Help to Buy: Government to provide buyers with up to 40% of home price
- The Federal Government is on track to begin delivering its Help to Buy scheme from 2025
- The scheme will see the government providing an equity contribution of up to 40% of a property’s value to eligible home buyers
- It will be assist up to 40,000 buyers in all states and territories, subject to legislation
The Help to Buy scheme is expected to offer an equity contribution of up to 40% for as many as 10,000 eligible home buyers per year for four years. It's expected to be offered to low- and middle-income earners, single parents, mature-aged women, and long-term renters in all states and territories.
The scheme’s planned start was announced in August 2023, having been promised in the lead up to the 2022 federal election. The Help to Buy scheme will officially commence on 5 December.
“So often these Australians have done all the right things – worked hard, saved up, made sacrifices, but a deposit for a home is still out of reach,” Prime Minister Anthony Albanese said on announcing the scheme.
“Our government will step up and assist, opening the door of home ownership to tens of thousands of Australians.”
Under Help tp Buy, eligible buyers purchasing a new home could receive an equity contribution of up to 40% while those eyeing an existing home could get a 30% equity contribution.
Homeowners taking advantage of the shared equity scheme wouldn’t pay rent nor interest on the government’s portion of the property. Though they would need to cover all fees and taxes – including stamp duty and rates – associated with its purchase and ownership.
When the property sells, the government will want a proportionate share of the capital gains (or losses).
Those using the Help to Buy scheme will also be able to ‘buy back’ portions of the government’s holding when they’re able, purchasing minimum 5% stakes at a time.
Am I eligible for Help to Buy?
To be eligible, individuals will need to be earning less than $100,000 pre-tax annually, while couples and single parents will need to be earning less than $160,000 pre-tax.
Those income limits are ongoing. If a homeowner exceeds the limits while they're participating in the scheme, they might be forced to return to their bank to see if they can borrow more to buy the government out. Labor previously clarified to Savings.com.au that the income caps will increase with the Wage Price Index.
Read more: Help to Buy scheme: The glaring issue no one is talking about
Participants will also need to have at least a 2% deposit, be unable to buy a home without the scheme, and intend to live in the property bought through the scheme.
While the scheme isn't restricted to first home buyers, those who already own property within Australia or overseas won't be eligible. That is, unless they're a single parent who holds joint ownership over a property and wishes to use the scheme to buy the other party out.
On top of that, an owner using the scheme needs to continue occupying the property. If they move elsewhere, they'll need to repay the government's equity share.
It might sound obvious, but in order to access Help to Buy, all parties to the transaction need to be at least 18 years old and Australian citizens.
Help to Buy property price caps
In addition to the above criteria, buyers utilising the scheme must adhere to the following property price caps:
Region | Price cap |
New South Wales – capital city and regional centre | $1.3 million |
New South Wales – other | $800,000 |
Victoria – capital city and regional centre | $950,000 |
Victoria – other | $650,000 |
Queensland – capital city and regional centre | $1 million |
Queensland – other | $700,000 |
Western Australia – capital city | $850,000 |
Western Australia – other | $600,000 |
South Australia – capital city | $900,000 |
South Australia – other | $500,000 |
Tasmania – capital city | $700,000 |
Tasmania – other | $550,000 |
Australian Capital Territory | $1 million |
Northern Territory | $600,000 |
Jervis Bay Territory and Norfolk Island | $550,000 |
Christmas Island and Cocos (Keeling) Islands | $400,000 |
Regional centres under Help to Buy include Newcastle & Lake Macquarie, Illawarra, Central Coast, North Coast of NSW, Geelong, Gold Coast and Sunshine Coast.
Those price caps were bolstered in March 2025 to reflect median house prices in each area, with the exception of Sydney, Newcastle, and Lake Macquarie, where median house prices were deemed outside the borrowing capacity of first home buyers.
Nitty-gritty details of the Help to Buy scheme
Some notable details of the Help to Buy scheme are still unclear, but most of the key elements have been revealed.
One key thing to note is that each state must pass specific legislation in order for the scheme to operate in its jurisdiction.
Some states - like Queensland - were quick to pass such legislation while others - like Western Australia, South Australia, and Tasmania - have been slow on the uptake. The federal government's first home buyers website reads as if the scheme will launch with or without all states' participation.
It also looks likely that the government will not take a share of any capital gains brought by improvements made to a property.
How to apply for the Help to Buy scheme
Once launched, home buyers intending to use the Help to Buy scheme will need to apply through a participating lender. They can't apply to the scheme's operator - Housing Australia - independently.
It's yet to be seen which lenders will offer the scheme, or how many will participate.
Other schemes and grants available to first home buyers
The Help to Buy scheme is just the latest available to those looking to get their foot on the property ladder.
First home buyers and those who have been out of the property game for more than a decade might find themselves eligible for the 5% Deposit Scheme.
The 5% Deposit Scheme essentially sees the federal government acting as a guarantor for up to 15% of a first home buyer's home loan, or 18% of a single parent's mortgage.
That allows eligible buyers to enter the market with a deposit of 2% or 5% without paying for lenders mortgage insurance (LMI).
To learn more, check out our resource on first home buyer grants and concessions.
Advertisement
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
