Can You Buy a Home in Queensland with Just a 5% Deposit? (2026 Guide)

Many first home buyers assume they need a 20% deposit before purchasing a home.

In reality, eligible Queensland buyers may be able to purchase with a much smaller deposit by using government incentives such as the First Home Owner Grant and the First Home Guarantee.

In this guide, we'll explain how these schemes work and provide an example of how a buyer could potentially purchase a $750,000 property with approximately $12,000 in savings.

How Much Deposit Do You Need to Buy a Home in Queensland?

Traditionally, lenders preferred borrowers to have a 20% deposit when purchasing a property.

For a $750,000 home, that would mean saving:

$150,000 deposit (20%)

For many Australians, this can take years to achieve.

Fortunately, there are alternative pathways available for eligible first home buyers.

Depending on your circumstances, you may be able to purchase with:

• A 10% deposit

• A 5% deposit

• Government assistance through the First Home Owner Grant

• Reduced upfront costs through the Home Guarantee Scheme

  
  

The right option will depend on your income, savings, property type, and eligibility for government schemes.

What Is the Home Guarantee Scheme?

The Home Guarantee Scheme is an Australian Government initiative designed to help eligible first home buyers enter the property market sooner.

Under the scheme, eligible buyers may be able to purchase a property with as little as a 5% deposit, without paying Lenders Mortgage Insurance (LMI).

Normally, borrowers with less than a 20% deposit are required to pay LMI, which can add thousands of dollars to the cost of purchasing a home.

The First Home Guarantee allows Housing Australia to guarantee part of the loan, reducing the need for LMI and lowering the savings required to purchase a property.

Key Benefits

✔ Purchase with as little as 5% deposit

✔ No Lenders Mortgage Insurance (for eligible applicants)

✔ Enter the property market sooner

✔ Build equity earlier

What Is the Queensland First Home Owner Grant?

The Queensland Government currently offers a $30,000 First Home Owner Grant for eligible buyers purchasing or building a qualifying new home.

Unlike a loan, the grant does not need to be repaid.

For many first home buyers, this grant can significantly reduce the amount of savings required to complete a purchase.

Benefits of the First Home Owner Grant

• $30,000 government grant

• Available on eligible new homes

• Does not need to be repaid

• Can assist with overall purchase costs

  
  

As with all government incentives, eligibility criteria apply.

Example: Building a $750,000 Home with Approximately $12,000 in Savings

Let's look at a simplified example.

Property Purchase Price

$750,000

Government Support Available

First Home Owner Grant: $30,000

First Home Guarantee: 5% deposit pathway

Estimated Buyer Contribution

Approximately $12,000

This example assumes eligibility for both schemes and includes estimated purchasing costs.

Every buyer's situation is different, and actual figures will vary based on lender requirements, government policy settings, and personal circumstances.

However, it highlights an important point:

Many first home buyers may be closer to purchasing a home than they realise.

Why Consider Entering the Property Market Earlier?

Start Building Equity

Instead of waiting years to save a larger deposit, purchasing sooner may allow you to begin building equity immediately.

As you repay your loan and property values potentially increase over time, your equity position may improve.

Create More Future Opportunities

Property ownership can provide flexibility for future decisions, including:

• Upgrading to a larger home

• Renovating

• Investing in additional property

• Accessing equity for future goals

  
  

Reduce the Impact of Rising Property Prices

While saving a larger deposit, property values can continue to rise.

For some buyers, entering the market earlier may help reduce the risk of being priced out of preferred locations.

Who May Be Eligible?

Eligibility requirements vary between schemes and may change over time.

Factors that may be considered include:

• Australian citizenship or permanent residency requirements

• Income thresholds

• First home buyer status

• Owner-occupier requirements

• Property price caps

• Property type requirements

  
  

A mortgage broker can help determine which schemes may be available based on your circumstances.

Frequently Asked Questions

Can I Buy a House with a 5% Deposit in Queensland?

Yes, eligible buyers may be able to purchase with a 5% deposit through the First Home Guarantee scheme.

Do I Need a 20% Deposit to Buy My First Home?

Not necessarily. Many lenders offer solutions for buyers with smaller deposits, and government support schemes may reduce the upfront funds required.

Do I Have to Pay Lenders Mortgage Insurance?

Eligible First Home Guarantee applicants may be able to avoid paying Lenders Mortgage Insurance despite having less than a 20% deposit.

Can I Use the First Home Owner Grant as Part of My Purchase?

In many cases, the grant can assist with the overall funds required to complete the purchase, subject to lender and scheme requirements.

Are These Schemes Available for Existing Homes?

Scheme rules can vary. Eligibility depends on the specific government program and property being purchased.

How Do I Know If I'm Eligible?

The easiest way is to speak with a mortgage broker who can assess your circumstances and explain the options available to you.

Find Out What's Possible

Many Australians spend years assuming they are not ready to purchase a home.

The reality is that government incentives and lending options may make home ownership possible sooner than expected.

If you're considering purchasing your first home and want to understand your options, professional advice can help you determine:

• How much you may be able to borrow

• Which government schemes you may qualify for

• How much savings you may need

• The most suitable pathway into the property market

  
  

Ready to Explore Your Options?

Contact Thrive Financial Group to discuss your first home buyer goals and find out what may be possible for your situation.

Disclaimer: This article contains general information only and does not constitute financial, legal, or credit advice. Eligibility criteria, government scheme availability, lender policies, and personal circumstances will affect outcomes. Consider obtaining professional advice before making financial decisions.