First Home Guarantee Scheme in East Brisbane, QLD: The 2026 Guide

In 2026, the First Home Guarantee is one of the most powerful tools available to first home buyers in East Brisbane, QLD. A 5% deposit, no lenders mortgage insurance (LMI), and a government guarantee covering the remaining 15% - it removes two of the biggest barriers to getting into the market at the same time.

What changed most recently is the income cap removal. As of October 2025, there is no longer an income threshold to qualify, which means buyers across East Brisbane - Woolloongabba, Kangaroo Point and Morningside - who were previously ruled out on income grounds can now access the scheme. The price cap for East Brisbane suburbs sits at $1,000,000, which covers unit entry points across the area comfortably.

AE Finance Solutions helps first home buyers across East Brisbane, QLD access the First Home Guarantee and compare first home loans across 60+ lenders - completely free of charge.

Here's what you need to know about how the scheme works, what it means for your deposit, and how to give your application the best chance of approval.

What does the First Home Guarantee actually mean for your deposit?

Without the scheme, buying with a 5% deposit triggers LMI - a one-off cost that protects the lender, not the borrower, if repayments stop. On an $800,000 purchase with a 5% deposit, that LMI cost is approximately $27,000. On a $1,000,000 purchase at the same deposit level, it rises to approximately $41,500. The First Home Guarantee removes that cost entirely by having the government guarantee up to 15% of your purchase price on the lender's behalf.

In practice, that means you buy with 5% down and the lender treats it as though you have a 20% deposit - no LMI, no waiting years to save more. For buyers looking at units in suburbs like Woolloongabba or Kangaroo Point , where medians sit at $752,500 and $815,000 respectively, the savings are immediate and significant.

What is the First Home Guarantee and how does it work in East Brisbane, QLD?

The First Home Guarantee is a federal government scheme that lets eligible first home buyers purchase with a 5% deposit and no LMI. The government guarantees up to 15% of the purchase price through Housing Australia, which means the lender's risk is covered without the buyer paying an insurance premium. In East Brisbane, QLD, all suburbs fall within the $1,000,000 price cap, so the scheme applies to most unit purchases and some house purchases depending on the suburb. Your lender must be on the approved panel - which is exactly what we check across our 60+ lender panel before recommending any loan structure.

What schemes and grants can first home buyers in East Brisbane, QLD access alongside the First Home Guarantee?

• First Home Guarantee (FHBG): 5% deposit, no LMI, government guarantees up to 15%. Price cap $1,000,000 in East Brisbane. No income cap as of October 2025. New and established homes are both eligible.
• Queensland First Home Owner Grant (FHOG):$30,000 cash grant for new homes purchased before 30 June 2026, reducing to $15,000 from 1 July 2026. Price cap under $750,000. New builds only - established homes are not eligible.
• Queensland Transfer Duty Exemption (new homes):$0 stamp duty on new home purchases from 1 May 2025 - no price cap applies. For established homes up to $700,000, the full exemption also applies. Partial concession available between $700,001 and $800,000.
• Queensland Boost to Buy (shared equity): 2% minimum deposit with the state government taking up to 30% equity in a new build (25% in established). Price cap $1,000,000, income cap $150,000 single / $225,000 household. Limited places - 500 in Round 2. Approved lender panel is restricted.
• Family Home Guarantee (FHG): For single parents only. 2% deposit, government guarantees up to 18%. Does not require first home buyer status. Must be genuinely single - separated-not-divorced and de facto arrangements do not qualify. Price cap $1,000,000 in East Brisbane.
• Pre-approval before you search: Getting pre-approved before you start inspecting gives you certainty on your budget and confirms your scheme eligibility before you make an offer.

How do mortgage brokers help first home buyers access the First Home Guarantee in East Brisbane, QLD?

Step 1: Talk to us

Get in touch and we'll confirm whether you meet the eligibility criteria for the First Home Guarantee - including residency status, first home buyer status, and intended use of the property as your principal place of residence.

Step 2: Assess your deposit and borrowing position

We look at your full financial picture - income, savings, existing debts, and expenses. We confirm whether your 5% deposit is genuinely saved (not fully gifted) and how your borrowing capacity looks across different lenders on our panel.

Step 3: Identify the right lender from the approved panel

Not every lender participates in the First Home Guarantee. We compare the approved lenders across our 60+ panel - looking at rates, fees, and how each lender assesses your specific income type - to identify who gives you the strongest result.

Step 4: Combine your schemes for maximum benefit

We check whether you can stack the First Home Guarantee with the Queensland FHOG and the transfer duty exemption at the same time. For buyers targeting new builds under $750,000, combining all three can add up to significant savings in a single transaction.

Step 5: Submit your application and manage the process

We prepare and submit your application, coordinate with the lender, and manage the approval process from start to finish. We handle the paperwork and keep you updated so there are no surprises before settlement.

Step 6: Support through to settlement and beyond

Our job doesn't end at approval. We liaise with your solicitor or conveyancer, confirm the guarantee is correctly applied at settlement, and remain your first point of contact for any questions that come up on the way through.

What mistakes do first home buyers make with the First Home Guarantee?

The most common mistake is going directly to a bank without checking whether that bank is on the approved lender panel - and then choosing a loan that isn't structured to use the guarantee at all. The scheme has specific eligibility conditions, and a standard bank home loan application won't automatically trigger them. Getting in front of the wrong lender early can delay your purchase by weeks.

The second mistake is assuming the scheme is only for buyers with lower incomes. The income cap was removed in October 2025. If you previously looked at the scheme and ruled yourself out, it's worth revisiting your position. The third mistake - and arguably the most costly - is not checking whether the FHOG and the transfer duty exemption can be stacked on top. For the right property at the right price point, those three benefits together can save a first home buyer tens of thousands of dollars on the day of settlement. Getting in front of a broker before you find the property is what makes that possible.

What does the First Home Guarantee look like in practice for East Brisbane, QLD buyers?

• Unit buyers (Woolloongabba, Kangaroo Point, Morningside): Unit medians in these suburbs sit between $752,500 and $910,000. Many fall within or close to the $1,000,000 price cap. A 5% deposit on a $800,000 unit is $40,000 - and without the guarantee, LMI would add approximately $27,000 on top.
• New build buyers (FHOG eligible): If your new build is under $750,000, you can access the First Home Guarantee (no LMI), the $30,000 FHOG (before 30 June 2026), and $0 transfer duty at the same time. Three benefits, one purchase.
• Established home buyers: The First Home Guarantee applies to established homes - you're still eligible for the $0 transfer duty on properties up to $700,000. The FHOG does not apply to established homes, but the guarantee and duty exemption still represent a strong combined benefit.
• Lender selection still matters: Approved panel lenders vary on rate, fees, and policy. Competitive variable rates as of April 2026 start from approximately 5.08% p.a. - but the rate you're offered depends on your deposit size, income type, and the lender you end up with. This is where broker comparison does the work.

Frequently Asked Questions

Do I need to be a first home buyer to access the First Home Guarantee?

Yes - the First Home Guarantee requires that you have never previously owned property in Australia. If you previously owned a home and are now buying again, you are not eligible, though the Family Home Guarantee for single parents does not have this restriction.

Can I use the First Home Guarantee to buy an investment property?

No. The property must be your principal place of residence - you must intend to move in. Purchasing an investment property through the scheme is not permitted, and buying an investment property before your own home would also affect your eligibility for the FHOG and First Home Guarantee when you do buy to live in.

Is the $1,000,000 price cap enough for East Brisbane suburbs?

For unit purchases across most East Brisbane, QLD suburbs, yes - unit medians range from $750,000 in Stones Corner to $950,000 in Hawthorne, most sitting comfortably within the cap. For houses, the cap is more limiting - medians across the area range from $1,282,000 to $2,300,000, so house buyers may need a higher deposit or a different suburb strategy.

Does the 5% deposit need to be genuinely saved?

Most approved panel lenders require that at least part of the deposit is genuinely saved rather than entirely gifted. The specific rules vary by lender, which is one of the reasons lender selection matters. We clarify the deposit requirements for each lender before recommending one for your situation.

Can I use the First Home Guarantee and the Queensland FHOG at the same time?

Yes, for new builds under $750,000. You can combine the First Home Guarantee (no LMI on a 5% deposit), the $30,000 FHOG (before 30 June 2026, dropping to $15,000 from 1 July), and the $0 transfer duty exemption simultaneously. All three schemes have different eligibility conditions, and we confirm which apply to your specific purchase before you commit.

Should I use a mortgage broker or go directly to a bank for the First Home Guarantee?

A mortgage broker, every time. Not all lenders participate in the scheme, rates and policies differ across the approved panel, and how you structure your application determines whether your scheme eligibility is correctly applied. A broker compares the panel for you at no cost - going directly to one bank means you only see one set of options.

What happens to the government guarantee after I buy?

The government guarantee remains in place until your loan-to-value ratio (LVR) falls below 80% - either through repayments reducing your balance or through property value growth. Once your LVR is below 80%, the guarantee is released automatically and you are not required to pay LMI at any point. The guarantee does not affect your ownership of the property.

Your Next Steps

The First Home Guarantee removes two of the biggest barriers to buying in East Brisbane, QLD at the same time - the deposit hurdle and the LMI cost. Combined with Queensland's FHOG and transfer duty exemption, the right purchase can put you in a substantially better position than saving for years to reach a 20% deposit. The difference across lenders on an approved panel is real, and getting in front of the right one before you start inspecting is what locks in the best outcome.

Ready to find out which lenders give first home buyers the strongest result for your situation? Contact Abel Desta for a free consultation or call 0422 868 524. We'll confirm your scheme eligibility, compare your options across 60+ lenders, and identify the strongest fit for your deposit, income, and goals.

About the Author Abel Desta Mortgage Broker, AE Finance Solutions Abel is a mortgage broker at AE Finance Solutions, helping buyers across Coorparoo, East Brisbane and the surrounding suburbs finance their homes. Abel Desta is a credit representative (467836) of LMG Broker Services Pty Ltd, Australian Credit Licence 517192. Based in Eight Mile Plains, he compares loans across a panel of 60+ lenders, at no cost to the borrower. Meet Abel → LinkedIn

AE Finance Solutions · Eight Mile Plains and East Brisbane, QLD · General information only — this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.