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Queensland Housing Finance Loan

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Cost of the Queensland Housing Finance Loan

There are costs you need to save for when buying or building a home with a Queensland Housing Finance Loan:

Deposit: A deposit of 5% of the purchase price of your home ($5,000 for a $100,000 house) is required.
Application fees: When buying or building a house, unit, townhouse, or duplex you will have to pay a loan application fee.
Financial advice: It is compulsory to seek independent financial advice, for which you will be reimbursed up to $100, should your loan be approved.
Mortgage registration fees: You will have to pay to have the department’s mortgage over your home registered on your new home title. (The ‘title’ is a register of legal interests of property kept by the Titles Office.)

Other costs

You will also need savings for legal fees, stamp duty and registration fees. You should ask your solicitor for an estimate of these costs based on your particular circumstances, as they do vary depending on the purchase price, location of the house and other factors.

You must fully insure the property. You need to budget for this, and possibly moving costs and building and termite inspections.

What about the First Home Owner Grant?

While available, and if you are eligible, you must use the First Home Owner Grant towards the purchase price of your home, your deposit (up to half of the minimum deposit), legal fees or other associated costs. Visit the Queensland Office of State Revenue website for more information on the First Home Owner Grant.

How much can I borrow?

The amount of money you can borrow is based on:

your gross and disposable income;
the term of your loan;
current interest rates; and
the price of the home you want to buy or build.

How much will I repay?

You will have to repay the full amount of your loan, plus interest and any applicable fees and charges.

The amount of your monthly repayments will depend on the amount of your loan, your income, current interest rates and the term of your loan.

Budget Planner

This budget planner will help you compare your income with expenses as a home owner.

You may have expenses not listed in the Planner. Make sure you include them as well.

What about my other debts?

You must not have other significant debts when you apply for a Queensland Housing Finance Loan. This includes credit cards and personal loans.

Other debts may reduce the amount you can borrow. Also, as your loan repayments may vary due to interest rate changes over the term of your loan, additional debts may cause you financial hardship.

Similarly, taking out other loans after a home loan has been approved may affect your ability to meet your loan repayments and the other costs of home ownership.

How long will it take to repay my Loan?

The amount of time it takes to repay your loan (the loan term) depends on the amount you borrow, interest rates, your repayments and your future earning potential. The normal maximum loan term is 25 years. Making extra or larger repayments can reduce your loan term.

When do I apply for a Queensland Housing Finance Loan?

Once you have received written confirmation of your eligibility from the department, saved your deposit, and signed a contract, you should immediately apply for your loan. Any contract you sign should be subject to a finance clause.

Check with your solicitor about the correct wording. It is very important. Don’t rely on the seller or the real estate agent telling you that a particular 'subject to finance' provision is appropriate for you.

Application kits containing the forms you need to complete are available from the department. The kits also contain Information Sheets on home ownership and borrowing, and other useful information.

You should complete the application forms, compile all the information needed and lodge your application. The department will then contact you to arrange a face-to-face or telephone interview.

Approval of your loan will be confirmed in writing when the department has checked that you meet lending guidelines. Should further information be needed to process your application, you will be contacted by telephone or in writing.

What legal documents do I have to sign?

This is only a general outline, and is not intended to be complete or used as legal advice.

When buying a house with a Queensland Housing Finance Loan, you will have to sign the following legal documents:

The contract to buy your home. This is a contract on terms acceptable to you and the seller and is subject to a number of conditions that you should carefully consider. You should not sign a contract until your solicitor has checked it, and you should arrange to insure the property from the day you sign the contract.
Loan agreement and mortgage. These are signed after your application has been approved and after you have received independent financial advice.
Transfer documents. Your solicitor will prepare these as part of the conveyance.

When buying land and building a house with a Queensland Housing Finance Loan, you will have to sign the following legal documents:

The contract to buy your land (if not already owned by you). This is a contract on terms acceptable to you and the seller and is subject to a number of conditions that you should carefully consider with your solicitor.
The contract to build your home. This is a contract on terms acceptable to you and the builder and again is subject to a number of conditions that need careful consideration.
Loan agreement and mortgage (as for buying an established house).
Transfer documents to transfer the land to you (if it is not already owned by you). Your solicitor will prepare these as part of the conveyance.

We strongly recommend you get legal advice from your solicitor before signing any contract, mortgage or loan agreement.

Can I sell my home?

You can sell your home at any time and pay out your Queensland Housing Finance Loan. Should you pay out your loan early, some fees and charges may apply if you have fixed your interest rate.

What if I move out of my home?

The Queensland Housing Finance Loan is designed for people who live in the home they are buying. Should you move out of your home and sublet or rent it to other people, the rate of interest you are paying may increase.

What happens if I lose my job or have problems making payments?

Some events are completely unplanned and unexpected. But others, such as expanding your family or returning to study, are more planned events that can impact on your ability to repay your loan. You should think about these factors before you apply for a Queensland Housing Finance Loan.

Should you have problems making loan repayments, contact the department immediately on 1300 654 322. Depending on your circumstances, we may be able to help. You should also talk with an independent financial adviser.

You should gather as much information as possible and seek independent financial and legal advice before you make any decisions about home ownership.