Interest rate cut + Boost to Buy: Good news for First Home Buyers

Cash-strapped mortgage holders and first home buyers just received a welcome double boost.

With today’s rate cut and the recent launch of the Boost to Buy scheme, Queensland first home buyers could find it a little easier to enter the property market. The Queensland Government’s new Boost to Buy program - a shared equity initiative designed to reduce the deposit hurdle - arrives just as the Reserve Bank of Australia (RBA) cuts the official cash rate to 3.60%, its lowest level in two-and-a-half years.

For first home buyers, this rare combination means smaller deposits, lower repayments, and a faster path to home ownership.

What is the Boost to Buy Scheme?

The Boost to Buy scheme helps first home buyers by letting the Queensland Government co-own a portion of the property with you, reducing the deposit you need and the amount you have to borrow.

Government contribution:

• Up to 30% of the purchase price for new builds.
• Up to 25% for existing homes.

Buyer deposit:

• Just 2% of the property price.

Repayment:

• You can buy back the government’s share over time or when you sell.

Example:
On a $800,000 new build, the government could contribute up to $240,000. You’d need roughly $16,000 as a deposit (2%), and your mortgage would cover the rest.

Who can apply for Boost to Buy?

Property price cap:

• Up to $1 million in Brisbane and regional centres

Income caps:

• Individuals earning $150,000 or less
• Couples earning $225,000 combined or less

These income thresholds are more generous than the Federal Help to Buy program.

Boost to Buy vs Federal Help to Buy

The first interest rate cut since April 2023

After today's August meeting, the RBA announced a 25 basis point cut, lowering the official cash rate from 3.85% to 3.60% - the lowest in two-and-a-half years.

Why this matters:

• This is the third cut in 2025 (after February and May) but the first since rates were held steady in July.
• The RBA says falling inflation and easing labour market conditions made the cut “appropriate.”
• In total, the cash rate has dropped 75 basis points since the start of the year.

How much could you save?

If lenders pass on the cut in full:

• $500,000 mortgage: save around $2,884 per year
• $1 million mortgage: save around $5,768 per year

Why this is good news for First Home Buyers

With lower interest rates and government deposit support:

• Borrowing costs drop, making repayments slightly more manageable.
• Smaller deposits mean you can get into the market sooner.
• More buyers may qualify for finance with the reduced mortgage size.

For first home buyers on the edge of affordability, this could be the push needed to secure a home before prices move again.

Other First Home Buyer support in Queensland

The First Home Owner Grant (FHOG) continues:

• $30,000 grant for eligible first home buyers.
• Applies to new builds or major renovations.
• Price cap: $750,000.

When can you apply?

• Boost to Buy registrations are already open.
• Limited to around 1,000 places per year.

For Queensland first home buyers, the timing couldn’t be better.

The Boost to Buy scheme makes saving for a deposit easier, while the first rate cut since April 2023 reduces borrowing costs. Together, they can shorten the time it takes to buy your first home and make repayments more affordable.

📅 Book a discovery session with our team today to see how you could take advantage of these changes and start building your future sooner.

Disclaimer: Eligibility for government grants, schemes, and stamp duty exemptions is subject to individual circumstances and official criteria. AUSMAR does not provide financial advice. We recommend speaking with a licensed broker or financial adviser to confirm your eligibility. Information is correct at time of publication but may be subject to change without notice.