Low-deposit home loan (Queensland Housing Finance Loan)
On this page
If you can afford to repay a home loan but are struggling to save the deposit, you may be able to get a low-deposit home loan from us.
The loan can be used to buy an established house, unit, townhouse or duplex; or to build a house.
The loan helps Queenslanders who:
- have a stable, ongoing income
- can reliably afford home loan repayments and other home ownership costs
- can pay the initial purchase costs and at least a 2% deposit.
Expanded eligibility trial for regional Queensland
The Queensland Housing Finance Loan Regional Trial helps more regional Queenslanders with buying a home.
If you live in an eligible regional area, there is a higher income eligibility limit, so more people can qualify for the loan.
The regional trial is available until 30 June 2026.
Eligibility is based on your local government area (your local council). If you don’t know your local government area, search for your town or suburb on the Electoral Commission of Queensland website.
Map of eligible local government areas (PDF, 616.6 KB)
List of eligible local government areas:
- Balonne
- Banana
- Barcaldine
- Barcoo
- Blackall-Tambo
- Boulia
- Bulloo
- Burke
- Burdekin
- Carpentaria
- Cassowary Coast
- Central Highlands
- Charters Towers
- Cloncurry
- Cook
- Croydon
- Diamantina
- Douglas
- Etheridge
- Flinders
- Gladstone
- Goondiwindi
- Gympie
- Hinchinbrook
- Isaac
- Livingstone
- Lockyer Valley
- Longreach
- McKinlay
- Maranoa
- Mareeba
- Mount Isa
- Murweh
- North Burnett
- Paroo
- Quilpie
- Richmond
- Scenic Rim
- Somerset
- South Burnett
- Southern Downs
- Tablelands
- Western Downs
- Whitsunday
- Winton
If you live in an eligible regional area, the maximum annual income is $201,000 (other eligibility criteria also apply).
Outside of eligible regional areas, the maximum annual income is $141,000.
Check your eligibility
Use our online eligibility checker to see if you’re eligible for the loan.
Who is an applicant
A single person or multiple people, such as a couple, family or friends, can apply for the loan.
When checking eligibility:
- If you are married or partnered, both partners must be applicants.
- Anyone who would be an owner or part-owner of the home must be an applicant.
- All applicants must meet all eligibility criteria.
Eligibility criteria
To be eligible for this loan you must:
- be 18 years of age or older
- live in Queensland and be a citizen or permanent resident of Australia
- intend to live in the home
- have been employed for 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 household income of up to $141,000 or—if you live and plan to buy or build a home in an eligible regional area—up to $201,000
- 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.
How much you can borrow
There is no maximum loan amount. The amount you can borrow depends on how much you can afford in repayments.
We'll calculate how much you can borrow based on your unique situation, including:
- your income
- your expenses
- the upfront costs you'll need to pay
- the ongoing home ownership costs (such as rates and insurance) you'll need to pay.
Even if you’re eligible for the loan, the amount you can borrow might not be enough for the type of home you want.
Example 1
Agatha is a 28-year-old school teacher, earning $125,000 per year before tax. She lives with two friends, sharing the cost of rent, bills and food. She sticks to a budget and saves as much of her income as she can.
Agatha wants to buy a 2-bedroom unit in the suburbs close to her work, which would cost about $500,000.
Because Agatha keeps her expenses low and her savings are high, she could easily afford home loan repayments. She is eligible to borrow the full cost of a home—$500,000.
Example 2
Bernie is a 43-year old project manager, earning $140,000 per year before tax. With 3 growing kids, he also has many expenses—after-school care, swimming lessons, glasses, braces... it never ends!
Bernie wants to buy a 4-bedroom house close to the kids' schools. In his town, that would cost at least $600,000.
Although Bernie earns a good income, he can't afford a large home loan repayment on top of all his other expenses.
Bernie is eligible for the loan, but he's only eligible to borrow $550,000. It's not quite enough for the type of home he wants. If he could reduce some expenses and consider more affordable houses, he might be able to make it work.
Loan term
The loan term is how many years you'll have to repay the loan.
If you’re under 45 years old, the loan term can be up to 30 years.
If you’re 45 or older, the loan term can only be until you're 75. For example, if you’re 55, the maximum loan term is 20 years.
A shorter loan term might reduce how much you can borrow or increase your repayments.
We'll also consider your retirement plans and whether you can afford to make loan repayments after you retire.
Carlos is 55. The maximum loan term for Carlos—until he's 75—is 20 years.
Carlos earns a good income now, but his income will reduce when he retires at 65.
Carlos could get a 10-year loan that he could pay off before he retires. He could also get a 20-year loan which takes into account the repayments he could afford after retiring.
Carlos wants a house outside town with a big yard for his dogs and spare bedrooms for the grandkids. This would cost $550,000 in his region.
Because he has less time to pay off the loan and a reduced income after retiring, Carlos is only eligible to borrow $300,000. That won't be enough for the type of home Carlos wants.
Deposit amount
The deposit you’ll need depends on:
- the amount you can borrow
- the purchase price of the home.
If the amount you can borrow will cover the full purchase price, you only need to provide a 2% deposit.
If the loan amount can only cover part of the purchase price, your deposit will need to make up the difference.
For example, if your loan amount is 90% of the purchase price, your deposit will need to cover the remaining 10%.
Example 1—a 2% deposit needed
Agatha wants a 2-bedroom unit in the suburbs which costs $500,000. Based on her situation, Agatha is eligible to borrow the full $500,000 purchase price.
Agatha’s deposit only needs to be 2% of the purchase price, which is $10,000.
Example 2—a higher deposit needed
Bernie wants a 4-bedroom home. In his town, that would cost $600,000. Based on his situation, Bernie can borrow a maximum of $550,000.
Bernie needs a deposit of $50,000 to cover the difference between what he can borrow and what the home costs. This would be an 8% deposit.
Example 3—deposit amount too high
Carlos wants a 3-bedroom house outside town. In his region, that would cost $550,000.
Because Carlos plans to retire in 10 years, he's only eligible to borrow $300,000. He would need a $250,000 deposit to cover the difference between what he can borrow and what the home costs. This is out of reach for Carlos.
Other costs of buying a home
When buying or building a home, you’ll also need to pay for:
- building inspection
- legal costs (conveyancing)
- transfer and mortgage registration fees
- transfer duty (stamp duty).
These costs vary depending on the purchase price of your home, location, and other factors.
Initial costs will be at least $5,000 for first home buyers, and at least $10,000 otherwise.
You won’t need to pay lenders mortgage insurance when you get this loan.
When you move in to your home, you’ll also need enough for:
- home insurance
- moving costs
- connecting electricity, water, internet and other utilities.
Ongoing costs of owning a home
As well as the initial costs of buying a home, you’ll need to pay for ongoing home ownership costs, including:
- home insurance
- council rates and utility charges
- repairs and maintenance.
In Queensland, average home ownership costs are $830 per month.
Loan details and options
| Loan amount | Up to the maximum amount you can afford to borrow, as calculated by us. |
|---|---|
| Loan term | Maximum term is 30 years or until age of 75. |
| Repayment type | Principal and interest |
| Interest rate type | Variable or 3-year fixed |
| Loan security | We take a registered mortgage over your home. |
| Application fee | $817.56. This fee increases on July 1 each year, in line with the consumer price index (CPI). |
|---|---|
| Minimum deposit | 2% of the property’s purchase price or the difference between the maximum loan you’re eligible for and the property's purchase price (whichever is higher). |
| Interest rates (p.a.) | For our current rates, call 1300 654 322 or email hscsloaninformation@hpw.qld.gov.au. |
| Repayment amount | Your repayments will be up to 35% of your gross (before tax) monthly household income at the start of the loan. However, they may increase if the interest rate goes up. |
| Account keeping fees | $0 |
| Direct debit dishonour fee | $19.58 |
| Fixed rate change fee | If you have a fixed rate and reset it before the end of the 3-year period, you may have to pay the equivalent of up to 3 months of interest. |
| 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—if your loan application is approved. |
| Offset account | No |
| Redraw facility | No |
| Increase loan | No—but you have the option to refinance your home loan. |
| Line of credit | No |
How to apply
1. Do a quick eligibility check
Start by doing a quick eligibility check online.
This can tell you if you're not eligible or if you could be eligible.
2. Call to confirm your eligibility and find out how much you can borrow
Confirm your eligibility over the phone by calling 1300 654 322 (Monday–Friday, 8.30am–4.30pm).
You can also request a call by emailing hscsloaninformation@hpw.qld.gov.au. Give us at least 3 suitable times to call you (Monday–Friday, 8.30am–4.30pm).
It takes 15–20 minutes to confirm your eligibility. We’ll talk about each applicant’s income, savings and debts in detail. Have this information ready when you call.
If you’re eligible, we’ll also tell you:
- how much you can borrow
- how much you’ll need for a deposit.
3. Submit your application
We'll explain the application process in full over the phone.
If you want to proceed, we’ll send the loan application forms by email or post. You'll have 3 months to submit your application.
Submit your application when you're ready to make an offer on a home. You can submit your application by email or post.
Managing your home loan
Already have a Queensland Housing Finance Loan? Find out about:
More information
If you have questions about the loan or your eligibility, contact us:
- Phone: 1300 654 322 (Monday–Friday, 8.30am–4.30pm)
- Email: hscsloaninformation@hpw.qld.gov.au
- Post:
Debt and Property Services
Department of Housing and Public Works
GPO Box 690
BRISBANE QLD 4001