A duplex can suit a first home buyer, but the loan, the title and the government concessions all work differently from a standard house purchase. Check these points before you make an offer, because they affect both your borrowing and your costs.
This article is for first home buyers in Sherwood and nearby Brisbane suburbs who are weighing up a duplex, either to live in one side and rent the other, or simply to own a home with a different layout.
Do Not Assume the Title Type Does Not Matter
The title type should be confirmed before you sign. A duplex is one building with two dwellings, and if it has been subdivided into two separate titles, each home can be sold on its own. If it sits on a single title, you are buying both dwellings as one property.
Lenders have their own policies on title type. Ask your broker to check the title before you make an offer, so the home loan options you explore are the ones that fit the property you are actually buying. A conveyancer should also confirm the title details in the contract.
Does a Duplex Qualify for First Home Buyer Stamp Duty Concessions?
It can, but the outcome depends on whether the duplex is new or established, and on your own circumstances. Queensland has separate concessions for each, so the first question is whether anyone has lived in the duplex before.
For a new home, Queensland offers a full duty concession for eligible first home buyers, with no upper property value cap, for contracts dated 1 May 2025 or later. For an established home, there is no duty up to and including $700,000 and a partial concession under $800,000.
The first home owner grants (FHOG) work differently again. The grant applies only to new homes valued under $750,000 including land. Duplexes are among the property types listed as eligible when they are newly built. A grant or concession can still be refused if you or your spouse have owned residential property before, so first home buyer eligibility needs checking for each scheme separately.
Two more points apply. For transactions from 1 August 2026, each buyer must be an Australian citizen, permanent resident or specified foreign retiree. Also, concessions carry move-in conditions, and the grant and duty concessions have separate occupancy and disposal rules. If you plan to rent out the second dwelling, ask the Queensland Revenue Office how your use of the property affects the concession before you exchange contracts.
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How Rental Income From the Second Side Affects Your Borrowing
Rental income from the second dwelling can help your cash flow, but each lender sets its own assessment policy, so a broker can confirm how it will be treated. Test this early with a borrowing capacity assessment rather than assuming the rent will be counted in full.
Consider a buyer who borrows $600,000 over 30 years. At the illustrative rate of 6.75% p.a., principal and interest repayments come to roughly $3,892 a month. The buyer plans to live in one side and rent out the other, and assumes an illustrative rent of $550 a week, or about $2,383 a month. On those figures, the loan cost left for the buyer to cover is around $1,509 a month, before council rates, insurance, repairs and any time the second side sits empty.
The buyer's broker then confirms with each lender how it assesses the rent when assessing the application. The outcome is a loan sized to what the lender will actually assess, with the buyer aware that a vacant month means covering the whole repayment alone.
Rental income is also taxable, so speak with your accountant about how it affects you. These figures are an illustration only and not a quote. Your lender and rate will differ, so use a repayment calculator with your own numbers.
Deposit Size, LMI and Offset Account Choices
A smaller deposit usually means Lenders Mortgage Insurance (LMI) may apply, which adds to your upfront cost. Whether it does, and how much it costs, depends on your deposit size, the lender and the property.
Some first home buyers use a 5% deposit through a government-backed scheme, and these schemes have their own price caps and eligibility rules. Confirm the cap for Brisbane against the current scheme details before you commit to a duplex, because a higher-priced duplex may fall outside it.
If you keep a larger cash buffer for vacancy periods, an offset account can reduce the interest charged on your loan while keeping the money accessible. Some lenders charge a higher rate or a package fee for loans with an offset account, so check the product details. A pre-approval also lets you shop with a clear borrowing limit, though it is not a final approval and the property must still satisfy the lender.
Our first home buyers page explains how we approach these decisions, and our Sherwood team can look at your situation in person.
If a duplex is on your shortlist, speak with us before you sign anything. Call one of our team or book an appointment at a time that works for you, and we will check the title, the concessions and the loan structure with you.
Frequently Asked Questions
Can a first home buyer in Queensland get the first home owner grant on a duplex?
Only if the duplex is newly built and meets the grant's value cap and other conditions. The grant does not apply to established homes. Check your eligibility with the Queensland Revenue Office.
Do first home buyers pay stamp duty on a duplex in Queensland?
It depends on whether the duplex is new or established. Queensland has different concessions for each, and your eligibility is assessed against the specific criteria. Confirm the details with the Queensland Revenue Office or your conveyancer.
Will a lender count the rent from the second side of a duplex?
Each lender sets its own policy on assessing rental income. A broker can confirm how each lender assesses it before you apply.
Does a duplex need a larger deposit than a house?
Not necessarily, but the deposit size affects whether Lenders Mortgage Insurance applies. This varies by lender and property, so ask your broker early.
