By Chaice Paterson, CEO & Founder, Low Deposit Homes | Updated June 2026
The single biggest decision a Queensland first home buyer makes in 2026 is metro vs regional — and the financial implications are larger than most realise. Under the Federal 5% Deposit Scheme, metropolitan Queensland (Brisbane, Gold Coast, Sunshine Coast, Beaudesert, including Ipswich and Logan) has a $1,000,000 property cap. Other QLD regional areas (including Toowoomba) have a $700,000 property cap. This $300,000 difference shapes which homes are accessible. Ipswich and Logan are classified as METRO (not regional) under the scheme — a common misconception. Here’s the complete map of where to buy and why.
What counts as “metro” vs “regional” in Queensland under the 5% Scheme?
Housing Australia (which administers the 5% Deposit Scheme) defines “capital city” zones using ABS Statistical Area boundaries — and the definition isn’t always intuitive.
METRO (capital city zone — $1M cap):
- Brisbane LGA (City of Brisbane)
- Gold Coast LGA
- Sunshine Coast LGA
- Ipswich LGA (yes — Ipswich is metro)
- Logan LGA (yes — Logan is metro)
- Moreton Bay Regional Council
- Redland City
- Scenic Rim (including Beaudesert)
REGIONAL (other QLD — $700K cap):
- Toowoomba LGA
- Lockyer Valley / Gatton
- Bundaberg
- Mackay
- Townsville
- Cairns
- Rockhampton
- Hervey Bay
The most common misconception: people assume “Toowoomba is regional therefore Ipswich is regional.” Toowoomba IS regional. Ipswich is NOT. This $300K cap difference matters enormously.
How does the property cap affect what I can buy?
For a couple earning $170,000 with borrowing capacity around $900K–$1M:
Metro corridor (Ipswich, Logan, North Brisbane): Can target packages up to $1,000,000. Plenty of options at $850K-$1M range. Borrowing capacity and the scheme cap intersect close to the same point.
Regional corridor (Toowoomba): Limited to $700K. Most Toowoomba new house and land packages sit at $750K-$850K — meaning the 5% Deposit Scheme typically doesn’t apply for available stock. Only stamp duty exemption + FHOG (sub-$750K, with limited stock) remain available. Effectively much higher cash on hand required because the LMI saving from the 5% Scheme is off the table.
This is why corridor choice in Queensland is so consequential for first home buyers — getting it wrong can mean paying significant LMI (if you go above the cap) or hunting for stock that doesn’t really exist (sub-$700K Toowoomba is genuinely not available in current new build pipeline).
What’s the price-by-corridor reality in 2026?
Indicative pricing for typical 3-4 bedroom new house and land packages:
| Corridor | Price range | 5% Scheme applies? |
|---|---|---|
| Brisbane CBD/inner ring | $1.2M+ | No (above $1M cap) |
| Brisbane outer suburbs | $900K-$1.1M | Yes when under $1M |
| Ipswich (Ripley, Springfield) | $850K-$1M | Yes |
| Ipswich (Walloon, Collingwood Park, Rosewood) | $850K-$980K | Yes |
| Logan (Logan Reserve, Yarrabilba) | $850K-$1M | Yes |
| Logan (Flagstone, Park Ridge) | $800K-$950K | Yes |
| North Brisbane (Caboolture, Morayfield, Narangba) | $800K-$950K | Yes |
| Beaudesert | $850K+ | Yes when under $1M |
| Gold Coast (Coomera, Pimpama) | $900K-$1.1M | Yes when under $1M |
| Sunshine Coast | $950K-$1.2M | Mostly no |
| Toowoomba (Highfields, Cotswold Hills) | $750K-$850K | Usually no (above $700K regional cap) |
What are the lifestyle trade-offs by corridor?
Brisbane outer suburbs: closest to CBD jobs and amenities. Higher density. Smaller blocks. Established schools, shopping, transport.
Ipswich (Ripley, Springfield): rapid growth corridor. Springfield rail line direct to CBD. Major infrastructure investment. Newer estates, larger blocks than inner Brisbane. 45-60 min CBD commute.
Logan (Yarrabilba, Logan Reserve, Flagstone): mid-position between Brisbane and Gold Coast. Dual-direction commute possible. Bushland character. Slightly more affordable than equivalent Ipswich.
North Brisbane (Caboolture, Morayfield, Burpengary): Sunshine Coast and bay proximity. Caboolture rail line. Bruce Highway commute. Established estates and infrastructure.
Beaudesert: country town character. Larger lots (500-800m²). Strong community feel. Trade-off: longer commute to Brisbane CBD (60-75 min).
Toowoomba: cooler climate (elevation 700m). Established city of 130,000+. Strong employment in agriculture, education, health. Trade-off: 90+ min commute to Brisbane.
Gold Coast: beach lifestyle. Tourism economy. Higher land costs. M1 commute to Brisbane CBD 75-90 min.
What about commute considerations?
For first home buyers commuting to Brisbane CBD:
| Corridor | Train option | Drive time (peak) |
|---|---|---|
| Ipswich (Springfield) | Springfield line | 45-55 min |
| Ipswich (Ripley) | Springfield line + drive | 60-70 min |
| Logan (Yarrabilba) | No direct rail | 60-75 min |
| Logan (Logan Reserve) | Loganlea station nearby | 55-65 min |
| North Brisbane (Caboolture) | Caboolture line | 55-70 min |
| Gold Coast (Coomera) | Gold Coast line | 80-95 min |
| Beaudesert | No rail | 70-85 min |
| Toowoomba | No rail to Brisbane | 90+ min |
Hybrid work has reduced the importance of daily CBD commute for many buyers. Those who only commute 2-3 days/week often optimise for larger blocks/better community over shortest commute.
Where is LDH seeing the most activity in 2026?
Based on actual client pipeline:
Highest volume corridors: Ipswich (Ripley, Springfield, Walloon), Logan (Logan Reserve, Yarrabilba), Beaudesert, North Brisbane (Caboolture, Morayfield).
Strongest growth potential identified: Ipswich (continued infrastructure investment), Beaudesert (limited new supply), Logan Reserve (premium estate in growth corridor).
Stock challenges: Sunshine Coast (most packages above $1M cap), Gold Coast inner (similar issue), inner Brisbane (well above scheme cap).
“I tell first home buyers to think 5 years out, not 5 months out. Where will your job be? Where will the schools matter? Where will community develop? The cheapest corridor today isn’t always the best long-term decision. But equally — getting in now beats waiting another 3 years to save more deposit you don’t actually need.” — Chaice Paterson, founder of Low Deposit Homes
Frequently Asked Questions
Q: I work in Toowoomba but want the 5% Scheme — what are my options? The practical reality is that available Toowoomba new build stock typically sits above the $700K regional cap, so the 5% Scheme rarely applies. Two paths work: buy in metro corridors (Ipswich is the closest metro corridor — about 75-minute drive) and commute, or use Help to Buy (which has the same property caps but reduces your loan size dramatically through the government equity share, making the higher-priced Toowoomba stock more accessible if you meet the income cap).
Q: Is the property cap by suburb or by LGA? By LGA (Local Government Area). All addresses within the metro LGAs qualify for the $1M cap. All addresses outside qualify for the $700K cap.
Q: Will the property caps increase? The caps were last reviewed in October 2025 (income caps removed, place caps removed). Property caps remained at current levels. No announced changes for 2026. Watch the Housing Australia website for updates.
Q: Can I buy in regional Queensland with the Help to Buy scheme instead? Help to Buy property caps are the same as 5% Deposit Scheme caps. Regional QLD (including Toowoomba) is $700K. So Help to Buy doesn’t expand your options for regional purchases — but it does dramatically reduce the deposit required if you qualify on income.
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Low Deposit Homes operates under Winning Homes Australia Pty Ltd (ACN 633 321 758). All calculations are indicative. Individual circumstances may vary. This is not financial advice.