Buy a Home in Queensland with Just a 5% Deposit
Buying a home in Queensland has become more achievable thanks to the new 5 percent home deposit scheme. With changes designed to make property ownership accessible to more Australians, this update has opened doors for first-home buyers and families who have struggled to save a 20 percent deposit. At Bush to Beach Legal, we help Queensland buyers navigate every legal step of their purchase with confidence and clarity.
What Has Changed
From 1 October 2025, eligible buyers in Queensland can purchase a property with as little as a 5 percent deposit. The government will guarantee up to 15 percent of the property’s value, removing the need for costly Lenders Mortgage Insurance (LMI) in many cases. The program has also removed previous income limits and expanded property price caps, making more homes eligible across the state.
For Queensland buyers, the new property caps mean you can purchase homes up to one million dollars in Brisbane, the Gold Coast and the Sunshine Coast, and up to seven hundred thousand dollars in other regional areas. These changes are expected to make home ownership more realistic for singles, couples and families who have been priced out of the market.
How the 5% Deposit Scheme Works
Under the updated scheme, you contribute a minimum 5 percent deposit while your lender provides the remaining 95 percent. The government acts as a guarantor for up to 15 percent of the loan value, meaning you avoid paying LMI and can get into your new home sooner.
For example, on an $800,000 property you would only need a $40,000 deposit instead of the traditional $160,000. However, it is still important to budget for other expenses such as stamp duty, building and pest inspections, and conveyancing costs.
To qualify, you must intend to live in the property as your main residence. The scheme can apply to new homes, established properties or off-the-plan purchases, provided they fall under the set price caps.
The Legal Side of Buying with a 5% Deposit
While the financial benefits are clear, there are also legal considerations that buyers need to understand. Each contract must be carefully reviewed to ensure the property meets the eligibility criteria and that any conditions are clearly documented. Your conveyancer will confirm whether the purchase complies with the scheme, manage communications with your lender, and ensure the contract protects your interests.
At Bush to Beach Legal, our conveyancing team helps first-home buyers prepare contracts, check property titles, identify potential issues and manage settlement deadlines. We ensure that all legal and lender requirements are met so you can move forward confidently.
Step by Step: Preparing to Buy
- Organise your finances. Make sure you have your 5 percent deposit and secure pre-approval from a participating lender.
- Choose the right property. Confirm the home price is within your region’s cap and that it qualifies under the scheme.
- Engage a conveyancer early. We review your contract before you sign to ensure all legal obligations are met and that there are no unexpected risks.
- Budget for additional costs. Even with a smaller deposit, remember to allow for stamp duty, legal fees and property inspections.
- Settle smoothly. Once your loan is approved, your conveyancer will handle settlement, title registration and final checks to complete your purchase.
Why Professional Conveyancing Matters
Buying a home is one of the largest financial commitments you will ever make. When new government programs and lender conditions are involved, expert guidance becomes even more important. A professional conveyancer understands the finer details of property law, loan approvals and government eligibility requirements.
At Bush to Beach Legal, we provide clear explanations in plain English and guide you through every stage, from contract review to settlement. Our experience across Queensland means we understand local property laws, council requirements and lender processes. Whether you are buying in Brisbane, the Sunshine Coast or a regional area, our goal is to make your purchase seamless and stress free.
Key Points to Remember
Even though the deposit amount is lower, the commitment remains significant. Make sure you are comfortable with your loan repayments and aware of all conditions before signing. If your chosen property exceeds the price cap, you may lose eligibility for the scheme. It is also worth noting that not all lenders participate in the program, so comparing options is essential.
More first-home buyers entering the market may lead to increased competition, especially in sought-after coastal regions. Having your legal and financial arrangements in place early will give you a stronger position when making an offer.
What This Means for Queensland
The new deposit rules are expected to boost activity in Queensland’s housing market, especially in growth areas such as Brisbane, the Sunshine Coast and the Gold Coast. With more buyers able to purchase sooner, demand for entry-level and family homes is likely to rise. For sellers, this could mean more interest and faster transactions, while for buyers it highlights the need to act quickly and seek professional advice.
Conclusion
The 5 percent deposit scheme is an exciting opportunity for Queenslanders to achieve home ownership sooner, but it is vital to approach the process with the right support. Having an experienced conveyancer ensures your purchase is legally sound, your contract is compliant and your settlement is smooth from start to finish.
Bush to Beach Legal specialises in Queensland conveyancing and understands the legal details that make a big difference when buying under government programs. Contact us today to arrange a complimentary contract review and let our team help you secure your new home with confidence.
