligible for the loan you must:
- live in Queensland and be a citizen or permanent resident of Australia
- not own or part-own another property
- have a household income under $141,000 per annum
- intend to live in the home
- have a good credit history
- have no significant debts
- have a regular savings history
- have savings to cover the deposit and other costs, such as legal fees, stamp duty and insurance
- be able to afford the loan repayments without hardship
- have earning potential for the term of the loan.
Applying for the loan
Contact our loan hotline to apply or receive more information;
- Email: loaninformation@chde.qld.gov.au
- Phone: 1300 654 322 Monday to Friday, 8.30am to 5.00pm
- Post:
Loans and Debt Management
Department of Communities, Housing and Digital Economy
GPO Box 690
BRISBANE QLD 4001
What does the loan offer?
The loan offers:
- variable or fixed interest rate
- a minimum deposit of 2% of the purchase price, or the difference between the maximum loan you are eligible for and the purchase price of the property
- no mortgage insurance fees
- no monthly account-keeping fees
What will the loan cost?
There are upfront costs involved in buying or building a home with the loan, including:
- a minimum deposit of 2% of the purchase price of your home, or the difference between the maximum loan you are eligible for and the purchase price of the property.
- Example 1: You are eligible to borrow a maximum of $200,000 but the purchase price of the property is $250,000, you will need a deposit of $50,000 which is 20% of the purchase price.
- Example 2: You are eligible to borrow the full amount of $250,000 to purchase the property. You will need a deposit of $5,000 which is 2% of the purchase price.
- application fees
- you will need to get independent financial advice and you will be reimbursed up to $100 if your loan is approved
- mortgage registration fees.
How much can I borrow?
This amount is based on:
- your gross and disposable income
- the term of the loan
- current interest rates
- the price of the home you want to build or buy.
An estimate of the maximum loan you may be eligible for can be provided over the phone.
How much will I repay?
You will have to repay the loan amount as well as interest and any fees and charges. The amount of your monthly repayments will depend on:
- your loan amount
- your income
- current interest rates
- the term of your loan
Your initial monthly repayments will start at 30% but will not be more than 35% of your agreed continued income. You must insure your home for the full term of the loan.
What other costs will I have?
You will also need to pay legal fees, stamp duty and registration fees. These fees vary depending on the purchase price of your home, location and other factors. See your solicitor to get an estimate of these costs based on your personal circumstances.
The First Home Owners' Grant
If you are buying or building a new home, you could be eligible for the Queensland First Home Owners' Grant. The Queensland First Home Owners’ Grant is a Queensland Government initiative to help first home owners to get their new first home sooner.