The Help to Buy scheme is a federal shared equity program where the government takes an equity stake in your home — up to 30% for an existing home or 40% for a newly built home — reducing the amount you need to borrow from a bank. This means you need a smaller deposit and a smaller mortgage.
How Help to Buy Works
Under Help to Buy, the government contributes towards the purchase price in exchange for an equity share in the property. You only need a 2% deposit of your own. The government's equity stake is:
- Up to 30% for an existing home
- Up to 40% for a newly built home
You take out a mortgage for the remaining amount (typically ~58–68% of the property value). You don't pay rent on the government's share, and there's no ongoing interest on that portion.
Key Benefits
- Only 2% deposit needed — much lower than the standard 5–20%
- No LMI — saves $10,000–$30,000+
- Lower ongoing mortgage payments because you're borrowing less
- Buy back the government's share over time when you can afford to
Eligibility Criteria
| Requirement | Details |
|---|---|
| Citizenship | Australian citizen (not permanent resident) |
| Age | 18 years or older |
| Income cap (single) | $90,000 per annum |
| Income cap (couple) | $120,000 per annum combined |
| Deposit required | 2% of purchase price |
| Property type | House, townhouse, apartment (no commercial property) |
| Occupancy | Must be your principal place of residence |
| Prior property | Must not currently own a home |
Property Price Caps
Help to Buy has price caps that vary by location:
| Location | Price Cap |
|---|---|
| Sydney and major NSW centres | $950,000 |
| Melbourne and major VIC centres | $850,000 |
| Brisbane and major QLD centres | $750,000 |
| Perth (WA) | $650,000 |
| Adelaide (SA) | $650,000 |
| Hobart (TAS) | $600,000 |
| Canberra (ACT) | $800,000 |
| Darwin (NT) | $600,000 |
How to Apply
- Check your eligibility using the Housing Australia online tool
- Contact a participating lender (major banks and credit unions)
- Get pre-approval and a Help to Buy eligibility certificate
- Find a property within the price cap for your area
- Complete the purchase with your 2% deposit and the government's contribution
Buying Back the Government's Share
You can buy back the government's equity stake at any time, in full or in part, at the market value of the property. There's no time limit, but you must eventually buy it back — typically when you sell the property or refinance. The government's share grows or shrinks in line with the property's market value.
Help to Buy vs First Home Guarantee
| Feature | Help to Buy | First Home Guarantee |
|---|---|---|
| Deposit needed | 2% | 5% |
| Government stake | Yes (30–40% equity) | No (just a guarantee) |
| Income cap (single) | $90,000 | None (removed Oct 2025) |
| Citizenship | Citizen only | Citizen or PR |
| Buy back required | Yes (eventually) | No |
Related Guides
- First Home Guarantee — low deposit buying
- First Home Owner Grant by state
- How to save a deposit faster
- Home loan guide
General information only. Check the Housing Australia website for the most current Help to Buy details and availability.
How the Shared Equity Works Over Time
Help to Buy is fundamentally different from a deposit guarantee: the government actually co-owns part of your home. You buy with a minimum 2% deposit, and the government contributes up to 30% of the purchase price for an existing home or 40% for a newly built home, registered as a second mortgagee. You take out a mortgage for the remainder — typically around 58–68% of the value — so your repayments are based on a much smaller loan.
The government's share is not rent and not interest — it just sits there, growing or shrinking in dollar terms with the property's market value. You can buy it back at any time in part or in full at market value, and you must settle it when you sell or refinance. Applications opened on 5 December 2025 in participating states and territories, with around 10,000 places available each year and income caps of $90,000 for singles and $120,000 for couples. You must be an Australian citizen (permanent residents are not eligible) and the home must be your principal place of residence.
Action Plan: Applying in 2026
- Check your state or territory has passed the enabling legislation and is participating in the scheme.
- Confirm your income is under the caps ($90,000 single / $120,000 couple) and you can save a genuine 2% deposit.
- Complete the eligibility check on the firsthomebuyers.gov.au website, then apply through a participating lender.
- Choose a property within the Help to Buy price cap for your area.
- Plan for the buy-back: budget for the day you repay the government's share, which will have grown with property values.