Building in Mackay under $750k and the $30,000 grant

Published 22 October 2026 · Reviewed by Luke Curtis, Director & head broker

Building a new home is the main way first home buyers in Mackay can access the $30,000 Queensland First Home Owner Grant. The median house price in the Mackay local government area was $725,000 in the first half of 2026, according to Opteon. That makes the grant's $750,000 limit tight, and the way the value is measured matters.

How the $750,000 test works for a build

The grant is for eligible first home buyers buying or building a new home valued under $750,000, including the land. For a building contract, the Queensland Revenue Office measures the value as the building contract price plus the value of the land. Contract variations count too.

Illustrative only. Round numbers, not a real build:

Land: $250,000
Building contract: $480,000
Total: $730,000, which is under $750,000

Now add $25,000 of variations for upgraded kitchen benches, extra concrete and a bigger patio. The total becomes $755,000, which is over the limit, and the grant may no longer apply. Lock in your inclusions before you sign and keep a close eye on variations.

Other grant conditions to know

The building contract must be comprehensive, with the builder covering the work from laying the foundations through to the home being ready to live in.
You need to move in as your principal place of residence within one year of completion and live there for six months in a row.
The 2026–27 Queensland Budget continued the $30,000 grant for eligible contracts signed from 1 July 2026 and committed it for four years.

Transfer duty on the land

Eligible first home buyers pay no transfer duty on vacant land to build a home, or on a new home, for contracts dated from 1 May 2025. There's no value cap. From 1 August 2026, Queensland's home, first home and vacant land concessions are generally limited to Australian citizens, permanent residents and specified foreign retirees.

How a construction loan works

A construction loan pays out in stages instead of in one lump sum:

The land settles first, funded by your deposit and the first part of the loan.
The builder invoices at set stages through the build, usually including the base or slab, frame, lock-up, fixing and practical completion.
The lender pays each stage, often after checking that the work is done.
Many construction loans charge interest only on the amount drawn so far, so repayments grow as the build progresses.

The lender usually has the land and the plans valued before it lends. If you're renting while you build, you'll need to budget for rent and loan repayments at the same time.

When the grant is paid

The Queensland Revenue Office says the grant is paid at different times depending on how you apply and whether you're building or buying. If you apply directly to the Revenue Office, it isn't paid until the home is complete. Applying through an approved agent, which is a bank or lending institution, is the fastest way to receive it. The Revenue Office also says not to rely on the grant as your deposit, because timing varies.

The 5% Deposit Scheme and Boost to Buy

The 5% Deposit Scheme lets eligible first home buyers buy with a 5% deposit without lenders mortgage insurance, through a participating lender. It can be used to build on vacant land. For a land and build, the combined land price and build cost must stay under the price cap, which is $700,000 in Mackay. The scheme's guide also says you'll need to finish building within 36 months of loan settlement.

That means a $730,000 house and land package may still get the grant, but it won't fit the 5% Deposit Scheme in Mackay.

Boost to Buy, Queensland's shared equity scheme, may take up to 30% equity in a new home with a minimum 2% deposit. Income caps apply, the price cap is $1,000,000 and places are limited.

A build checklist

Get a conditional pre-approval for a construction loan before you sign the land or building contract.
Ask the builder exactly what's included. Driveways, fencing, landscaping and window coverings are often extras.
Keep a buffer for variations and site costs, and remember the grant's value test includes variations.
Check that the building contract is comprehensive, through to the home being ready to live in.
Plan your cash flow for rent and loan repayments during the build.

Our construction loans page has more on how we structure builds, and our first home buyers page covers all the Queensland and federal help.

Talk it through

Send us the land price and the builder's quote and we'll check how it sits against the grant and scheme limits. Call or text 0458 773 002, or book a free assessment. For most home loans there's no broker fee; any fee is disclosed upfront in our Credit Guide.

Common questions

Does the $750,000 grant limit include the land?

Yes. For a build, the value is the building contract price plus the land value, and contract variations count too.

Do I pay stamp duty on land to build my first home in Queensland?

Eligible first home buyers pay no transfer duty on vacant land to build a home, for contracts dated from 1 May 2025, with no value cap.

Can I use the 5% Deposit Scheme for a house and land build in Mackay?

It can be used to build on vacant land, but the combined land and build cost must be under the $700,000 Mackay price cap.

When is the first home grant paid on a build?

It depends on how you apply. Applying directly to the Queensland Revenue Office means waiting until the home is complete, while applying through an approved agent such as your lender is the fastest way.

Sources

This guide is general information only and doesn't take into account your objectives, financial situation or needs. Talk to us about your circumstances before acting on it. Related: Construction loans.

Building in Mackay: house and land under $750,000 and the $30,000 grant

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