First Home Loan Deposit Scheme Explained For North Brisbane Buyers

The First Home Loan Deposit Scheme (FHLDS) is a federal government initiative designed to help eligible first-home buyers purchase a property with a deposit as low as 5%. Under this scheme, the government acts as a guarantor, removing the need to pay Lenders Mortgage Insurance (LMI), a saving of thousands of dollars.

Launched in 2020, the scheme is now part of the Home Guarantee Scheme and continues to support eligible Australians stepping onto the property ladder sooner.

In North Brisbane, where median house prices can stretch budgets, this scheme can make a big difference. With a reduced deposit requirement, it opens the door for many who might otherwise be locked out of the market.

Let’s unpack how it works, who’s eligible, and how buyers in North Brisbane can make the most of it.

Who is Eligible for the Scheme in North Brisbane?

To access the First Home Loan Deposit Scheme in North Brisbane, buyers must meet specific eligibility criteria:

• Australian citizen aged 18 or over (permanent residents are not eligible).
  
  
• First-time homebuyer who has never owned or held an interest in residential property in Australia.
  
  
• Single applicants must earn $125,000 or less in taxable income per year.
  
  
• Couples must earn a combined taxable income of $200,000 or less.
  
  
• Must intend to live in the property as your principal place of residence.
  
  
• A minimum deposit of 5% (but less than 20%) is required.
  
  
• The property must fall within local price caps (we’ll go into these next).

Applicants must also have their finances in order, with a good credit history and capacity to repay the loan.

Property Price Caps in North Brisbane Under the Scheme

One of the key eligibility factors for the FHLDS is the property price threshold, which varies by location. For North Brisbane, Queensland, the current price cap for eligible properties is $700,000 (as of the 2024–2025 financial year).

This cap applies to:

• New or existing homes
  
  
• House and land packages
  
  
• Land with a separate building contract
  
  
• Off-the-plan apartments or townhouses

Given North Brisbane's diverse real estate market, this cap allows for a wide range of options, including houses in outer suburbs and units closer to the CBD. It's important to act quickly. Places in the scheme are limited to 35,000 guarantees each financial year, shared across various programs.

How Does the Scheme Benefit First-Home Buyers?

The biggest advantage of the FHLDS is that it removes the need for Lenders Mortgage Insurance (LMI), a significant upfront cost for buyers with deposits under 20%.

Here’s how the scheme helps North Brisbane buyers:

• Lower deposit required – Only 5% needed, not 20%.
  
  
• Avoid LMI, potentially saving $10,000–$30,000 depending on loan size.
  
  
• Enter the market sooner, instead of spending years saving a full deposit.
  
  
• Access competitive home loan rates through participating lenders.
  
  
• Supports buying in rising markets, like many parts of North Brisbane.

For young professionals, couples, and growing families, the scheme makes it financially easier to transition from renting to owning.

How to Apply Through a Mortgage Broker

Applying for the FHLDS can feel overwhelming, especially for first-timers. That’s where a North Brisbane mortgage broker comes in handy.

Here’s the typical process when applying through a broker like Kelly Brothers Finance:

1. Initial consultation – Review your financial situation and confirm eligibility.
   
   
2. Pre-approval – Get home loan pre-approval through a participating lender.
   
   
3. Reserve a place – Your broker helps secure a spot under the scheme.
   
   
4. Find a property – Property must meet price caps and be eligible under the scheme.
   
   
5. Finalise your loan – Broker liaises with the lender to complete your application.

With their expertise, brokers streamline the process, give access to a broader range of lenders, and ensure you tick all the right boxes.

Other Government Schemes You May Qualify For

Many North Brisbane buyers may also be eligible for additional support programs alongside the FHLDS:

• First Home Owner Grant (FHOG) – $15,000 for new builds in Queensland.
  
  
• First Home Super Saver Scheme (FHSSS) – Access voluntary super contributions to boost your deposit.
  
  
• Stamp duty concessions – Discounts or exemptions for first-home buyers in Queensland.

Working with a broker ensures you’re not leaving any money on the table.

Is the First Home Loan Deposit Scheme Right for You?

While the scheme offers major benefits, it’s not the perfect fit for everyone. It depends on:

• Your income and financial stability
  
  
• The type of property you want to buy
  
  
• Whether you're ready to purchase within the time limits (90 days from pre-approval)
  
  
• Your comfort level with debt and monthly repayments

A mortgage broker can run the numbers and help you make the right call.

Why Work with Kelly Brothers Finance?

As experienced North Brisbane mortgage brokers, Kelly Brothers Finance specialises in helping first-home buyers understand their options, including the First Home Loan Deposit Scheme.

Here’s why local buyers trust them:

• In-depth knowledge of Brisbane’s property market
  
  
• Strong relationships with scheme-participating lenders
  
  
• Personalised advice tailored to your goals and finances
  
  
• Easy-to-follow guidance through every step of the application process
  
  
• Local experts who care about helping you buy your first home

They don’t just find you a loan; they help you make a confident move into homeownership.

FAQs

Can I use the First Home Loan Deposit Scheme with other grants?

Yes, you can combine it with the First Home Owner Grant and stamp duty concessions in Queensland.

How many places are available each year?

There are 35,000 total places annually across all Home Guarantee Scheme programs.

Do I still need to pay stamp duty?

In Queensland, you may be eligible for concessions or full exemptions depending on the property value.

What happens if I buy a property above the price cap?

Unfortunately, you won’t qualify for the scheme if the property price exceeds the North Brisbane cap of $700,000.

Can couples apply for the scheme together?

Yes, but only if you're married or in a de facto relationship. Friends or siblings applying together aren’t eligible.

How do I prove I'm a first-time buyer?

You’ll sign a statutory declaration and provide documentation confirming you’ve never owned residential property in Australia.

What if my circumstances change after applying?

If your income increases or you become ineligible before settlement, you may lose your place. It’s vital to notify your broker immediately.

Final Thoughts



The First Home Loan Deposit Scheme is a valuable stepping stone for many first-time buyers across North Brisbane. It reduces the deposit burden and fast-tracks homeownership, especially in a competitive property market like Brisbane’s.

Navigating eligibility, deadlines, and lenders can be tricky, but that’s where expert help comes in.

Kelly Brothers Finance, your trusted North Brisbane mortgage brokers, is here to guide you every step of the way. Whether it’s understanding your options, finding a competitive loan, or applying under the FHLDS, we make it easier to buy your first home.

Call us today on 07 3847 9450 or visit www.kellybrothersfinance.com.au to get started with a personalised consultation.