First Home Guarantee Scheme in North Brisbane, QLD, The 2026 Guide

In 2026, first home buyers in North Brisbane, QLD have access to one of the strongest deposit assistance schemes ever offered by the Australian Government. The First Home Guarantee lets you buy with just 5% deposit and completely skip lenders mortgage insurance - which can save you over $40,000 on a $1,000,000 purchase in suburbs like Ashgrove - Kedron or Paddington.

The scheme has no income caps and works across all North Brisbane suburbs up to $1,000,000. That means you can qualify regardless of whether you're earning $60,000 or $160,000, and the price cap covers most of the established housing market across North Brisbane, QLD.

Kelly Brothers Finance helps first home buyers across North Brisbane, QLD navigate the First Home Guarantee application process and compare options across 60+ lenders, completely free of charge.

Here's what you need to know about qualifying for and using the First Home Guarantee in North Brisbane, QLD in 2026.

What makes the First Home Guarantee different from other schemes?

Unlike state-based schemes that come and go with budget changes, the First Home Guarantee is an ongoing federal program with consistent rules. You need just 5% deposit, and the government guarantees up to 15% of the property value, which means lenders don't require LMI even though you're borrowing 95% of the purchase price.

The removal of income caps in October 2025 was the game-changer. Previously, single applicants earning over $125,000 or couples over $200,000 were excluded. Now, your income doesn't matter - only that you're a genuine first home buyer who meets the basic eligibility criteria.

How does the First Home Guarantee work?

The First Home Guarantee works by the government stepping in as a guarantor for part of your home loan. You contribute 5% deposit, borrow 95% from a lender, and the government guarantees up to 15% of the property value to cover the lender's risk. This removes the need for LMI because the lender is protected by the government guarantee instead of an insurance premium you would normally pay.

Once you own 20% equity in your property - either through repayments or capital growth - the guarantee automatically ends. Your exact borrowing capacity depends on your income and chosen lender, which is what we assess with you in a free consultation.

Government schemes and grants available to first home buyers

• First Home Guarantee: 5% deposit, no LMI, $1,000,000 price cap in North Brisbane - no income limits.
• Queensland First Home Owner Grant:$30,000 for new homes under $750,000 (reduces to $15,000 from July 2026).
• Queensland stamp duty exemption:$0 transfer duty on new homes of any price, full exemption on established homes up to $700,000.
• Queensland Boost to Buy: shared equity scheme with government contributing up to 30% on new homes, 25% on established homes, for income-eligible buyers.

• Kelly Brothers Finance Like to know if you qualify for the First Home Guarantee? Eligibility requirements are straightforward, but lender participation varies and some have waiting lists. A free chat with a North Brisbane mortgage broker gives you a clear picture - no commitment, no pressure. Free 15-min chat 60+ lenders No obligation Book a free chat today →

How do mortgage brokers help first home buyers access the First Home Guarantee in North Brisbane, QLD?

The First Home Guarantee application process involves both scheme eligibility and lender approval, and not all lenders participate in the program. We help you understand which lenders offer the guarantee and which ones are most likely to approve your specific income and deposit situation.

Step 1: Talk to us

Get in touch and we'll confirm your First Home Guarantee eligibility and assess your borrowing capacity across participating lenders in our 60+ lender panel.

Step 2: Confirm your eligibility

We verify that you meet the basic criteria: never owned property in Australia, Australian citizen or permanent resident, and buying within the $1,000,000 price cap for North Brisbane, QLD.

Step 3: Choose your participating lender

We compare rates, fees, and approval likelihood across participating lenders. Some lenders have faster processing times or better rates for First Home Guarantee applications than others.

Step 4: Submit your application

We prepare your loan application and First Home Guarantee application simultaneously. The lender coordinates with Services Australia to secure your guarantee approval alongside your loan approval.

Step 5: Property search and contract

With pre-approval confirmed, you can search for properties knowing exactly what you can afford. We're available throughout the process to handle any lender queries or changes.

Step 6: Settlement and guarantee activation

At settlement, the guarantee activates automatically. You own your home with just 5% deposit paid, and the government guarantee protects your lender without any ongoing cost to you.

Common mistakes first home buyers make with the guarantee

The biggest mistake is assuming all lenders offer the same experience under the First Home Guarantee. While the scheme rules are consistent, lenders vary significantly in their processing times, interest rates, and additional fees. Some participating lenders have smoother guarantee application processes than others.

Another common error is not considering the property type restrictions. The guarantee covers established homes, new homes, house and land packages, and units - but not vacant land on its own. Investment properties don't qualify, and you must move into the property as your principal place of residence within 12 months of settlement.

First Home Guarantee vs other low deposit options

The First Home Guarantee isn't your only 5% deposit option, though it's often the strongest. Here's how it compares to alternatives available in North Brisbane, QLD:

• First Home Guarantee: 5% deposit, no LMI, government guarantee, $1,000,000 price cap, no income limits, must be first home buyer.
• Professional LMI waivers: available to doctors, lawyers, accountants and other professionals up to 90-95% LVR with no LMI, but limited to specific lenders and professions.
• Standard 5% deposit loans: available from most lenders but require LMI, which adds approximately $41,500 on a $1,000,000 purchase as of April 2026.
• Family guarantee: parents use their property equity as security, allowing you to borrow 100% with no LMI, but involves family members in your loan structure.

• Kelly Brothers Finance Ready to find out which deposit option works best for your situation? We compare loans from 60+ lenders across North Brisbane. Free service, no cost to you. Free 15-min chat 60+ lenders No obligation Book a free chat today →

Frequently Asked Questions

Do I qualify for the First Home Guarantee if I earn over $100,000?

Yes - income caps were removed in October 2025. Your eligibility now depends only on being a first home buyer, Australian citizen or permanent resident, and buying within the $1,000,000 price cap for North Brisbane, QLD.

Can I use the First Home Guarantee to buy an investment property?

No - the guarantee only applies to properties you'll live in as your principal place of residence. You must move in within 12 months of settlement and cannot rent the property out initially.

What happens to the guarantee when I build equity?

The guarantee automatically ends when you reach 20% equity in your property, either through loan repayments or capital growth. At that point, you own the home outright without any government involvement.

Do all lenders participate in the First Home Guarantee?

No - only approved lenders can offer First Home Guarantee loans. Most major banks participate, but rates, fees, and processing times vary between participating lenders, which is why comparing options matters.

Can I combine the First Home Guarantee with other grants?

Yes - you can use the First Home Guarantee alongside the Queensland First Home Owner Grant and stamp duty concessions. The combination can save you over $70,000 on a new home purchase under $750,000 as of April 2026.

Should I use a broker or go to my bank for the First Home Guarantee?

A mortgage broker, every time. Not all lenders participate in the scheme, and participating lenders offer different rates and fees. We compare your options across 60+ lenders to find participating lenders with the strongest rates for your situation.

What deposit do I need to save for the First Home Guarantee?

Just 5% of the purchase price, plus stamp duty and other settlement costs. On a $700,000 home in Kelvin Grove , that's $35,000 deposit plus approximately $5,000 in other costs, significantly less than the traditional 20% deposit plus LMI approach.

Your Next Steps

The First Home Guarantee removes the biggest barrier to homeownership for most first home buyers - the combination of a large deposit and LMI costs. Getting this right means understanding which participating lenders offer the strongest rates and fastest processing for your income and deposit situation.

Ready to find out if the First Home Guarantee is right for your situation? Contact Tom Kelly for a free consultation or call 07 3847 9450. We'll confirm your eligibility and compare your options across participating lenders to find the best fit for your deposit, income, and goals.

Kelly Brothers Finance · Paddington and North Brisbane, QLD · General information only — this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.