Buying your first home in Queensland has always meant juggling affordability, timing, and lifestyle. With property prices rising across Brisbane, the Gold Coast, and the Sunshine Coast, many first-home buyers have found themselves stuck in the saving phase longer than expected. But from 1 October 2025, the landscape shifts dramatically.
The Australian Government is expanding the Home Guarantee Scheme in Queensland to include unlimited places, no income caps, and higher property price thresholds. For Queenslanders, this means more choice, faster entry, and the potential to save thousands by avoiding Lenders Mortgage Insurance (LMI).
This guide from Ausfirst Lending Group explains how the October changes will affect Queensland buyers. We’ll outline what’s new, how it applies in Brisbane and coastal markets, the key opportunities and challenges, and the steps to prepare. By the end, you’ll see why this could be your moment to enter the market and how to do it with confidence.
Why Queensland Buyers Stand to Gain the Most
The changes may apply nationwide, but Queensland’s market dynamics make them especially significant here.
Brisbane affordability gap vs Sydney and Melbourne
While Brisbane’s prices have climbed steadily, the city still sits below Sydney and Melbourne in terms of median house prices. According to ABS housing data, Brisbane’s median dwelling price remains hundreds of thousands lower than Sydney’s. This gap has long attracted interstate migration, and the new scheme will help locals compete in their own market.
Migration and demand pressure
Queensland leads the nation in interstate migration, with thousands moving each year for lifestyle, climate, and affordability. Increased migration is fuelling demand across Brisbane, the Gold Coast, and the Sunshine Coast, leaving many locals competing against southern buyers with larger deposits. The expanded scheme eases the pressure by reducing upfront costs and giving first-home buyers a stronger chance to secure property.
Timely relief for first-home buyers
The expansion comes at the right time. Rising property values and slow wage growth have stretched saving timelines, leaving many stuck renting while prices climb. With the option to buy using a 5% deposit, first-home buyers can shorten the saving process and step into ownership sooner, building equity rather than watching from the sidelines.
Together, these factors position Queenslanders to benefit strongly from the new rules, especially in lifestyle markets where competition has been intensifying.
How the First Home Guarantee Works in Queensland
The First Home Guarantee Scheme in Queensland has existed for several years, but the October 2025 expansion changes how it applies in practice.
The 5% deposit advantage
Traditionally, buyers needed a 20% deposit to avoid paying LMI. On a $1 million Brisbane property, that meant saving $200,000 upfront. With the scheme, you only need a 5% home loan deposit in Queensland, which is $50,000 on the same property. While still a meaningful commitment, it is far more realistic for many households, particularly dual-income families who can save consistently while covering rent and living costs.
Avoiding LMI and saving thousands in upfront costs
LMI remains one of the steepest costs for buyers without a 20% deposit. On an $800,000 Brisbane home, the fee could climb above $25,000. For a $650,000 Sunshine Coast property, it often sits around $12,000–$15,000. Being able to avoid Lenders Mortgage Insurance in Queensland is a major benefit, allowing you to redirect savings towards stamp duty, moving costs, or even small renovations that make the property feel like home from day one.
Unlimited spots and no income caps
Until now, the scheme was capped at a set number of places each financial year, and those allocations often disappeared quickly. From October, there will be no limit on applications, removing the pressure to secure a place before the quota is filled. Income caps will also be removed. This opens the door for higher-earning couples and professionals who were previously excluded despite facing the same challenges in saving a deposit.
Simpler access across regions
The Regional First Home Buyer Guarantee will also be folded into the main scheme. This means buyers in coastal and regional Queensland, including areas such as Maroochydore, Caloundra, or Ipswich, will follow the same eligibility rules as those in Brisbane. The change simplifies the process and ensures consistent access across the state’s growing markets.
New Caps in Brisbane, Gold Coast, and Sunshine Coast
The updated property price caps make a huge difference in which homes qualify.
| Location | Previous Cap | New Cap (from 1 Oct 2025) |
| Brisbane (capital city) | $700,000 | $1,000,000 |
| Gold Coast (regional centre) | $550,000 | $700,000 |
| Sunshine Coast (regional centre) | $550,000 | $700,000 |
What this means in practice
- Brisbane – With the cap lifted to $1 million, buyers can now look at suburbs like Carindale, Chermside, and Holland Park, where family homes with good schools and transport links were previously out of reach.
- Gold Coast – At $700,000, buyers can look at townhouses and houses in Helensvale, Labrador, and Coomera, suburbs that combine affordability with schools, shopping, and transport links.
- Sunshine Coast – The higher cap makes growth areas like Maroochydore and Caloundra more accessible. These suburbs are popular with young professionals who want lifestyle and long-term value in one location.
For many buyers, the new caps mean they are no longer limited to outer-fringe areas or small units. Instead, they can look at houses or townhouses in well-connected communities that better suit long-term living and provide stronger potential for capital growth.
Opportunities Across Queensland Regions
The higher price caps reshape the map of accessible suburbs, opening up areas that previously felt out of reach for first-home buyers.
Brisbane suburbs now within reach
In Brisbane, the $1 million cap includes suburbs with strong fundamentals:
- Carindale – Close to Westfield shopping, good schools, and the Gateway Motorway.
- Chermside – A growth hub with major retail and busway links.
- Holland Park – Popular with families, with access to good schools and the Pacific Motorway.
These suburbs provide more than just a starter home. They combine lifestyle benefits with strong growth potential, giving buyers the opportunity to settle in well-connected communities, enjoy day-to-day convenience, and build long-term value in areas with lasting appeal.
Gold Coast lifestyle zones
Gold Coast markets such as Burleigh, Labrador, and Helensvale now fall within the $700,000 threshold for certain houses and townhouses. Each of these areas combines coastal lifestyle with access to employment hubs and strong infrastructure, making them desirable for both locals and new arrivals from interstate. The balance of beach, work opportunities, and affordability is a rare drawcard.
Sunshine Coast case
On the Sunshine Coast, properties in Maroochydore or Caloundra are often priced between $600,000 and $700,000, which now qualifies under the scheme. These suburbs attract young professionals and families seeking both lifestyle appeal and strong long-term capital growth. The higher cap gives first-home buyers the chance to enter high-demand areas that were previously out of reach.
Key Benefits for First-Home Buyers in Queensland
Queensland’s conditions make the scheme especially valuable, giving first-home buyers benefits beyond deposit savings. A Queensland mortgage broker for first-home buyers can help you make the most of these opportunities.
1. Entering lifestyle markets early
Migration into Queensland continues at pace, and buying sooner means securing a property before rising demand pushes prices higher. Popular coastal and inner-city areas are particularly sensitive to competition, so entering the market earlier helps buyers establish themselves in desirable locations that may become even harder to access over time.
2. Access to growth corridors
Suburbs such as Ipswich and Logan remain relatively affordable compared to Brisbane’s inner and middle rings. These areas are also attracting significant investment in infrastructure, including transport upgrades, schools, and community facilities. For first-home buyers, this combination of lower entry costs and long-term growth drivers creates strong potential for both livability and capital growth.
3. Competing with investors
Buying with just a 5% deposit gives first-home buyers the flexibility to move fast when the right property becomes available. This is particularly important in suburbs with high investor activity, where properties often sell within days of being listed. Having the flexibility to move fast can be the difference between missing out and securing a suitable home.
4. Diversity of housing
The scheme covers a broad range of properties, from modern townhouses in Brisbane’s inner suburbs to detached homes on the Sunshine Coast. This diversity makes it easier for buyers to find homes that match their budget, lifestyle preferences, and long-term goals, whether that means starting with a townhouse or moving directly into a family home.
5. Cash flow flexibility
Avoiding LMI can save tens of thousands of dollars, and those funds can be redirected to other priorities. Buyers may choose to strengthen their financial buffer, prepare for possible interest rate changes, cover moving and furnishing costs, or invest in renovations that add value to their new home. This flexibility reduces financial stress and helps households settle in more comfortably.
6. Broader eligibility
With income caps removed, dual-income families and higher-earning professionals who were previously excluded now have access. This widens the pool of participants and ensures that more Queenslanders, particularly those who can borrow responsibly but struggled to save a 20% deposit, can finally enter the market.
7. Regional inclusivity
Folding the regional guarantee into the main scheme means greater consistency across Queensland. Buyers in the Gold Coast, Sunshine Coast, and other regional centres can now apply under the same rules as Brisbane residents. This makes the scheme easier to understand and ensures fair access to opportunities across the state’s varied housing markets.
Challenges Queensland Buyers Still Face
Even with expanded access, the scheme will not remove every hurdle. Buyers need to be prepared for challenges that influence affordability, borrowing capacity, and the types of properties they can realistically secure. Careful planning remains essential to make the most of the new opportunities.
- Price surges may occur as higher caps increase demand in regions like the Sunshine Coast.
- Single buyers may struggle with borrowing limits, while dual-income households often qualify more easily.
- Commute trade-offs remain, with affordable homes often further from employment centres.
- Ongoing affordability pressures continue as interest rates and living costs affect repayment sustainability.
- Supply limitations persist since broader eligibility does not create more homes, and demand will stay high.
How to Prepare for the October 2025 Launch
To maximise your chances, preparation is key. The Home Guarantee Scheme makes buying easier, but you still need to be organised so you can act quickly once the changes take effect. Here are the key steps to get ready for the scheme:
- Check eligibility – A new eligibility tool will be available from 1 October 2025. Until then, use Housing Australia’s resources to confirm criteria.
- Review caps – Limits are $1 million in Brisbane and $700,000 on the Gold Coast and Sunshine Coast. Focus your search within these ranges.
- Plan savings – A 5% deposit is still significant. Setting a clear savings goal will keep you on track and make the process more manageable.
- Prepare documents – Have payslips, bank statements, and ID ready to avoid delays.
- Contact a lender – Applications must go through participating banks or credit unions.
- Get pre-approval – Once lodged, your lender submits to Housing Australia. Pre-approval strengthens your position when buying.
- Search for property – With pre-approval, you can look confidently for homes that fit your budget and lifestyle.
- Use a broker – Local brokers understand Queensland lenders’ policies and can guide you to the right option.
Real-Life Example: Brisbane Couple Buying With 5% Deposit
Let’s walk through a practical example. A couple purchases a home in Holland Park for $800,000 with a 5% deposit of $40,000. Under the scheme, they avoid paying around $25,000 in LMI, which frees up cash for moving costs or small renovations. Their loan is structured with a mix of fixed and variable rates to balance stability with flexibility.
With a combined income of $160,000, they meet borrowing requirements and face repayments of about $4,200 per month at current interest rates, with a 3% servicing buffer applied. By entering the market earlier, they avoid years of rent and secure a position in a family-friendly suburb with strong growth potential.
How AusFirst Lending Group Supports Queensland Buyers
Our role as mortgage brokers is to turn the opportunities created by the scheme into real outcomes for you. Buying a first home involves more than securing finance, and the right strategy can make the difference between success and setback.
- Local lender expertise – We know which banks and credit unions are most favourable in Brisbane, Gold Coast, and Sunshine Coast.
- Balancing lifestyle vs affordability – We help you weigh choices, such as whether to prioritise proximity to work or a coastal lifestyle.
- Smart structuring – From offsets to split loans, we design strategies that support you now and in the long term.
- Auction readiness – With fast pre-approval and lender turnaround strategies, we ensure you’re competitive in Queensland’s fast-paced market.
Take the Next Step Towards Queensland Homeownership
From 1 October 2025, the First Home Guarantee Scheme will open more doors for Queensland buyers than ever before. As a local mortgage broker in Sunshine Coast, we know how unlimited places, no income caps, and higher property thresholds can help you enter the market sooner, save thousands in LMI, and secure a home in Brisbane or coastal lifestyle regions before migration and demand push prices higher.
The opportunity is clear, but preparation matters. The earlier you understand your options, the better positioned you’ll be when the scheme takes effect. Get in touch with Ausfirst Lending Group today to map your strategy, secure pre-approval, and step confidently into your first home.
Frequently Asked Questions (FAQs)
Yes, you may be able to. The First Home Guarantee works separately from state-based incentives like the Queensland First Home Owner Grant or stamp duty concessions. Using both together could reduce your upfront costs significantly. It is important to check the specific eligibility rules for each and ensure you meet the requirements before applying.
Yes. One of the conditions is that you must live in the property as your principal place of residence within a set timeframe, usually within six months of settlement. The scheme is designed to help you into your own home, not to purchase an investment property. Later, if your circumstances change, you may explore other options.
If property values continue to rise, you may benefit by building equity more quickly than you would have by waiting to save a 20% deposit. The risk is that repayments may feel tight if interest rates increase at the same time. That is why it is important to budget carefully and choose a loan structure that gives you some flexibility.
Yes, you can still apply, but lenders will factor your existing debts into their serviceability assessment. Personal loans, credit cards, and car finance can reduce your borrowing power. Paying down or closing smaller debts before applying could improve your position. As brokers, we can run borrowing power scenarios to help you understand where you stand before you apply.
Not necessarily, but there are differences. Lenders may apply stricter rules for smaller apartments or properties in large complexes, particularly in Brisbane and coastal markets. Townhouses are often viewed more favourably than high-density units. Checking how your preferred property type is treated by different lenders is important, and this is something we can help clarify for you.
