A Clearer Way to Buy YOUR FIRST HOME in Townsville

Historically, buyers needed a 20% deposit to avoid Lenders Mortgage Insurance (LMI). However, through the Australian Government's Home Guarantee Scheme (5% Deposit Scheme), eligible first home buyers in Townsville can purchase an eligible property with as little as a 5% genuine savings deposit, with the federal government guaranteeing the remaining 15% so you avoid paying LMI entirely. On a $500,000 home, a 5% deposit equals $25,000.

In Queensland, eligible first-home buyers can access up to $30,000 under the First Home Owner Grant (FHOG). To qualify, the contract must be for a brand new, never-before-occupied home, house-and-land package, or off-the-plan build valued at under $750,000 (including land and build). All applicants must be at least 18, Australian citizens or permanent residents, and have never owned residential property in Australia before. You must also live in the property continuously for at least 6 months starting within 1 year of settlement.

No. The $30,000 Queensland First Home Owner Grant is strictly reserved for brand new homes that have never been previously occupied or sold. However, buyers purchasing an established home can still benefit from significant savings through the Queensland First Home Concession for transfer duty, which eliminates stamp duty entirely on homes valued up to $700,000, saving you up to $24,525 in upfront costs.

Under Queensland's First Home Concession, eligible buyers purchasing an established home to live in pay zero transfer duty on properties valued up to $700,000. This delivers a direct tax saving of up to $24,525 compared to standard transfer duty rates. Concessional rates continue up to $800,000 on a sliding scale. To qualify, you must move in within 1 year of settlement and not dispose of or lease the property before 1 year.

Announced by the Queensland Government, the First Home New Home Concession applies from 1 May 2025 and is designed to further support buyers of newly built properties. Under this initiative, eligible first-home buyers purchasing a brand new home can have their transfer duty reduced to nil, with no upper property value cap under the announced guidelines. This creates a powerful dual benefit when combined with the $30,000 First Home Owner Grant.

Yes. Queensland offers the First Home Vacant Land Concession. If you purchase vacant land valued at up to $350,000 and intend to build your first home on it, you pay zero transfer duty (saving up to $7,175). A partial concession applies on land valued between $350,000 and $500,000. You must build your home and move in within 2 years of settlement to retain the concession.

Both the Queensland Revenue Office (for transfer duty concessions and the FHOG) and Housing Australia enforce strict 12-month occupancy rules. If you rent out the whole property or even a spare bedroom within the first 12 months, or move out before satisfying the 6-month continuous occupancy test, you must notify the QRO within 14 days. This triggers an automatic reassessment and you may be required to repay the grant and clawed-back duty.

The Home Guarantee Scheme is administered by Housing Australia. It allows eligible first-home buyers to purchase a home with as little as a 5% deposit without paying Lenders Mortgage Insurance (LMI). The government provides a guarantee to participating lenders for up to 15% of the property's value. It is not a cash grant that you receive; rather, it saves you thousands in LMI fees that banks usually charge on low-deposit loans.

Yes, eligible buyers can combine multiple assistance programs. For instance, a qualified first home buyer purchasing a new $520,000 home in Townsville could potentially access: (1) The $30,000 QLD First Home Owner Grant, (2) The Federal 5% Deposit Scheme (avoiding thousands in LMI), (3) Full Queensland Transfer Duty Concession (saving up to $15,000+ in stamp duty), and (4) The First Home Super Saver Scheme to draw down tax-sheltered deposit savings. Program rules and eligibility criteria must all be individually satisfied.

The FHSS scheme lets you make voluntary before-tax (concessional) and after-tax (non-concessional) contributions to your existing superannuation fund to save for your first home deposit. You can withdraw up to $15,000 in eligible voluntary contributions per financial year, up to a maximum total of $50,000 per individual (or $100,000 for a couple). Because super contributions are taxed at just 15%, many buyers build their deposit significantly faster than saving in a standard high-interest bank account.

Yes. Australian Defence Force (ADF) members serving at Lavarack Barracks or RAAF Base Townsville may be eligible for the Defence Home Ownership Assistance Scheme (DHOAS), which provides monthly home loan interest subsidies. Importantly, eligible ADF members can combine DHOAS with Queensland first home buyer transfer duty concessions and the $30,000 FHOG on brand-new builds.

House-and-land packages typically operate via two separate contracts: a land contract with the developer and a fixed-price building contract with a QBCC-licensed builder. Finance is drawn progressively across standard stages: Deposit (5%), Base/Slab (15-20%), Frame (20%), Enclosed/Lockup (25%), Fixing (20%), and Practical Completion (5-10%).

Given Townsville's tropical climate, inspections should focus on: (1) Subterranean termite management systems and chemical barrier currency, (2) Roof tie-downs, truss integrity, and cyclone collar compliance (N2/N3 ratings), (3) Moisture ingress around wet areas and flashings, and (4) Condition of split-system air conditioning units.

In addition to your deposit, you should set aside $3,000 to $5,000 to comfortably cover professional fees. These include: independent conveyancing/solicitor fees ($1,200 - $1,900), licensed building and pest inspection ($450 - $650), bank application or valuation fees ($0 - $600), statutory title transfer fees, and initial home insurance setup. If buying established under $700k or building new, transfer duty is typically $0 under Queensland concessions.