Do You Know What Support First Home Buyers Can Access?

What Deposit Do You Need as a First Home Buyer?

First home buyers can now purchase with a deposit as low as 5% of the property value under the Australian Government 5% Deposit Scheme. Housing Australia guarantees the difference between your deposit and 20% of the purchase price, which removes the need for lenders mortgage insurance. No income caps apply, and there are no annual limits on how many buyers can access the scheme.

In Brisbane, the property price cap is $1,000,000, which covers most properties in Sunnybank and surrounding suburbs. Applications are made through a participating lender, not directly through Housing Australia. A mortgage broker can confirm which lenders on the panel offer the most suitable loan structure for your circumstances.

Consider a buyer who has saved $50,000 and wants to purchase in Sunnybank. Under the 5% deposit scheme, that buyer could look at properties up to $1,000,000 without paying lenders mortgage insurance. The same buyer would also need to cover settlement costs, which typically include conveyancing fees, building and pest inspections, and loan application fees.

Queensland First Home Owner Grant and Stamp Duty Concessions

Queensland offers a $15,000 first home owner grant for new homes valued under $750,000, provided the contract was signed from 1 July 2026 onwards. This grant does not apply to established homes. The grant was $30,000 for contracts signed between 20 November 2023 and 30 June 2026, so timing matters.

Stamp duty concessions depend on whether you are buying an established home or a new build. For established homes, no transfer duty applies on properties up to $700,000, and a concession applies on properties between $700,000 and $800,000. For new builds, a full transfer duty concession applies with no price cap. This means a first home buyer purchasing a newly constructed townhouse in Sunnybank could avoid transfer duty entirely, regardless of the purchase price.

Sunnybank has a mix of established homes, particularly older Queenslanders and brick-and-tile homes, as well as newer townhouses and apartments near the Sunnybank Plaza precinct. Buyers purchasing an established home at the median price in the area would likely qualify for at least a partial stamp duty concession, which can reduce upfront costs by several thousand dollars.

Can You Use Multiple Schemes at the Same Time?

You can combine state and territory grants and stamp duty concessions with the Australian Government 5% Deposit Scheme. A first home buyer purchasing a new townhouse in Sunnybank with a 5% deposit could access the $15,000 Queensland first home owner grant, the full transfer duty concession on new builds, and the lenders mortgage insurance waiver through the federal scheme.

Help to Buy, which allows the Australian Government to take an equity stake of up to 30% for an existing home or 40% for a new home, cannot be combined with the 5% Deposit Scheme. However, it can be used alongside the Queensland first home owner grant and stamp duty concessions in most cases. Income limits apply under Help to Buy: $100,000 for individuals and $160,000 for joint applicants or single parents.

Buyers who are considering both schemes should assess which structure results in lower total borrowing costs over the life of the loan. An equity share with the government means you share any capital gain when you sell, but it also reduces the size of your home loan and the interest you pay each month.

How Does Pre-Approval Work for First Home Buyers?

Pre-approval gives you a clear understanding of your borrowing capacity before you start attending inspections. Lenders assess your income, expenses, existing debts, and credit history to determine how much they are willing to lend. Pre-approval is typically valid for 90 days, though this varies by lender.

In our experience, first home buyers in Sunnybank often underestimate how much they can borrow or overestimate what they need to save. A formal assessment removes the guesswork and allows you to focus on properties within your confirmed range. Pre-approval also demonstrates to vendors and agents that you are a serious buyer, which can be an advantage in a competitive market.

You will need to provide proof of income, recent payslips, tax returns if you are self-employed, bank statements showing your savings history, and identification documents. If you have received a financial gift from family, lenders will require a signed gift declaration confirming that the funds do not need to be repaid. Some lenders also accept rental history as evidence of your ability to meet regular repayment obligations.

What Is the Difference Between Fixed and Variable Interest Rates?

A fixed interest rate locks in your rate for a set period, usually between one and five years. Your repayments remain the same during that period, which makes budgeting more predictable. A variable interest rate can move up or down depending on broader market conditions and the lender's pricing decisions. Most variable rate loans include features such as offset accounts and redraw facilities, which allow you to reduce the interest you pay or access extra repayments when needed.

Many first home buyers choose a split loan structure, where part of the loan is fixed and part is variable. This approach provides some rate certainty while retaining flexibility. A borrower with a $600,000 loan might fix $400,000 at a set rate and leave $200,000 on a variable rate with an offset account. If rates fall, the variable portion benefits immediately. If rates rise, the fixed portion provides protection.

Fixed rates generally do not allow for unlimited extra repayments. Most lenders cap additional repayments at $10,000 to $30,000 per year on a fixed loan. If you plan to make large lump sum payments, a variable rate or split structure may suit your situation more closely. Wagstaff Finance can help you assess your borrowing capacity and match your loan structure to your repayment intentions.

What Are the Ongoing Costs of Owning a Home in Sunnybank?

Beyond your mortgage repayments, you will need to budget for council rates, water and sewerage charges, building insurance, and general maintenance. Sunnybank falls within the Brisbane City Council area, and rates are calculated based on the property's land value and the council's annual rate in the dollar. For a standard residential property, annual council rates typically range from $1,500 to $2,500.

If you purchase a townhouse or apartment, you will also pay body corporate fees, which cover shared areas, insurance for common property, and maintenance of facilities such as gardens, driveways, and pools. Body corporate fees in Sunnybank vary widely depending on the age and amenities of the complex. Older walk-up units may have fees as low as $800 per quarter, while newer complexes with lifts, pools, and gyms can exceed $2,000 per quarter.

Lenders take these ongoing costs into account when assessing your loan application. They calculate your income after tax, subtract your regular living expenses and any existing debt repayments, and then factor in the estimated costs of owning the property. First home buyers who are currently renting sometimes assume their mortgage repayment will replace their rent, but the total cost of ownership is higher once rates, insurance, and maintenance are included.

Choosing a Lender That Matches Your Circumstances

Not all lenders assess applications in the same way. Some lenders are more flexible with buyers who have a shorter employment history or who work in casual roles. Others offer lower rates but require a larger deposit or apply stricter lending criteria. The lender that offers the lowest advertised rate is not always the lender that will approve your application or provide the most suitable loan features.

Wagstaff Finance works with a panel of over 30 lenders, including major banks and specialist lenders. We match your circumstances to the lender most likely to approve your application at a competitive rate and with the features you need. This is particularly relevant for first home buyers who may not meet the serviceability requirements of one lender but are well within the acceptable range for another.

If you are ready to take the next step or want to confirm what you can afford before you start looking, call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions