First Home Buyer Grants Queensland — Townsville Guide 2026

You're buying your first home in Townsville and you know there's government money available — you've heard the $30,000 figure, you've seen ads for the First Home Guarantee, and someone mentioned stamp duty exemptions. What you haven't got is a clear picture of which schemes apply to your specific situation, how they interact with each other, and what the actual eligibility requirements are rather than the headline versions. Getting this wrong doesn't just mean missing out on money you were entitled to — it can mean making property decisions based on a scheme you weren't actually eligible for.

This guide maps every first home buyer scheme currently available to Townsville buyers, what each one requires, where the restrictions sit, and how to maximise what's available to you before you sign anything.

Why First-Home Buyers Miss Out — And How Much It Costs Them

The most expensive mistake first-home buyers make in Queensland is buying an established home and then discovering the $30,000 FHOG doesn't apply to them. The grant is for new homes only — it has always been. The number of buyers who arrive at their broker or conveyancer having already fallen in love with a 1980s Kirwan brick home, and who then find out the $30,000 was never on the table for that property, happens more regularly than the government's marketing would suggest.

The second expensive mistake is not understanding the residency requirements. The grant isn't free money you can collect and immediately rent the property out. You must move in within 12 months of settlement and live there continuously for at least six months. If your plan is to buy a new home, collect the grant, and then convert it to an investment property before that six-month threshold — the grant becomes repayable in full, with interest.

The third mistake is treating schemes as either-or rather than stackable. A first-home buyer purchasing a new home in Townsville under $700,000 who uses only the FHOG but doesn't apply for the stamp duty exemption or the First Home Guarantee has left real money on the table. These schemes are separate programs administered by different government bodies, and applying for one doesn't automatically enrol you in the others — each requires its own application process.

For Townsville buyers specifically, there's an additional opportunity that many capital-city-focused guides miss: the regional property price cap on the First Home Guarantee ($700,000 in regional Queensland including Townsville) is meaningfully achievable in this market. In Sydney or Melbourne, where the cap for comparable schemes may still leave buyers priced out of most properties, Townsville's median house price comfortably fits within the scheme limits — making the LMI saving genuinely accessible to a much wider range of buyers.

The Full Picture — Every Scheme Available to Townsville Buyers in 2026

Queensland has six schemes and concessions relevant to first home buyers in 2026, administered across three levels of government. They're not mutually exclusive — eligible buyers can stack them. Here's how each one works.

Scheme 1 — Queensland First Home Owner Grant (FHOG)

The FHOG is a one-off, tax-free cash payment from the Queensland Government. Following the 2026–27 Queensland Budget, the $30,000 amount has been confirmed as permanent — it was originally introduced as a temporary measure in November 2023 but will now continue indefinitely for eligible contracts. This is a significant update that most guides written before July 2026 have not yet reflected.

Eligibility Requirements

• Australian citizen or permanent resident (or co-purchasing with one)
• Aged 18 or older
• You and your spouse or partner must not have previously received a FHOG in any state or territory
• You must not have owned residential property you lived in on or after 1 July 2000
• The property must be a new home — not previously occupied or sold as a place of residence. This includes new builds, off-the-plan purchases, substantially renovated homes, and owner-built dwellings
• Property value must be under $750,000 including land and any contract variations
• You must move in within 12 months of settlement and live there continuously for at least six months

What It Doesn't Cover

Established homes — full stop. If the property has been previously occupied or sold as a residence, the FHOG does not apply regardless of the purchase price, the location, or how recently it was built. This is the most common source of buyer confusion in Queensland.

Scheme 2 — Stamp Duty (Transfer Duty) Exemptions

Queensland overhauled its stamp duty concessions for first home buyers on 1 May 2025. The changes are significant and depend on whether you're buying new or established.

New Homes and Vacant Land — Zero Stamp Duty

From 1 May 2025, first home buyers purchasing a new home or vacant land for construction in Queensland pay zero stamp duty. There is no price cap on this exemption — it applies whether the property costs $400,000 or $900,000. For a Townsville buyer purchasing a new home at the median price of approximately $606,000, this exemption saves approximately $17,000–$19,000 compared to what a standard purchaser would pay.

Established Homes — First Home Concession

For established homes, the First Home Concession provides full stamp duty exemption on properties under $700,000 (saving up to approximately $17,350), with a partial concession applying between $700,001 and $800,000. Properties above $800,000 receive no concession. From August 2026, eligibility for stamp duty concessions is restricted to Australian citizens, permanent residents and specified foreign retirees.

Scheme 3 — First Home Guarantee (Federal)

The First Home Guarantee (FHBG) is a federal scheme administered through Housing Australia. It allows eligible first home buyers to purchase with a 5% deposit, with the federal government guaranteeing 15% of the property value — meaning you avoid Lenders Mortgage Insurance (LMI) entirely. LMI on a 95% LVR loan typically costs $10,000–$20,000 depending on loan size, so the saving is meaningful.

Key 2025–2026 Updates

From October 2025, income caps for the First Home Guarantee were removed and the number of available places became unlimited. This is a major change — previously, income caps excluded many higher-earning buyers and places ran out quickly each financial year. From October 2025, any eligible first home buyer can access the scheme without income restriction or competitive allocation.

Eligibility and Price Cap

• Australian citizen or permanent resident
• First home buyer (or someone who hasn't owned property in the last 10 years)
• Aged 18 or older
• Property price cap: $700,000 for regional Queensland including Townsville
• Must intend to live in the property as principal residence
• Applied through approved lenders only — not directly through the government

Scheme 4 — Boost to Buy (Queensland Shared Equity)

Boost to Buy is a Queensland Government shared equity scheme where the state government contributes up to 30% of a new home purchase price (or 25% for an established home), reducing the buyer's mortgage size accordingly. Buyers need only a 2% deposit on properties up to $1,000,000.

Income caps are generous: singles up to $150,000 per year, couples or singles with dependants up to $225,000. The government takes an equity stake in the property proportional to its contribution, which the buyer can buy back over time or repay when the property is sold. This scheme suits buyers whose income is sufficient to service a reduced mortgage but who struggle to accumulate a traditional deposit — it's particularly relevant for Townsville's healthcare and defence workforce.

The scheme is administered through approved lenders. A limited number of regional Queensland places were initially available, with additional places released periodically. Check with a Townsville mortgage broker for current availability.

Scheme 5 — Help to Buy (Federal Shared Equity)

The federal Help to Buy scheme launched in 2025 and mirrors the structure of Boost to Buy at the federal level. The federal government contributes up to 40% of a new home (30% for established homes), with buyers needing a 2% minimum deposit. Income caps apply ($90,000 for singles, $120,000 for couples). The scheme is available to first home buyers and previous owners who no longer have property. It's available through approved lenders and is being rolled out progressively.

Stacking the Schemes — What's Possible for Townsville Buyers

The most powerful outcome comes from combining eligible schemes simultaneously. Here's a worked example for a Townsville first home buyer purchasing a new home:

Each scheme has separate eligibility requirements and application processes. Meeting the criteria for one doesn't guarantee eligibility for the others. The most efficient way to confirm which combination applies to your specific situation is to engage a licensed Townsville mortgage broker who regularly handles first home buyer transactions — they will identify which schemes apply, coordinate the applications, and ensure the timing aligns correctly with your purchase.

Common Disqualifiers — What Removes Your Eligibility

• Previously received a FHOG — in any state or territory, ever. This disqualifies you and your spouse from the Queensland FHOG regardless of how long ago it was.
• Previously owned residential property you lived in — on or after 1 July 2000. Investment properties you never lived in may not disqualify you for the FHOG, but check the specific rules with the Queensland Revenue Office for your situation.
• Purchasing an established home — the FHOG and the new home stamp duty exemption both require a new dwelling. An established home may still be eligible for the First Home Concession on stamp duty but not the grant.
• Property over $750,000 — the FHOG has a hard cap at $750,000 total property value including land and contract variations. There is no cap on the new home stamp duty exemption, but the FHOG and FHBG both have limits.
• Not intending to live in the property — all schemes require you to occupy the property as your principal place of residence. Buying as an investment without living there first makes you ineligible for all first home buyer schemes.

The Settlement Gap — Planning Ahead

First home buyers in Townsville who are renting while saving their deposit often face a practical challenge when their purchase settles: they may be moving out of a rental before the new home is ready, or they may be bridging a gap between lease end and settlement date. During this window, belongings often need somewhere to go. French Street Self Storage in Pimlico offers units from 18sqm on a flexible 3-month minimum term — useful for the transition period that many first home buyers in Townsville navigate as part of their purchase. Our broader Townsville home loans guide covers the full lending picture for North Queensland buyers including the postcode and cyclone zone considerations that affect approval.

Frequently Asked Questions