Qld govt extends $10,000 new home grant

The Queensland government has extend the $10,000 Queensland Building boost for another three months.

Deputy Premier and Treasurer Andrew Fraser says the decision follows industry demand and a significant momentum in applications in recent weeks.

Mr Fraser says the program is beginning to make headway in the housing industry, with the $10,000 grant available to all home purchasers buying or building a new home worth less than $600,000.

He says with official interest rates lowered in recent months, and the possibility of more rate cuts, the grant for buying or building a new home means it's never been more attractive to get a new home and support the state's housing industry.

The government says a first home owner also gets the $7000 state-funded first home owners grant and pays zero stamp duty if the home is worth less than $500,000.

Mr Fraser says state Treasury says the initial budget allocation of $140 million will cater for the time extension.