Queensland State Housing Loan
Cost of the Queensland State Housing Loan
How much deposit do I need?
The minimum deposit required is 5% of the purchase price of your home ($5,000 for a $100,000 house). However, you may be eligible for a non-repayable deposit assistance grant for up to 50% of this amount.
Telephone the Loan Information Line for the cost of a local call on 1300 654 322 for an assessment.
What other costs will I have?
In addition to your deposit, there may be other costs including conveyancing, stamp duty, rates adjustment and the department may charge for application and administration fees. You should ask your solicitor for an estimate of these costs based upon your particular circumstances, as they do vary depending upon the purchase price and location of the house, and other factors.
If you are a Department of Housing tenant, waitlist applicant or eligible to be on the waitlist, loan application fees will be waived.
All applicants will receive $100 towards the cost of independent financial advice.
Other assistance for approved applicants:
- Department of Housing tenants purchasing their current rental property will receive recognition for increases in property value as a result of any council and departmental approved improvements they have made to the property.
- There is no requirement for Mortgage Insurance. Normal householder's building insurance will be required.
How much would my repayments be?
Your initial monthly loan repayments will be a maximum of 26% of your agreed continued income.
Am I allowed other debts?
We prefer you have no other debts when you apply for the Queensland State Housing Loan. However, depending on your deposit and income, some limited other debts may be allowed.
As your Queensland State Housing Loan repayments may begin to increase in the sixth year of the loan, other debts may cause you financial hardship.
How long will it take to repay my loan?
This depends on the amount you borrow, interest rates and your level of repayments. If you borrow to your maximum capacity and interest rates stay steady, you will repay your Queensland State Housing Loan in approximately 25 years.
What legal documents will I have to sign?
When you have been approved for a Queensland State Housing Loan to purchase a home, you will have to sign the following documents:
- The contract to buy your home. This is a contract on terms acceptable to the seller, which is subject to a number of conditions that you should carefully consider.
- Loan agreement and mortgage. These are signed after finance has been approved and after you have received independent financial advice. (You can ask for copies of these documents when you apply for a loan.)
- Transfer documents prepared by your solicitor as part of the conveyance of the property from the department to you.
We strongly recommend you obtain legal advice from your solicitor PRIOR TO signing any contract, mortgage or loan agreement.
Last updated 09 April 2008
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