Queensland’s New 2% Deposit Home Loan Scheme

A Big Step for First-Time Buyers

Queenslanders trying to break into the property market now have a new leg-up. The state government has announced a game-changing 2% home loan scheme allowing eligible first-home buyers to purchase a property with as little as a 2% deposit – a move aimed at easing one of the biggest hurdles in home ownership: saving for a deposit.

This new shared equity program, called Boost to Buy, launches from July 2025 and is set to benefit around 1,000 first-home buyers in its initial rollout. For those who’ve been staring down the barrel of six-figure deposit requirements, this scheme could mean finally swapping renting for owning.

How It Works

Boost to Buy allows the Queensland Government to contribute up to 25% of the property price for an existing home—or 30% for a new build—in return for an ownership stake in the property. Buyers are required to contribute a minimum 2% deposit and take out a home loan for the remainder.

For example, on a $500,000 property:

• A 2% deposit = $10,000

• Government contributes up to 25% = $125,000

• Buyer takes out a loan for the remaining $365,000

This significantly reduces the size of the mortgage and usually eliminates the need for Lenders Mortgage Insurance (LMI), which can add tens of thousands in costs when deposits are below 20%.

Who’s Eligible?

To apply for the scheme, buyers must:

• Be first-home buyers purchasing in Queensland

• Have a household income under $150,000 for singles or $225,000 for couples

• Be purchasing a property valued up to $1 million

• Live in the home as their principal place of residence

The government’s stake in the property is repaid when the buyer sells or refinances, or they can choose to buy back that share over time.

Why It Matters

Saving a home deposit has become increasingly out of reach for many Queenslanders. With Brisbane’s median house price now hovering around $1 million, a traditional 20% deposit sits at an eye-watering $200,000. Even a 10% deposit demands around $100,000 upfront—more than many young professionals earn in a year.

This has led to many buyers relying on financial help from parents, delaying buying altogether, or getting stuck renting indefinitely.

By lowering the entry point to just 2%, Boost to Buy gives more people a chance to buy sooner, with less financial strain. And with the government sharing the risk, it also brings the dream of owning a home within reach for those who might have thought it was off the table.

How It Stacks Up Against Other Schemes

This isn’t the first initiative aimed at helping first-home buyers, but it is one of the more generous in terms of upfront affordability. Unlike the federal First Home Guarantee, which allows 5% deposits but still requires buyers to borrow the remaining 95%, Boost to Buy actually chips in a portion of the purchase price.

And while the federal Help to Buy scheme (launching later this year) will also offer shared equity arrangements, Boost to Buy has higher income caps and a larger property price limit for Queenslanders.

There are also other benefits Queensland buyers can stack on top:

• The First Home Owner Grant of $30,000 for new builds

• Stamp duty concessions for homes under $700,000 (with discounts up to $800,000)

• No LMI, thanks to the lower loan-to-value ratio

In some cases, these incentives combined could mean buyers need only a modest amount of savings to secure a property.

The Bigger Picture: Affordability and Supply

While the scheme will provide welcome relief for 1,000 lucky applicants, it won’t solve Queensland’s broader housing affordability crisis. Property prices continue to rise faster than wages, and housing supply isn’t keeping up with demand. Without more homes being built, schemes that boost demand may put additional pressure on prices—especially in already competitive areas.

Still, Boost to Buy is a practical step toward making home ownership more accessible for everyday Queenslanders. It gives renters, young families, and middle-income earners a foot in the door—and a shot at long-term financial security.

Final Thoughts

The 2% home loan scheme is a bold and timely move that could help thousands of Queenslanders fast-track their path to home ownership. While it won’t fix everything, it does offer a genuine alternative to the years-long grind of saving a traditional deposit.

With the scheme launching on 1 July, eligible buyers should start getting their finances in order now—because demand is likely to be strong, and places limited. If you’ve been sitting on the fence or feeling priced out of the market, this might just be the opportunity you’ve been waiting for.