5% Deposit Scheme for First Home Buyers in Queensland
Federal Home Guarantee — Buy in Gladstone with 5% Deposit, No LMI, Full Ownership. Single Parents: Just 2%.
Skip the 20% Deposit. Skip the LMI.
The federal government’s First Home Guarantee lets eligible first home buyers purchase with as little as a 5% deposit. The government guarantees up to 15% of the loan value to the lender, so you avoid Lenders Mortgage Insurance entirely. Unlike Queensland’s Boost to Buy shared equity scheme, this is not a co-ownership arrangement — you own 100% of your property from day one and owe the government nothing.
As your mortgage broker in Gladstone, Coral will assess which guarantee suits your situation and connect you with the right participating lender.
Single Parent? You May Only Need a 2% Deposit
The federal government’s Family Home Guarantee is a separate track within the same scheme designed specifically for single parents and single legal guardians raising at least one dependent child. Instead of 5%, you only need a 2% deposit — and the government guarantees up to 18% of your loan value so you still pay no LMI.
Importantly, this is not a shared equity arrangement. The government does not take a stake in your home. You own 100% of the property, and the guarantee simply removes the LMI cost. It is also open to previous homeowners who do not currently own property — not just first home buyers.
Key eligibility: You must be legally single (no spouse or de facto partner), have at least one dependent child living with you, be an Australian citizen or permanent resident, and not own any other property at settlement. The loan must be in your name only, and the property must be owner-occupied. Speak to Coral about whether you qualify before approaching a participating lender.
Key Difference from the $30,000 FHOG Grant
The $30,000 First Home Owner Grant is a cash payment for new builds only. This scheme is completely separate and applies to both new and established properties. For most Gladstone buyers purchasing existing homes, the 5% Deposit Scheme is the more relevant starting point.
Income caps were removed in October 2025. If you previously checked and were over the threshold, check again — both guarantees now have no income limit.
How the Schemes Compare
$30,000 FHOG →
Cash grant for new builds only. Never repaid. Property must be under $750k. Expires June 2026.
5% Deposit Scheme (Federal)
First home buyers: 5% deposit, govt guarantees 15%. Single parents: 2% deposit, govt guarantees 18%. No LMI, no shared equity.
Boost to Buy (2%) →
QLD Government co-owns up to 25% of your home. Only 2% deposit needed. Government equity must be repaid on sale.
Eligibility at a Glance
All criteria must be met at the time of application. Coral will confirm your eligibility as part of your first home buyer consultation in Gladstone.
First Home Buyer Guarantee
Family Home Guarantee (Single Parents)
Property Requirements (Both Guarantees)
Coral is a Commissioner for Declarations (Cdec) — Gladstone
Several documents in your home loan application require witnessing or certification by an authorised person. As a Commissioner for Declarations, Coral can witness statutory declarations and certify document copies during your first home buyer appointment in Gladstone. No separate JP trip needed.
Document Checklist Progress
0 of 16 items completed (0%)
Identity and Citizenship Documents
Income and Employment Documents
Savings and Deposit Evidence
Existing Debts and Liabilities
Property Documents
Things to Know Before You Apply
Apply through a participating lender: Both guarantees run through Housing Australia via approved lenders. Coral will identify which participating lenders suit your situation and credit profile.
Single parents — places are limited: The Family Home Guarantee has 5,000 places for FY2025–26. The First Home Guarantee now has unlimited places. If you are a single parent, move early rather than waiting until you have found a property.
Genuine savings matter: A pattern of regular saving over 3 to 6 months is far stronger than a recent lump sum. Do not move funds around just before applying.
Stacking with the FHOG: If you are building new, you may be eligible for both a guarantee and the $30,000 First Home Owner Grant simultaneously.
No income caps since October 2025: Both guarantees previously had income thresholds. Those restrictions are now gone entirely.
Common Issues That Can Derail Applications
Irregular savings pattern raising lender concerns • Credit card limits reducing borrowing capacity • Not using a participating lender • Property price above the regional cap • Attempting to restructure finances to appear eligible • Undisclosed debts • Insufficient employment history • Single parents: separated but not yet legally divorced (you must be legally single at the home loan date) • Single parents: joint loan applicants (loan must be in your name only)
Related Pages for Gladstone First Home Buyers
Not Sure Which Scheme Suits You?
Coral works with first home buyers across Gladstone seven days a week — including single parents navigating the Family Home Guarantee. She will assess your full picture, identify every scheme you qualify for, and connect you with the right lender. No office visit required.
Call Coral: 0409 311 985This page provides general information only and does not constitute financial advice. The Family Home Guarantee and First Home Guarantee are administered by Housing Australia. Scheme eligibility criteria, property price caps, available places, and lender requirements are subject to change. Always confirm current details at housingaustralia.gov.au or with an accredited mortgage broker before making any decisions. Lending criteria apply and approval is not guaranteed.
