Help to Buy Scheme explained
Dominic Beattie
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- The Australian Government Help to Buy Scheme sees the government providing an equity contribution to eligible home buyers
- The government contributes up to 30% of the purchase price of an existing home or 40% for newly built homes
- Eligible home buyers must have a 2% minimum deposit
- Participation in the scheme is capped at 10,000 places a year
The Australian Government Help to Buy Scheme is touted as an initiative to support more Australians to buy a home.
In practical terms, it can offer an equity contribution of up to 40% to up to 10,000 eligible homebuyers per year, particularly targetting:
- low- and middle-income earners
- single parents
- mature-aged women
- long-term renters
After a considerable delay, the Scheme officially commenced on 5 December 2025, having been promised in the lead up to the 2022 federal election.
How does the Help to Buy Scheme work?
Under Help to Buy, eligible buyers need to have a minimum 2% deposit.
They will also need additional cash to cover all fees and taxes – including stamp duty and rates – associated with the home's purchase and ownership.
The federal government contributes up to 40% of the purchase price of new homes while those opting for an existing home can receive a 30% equity contribution.
This can effectively:
- bridge the gap between a deposit and what homebuyers can borrow
- provide more buying power
- remove the need for Lenders Mortgage Insurance (LMI)
What is the Help to Buy ownership model?
Essentially, homeowners will own their home but share some of its value with the government.
In practical terms, they don't pay rent or any interest on the government’s portion of the property.
But the shared equity model means the government will also proportionally share in any gains or losses made when the home is sold - or when the homeowner eventually buys out the government's share.
The government's share must always eventually be repaid, with the amount based on the value of the property at the time.
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.
How many homebuyers have used Help to Buy so far?
As at 1 July 2026, around seven months after the scheme was launched, Housing Australia reported the Scheme had received 7,200 applications with 4,800 of those buyers having settled or found a home.
Victoria recorded the strongest uptake, followed by New South Wales and Queensland.
However, the launch of the scheme was delayed in some states and territories with state authorities needing to pass legislation to allow it to operate in their jurisdictions.
Tasmania was the last state to get on board in June 2026, completing the scheme's national roll out.
Data (as at 1 July 2026) shows:
- Almost 7 in 10 applications had come from single applicants, including 12% from single parents
- The median deposit among participants is $30,000
- 86% of applicants were first homebuyers
- 42% of women supported by Help to Buy are aged 40 or above
Am I eligible for Help to Buy?
Homebuyers will need to meet eligibility requirements to qualify for Help to Buy, including:
- being at least 18 years old
- having a minimum deposit of 2% of the home purchase price
- being Australian citizens (all applicants)
- earning less than $103,000 (pre-tax) annually, while couples and single parents will need to be earning less than $165,000 pre-tax (as at FY 2026 - income caps will change annually)
- being owner occupiers who live in the home as their principal place of residence while part of the scheme (investment properties are not eligible and renting out the property is not allowed)
- not owning any other property in Australia or overseas (although there are some exceptions for single parents who may jointly own a property and want to buy out the other person's share or sell their existing ownership)
- not receiving help from any other schemes, including loans or guarantees provided by states and territories to support the purchase (but stamp duty concessions, grants, and benefits through other exemptions are still permitted)
Types of homes permitted
Homeowners can use Help to Buy to purchase:
- a new or existing home, including a house, townhouse, apartment, unit, or duplex
- vacant block of land for construction of a new home, or
- a property that's been demolished and rebuilt, provided there is a signed eligible building contract with an eligible builder
It is available in all Australian states and territories, provided the property falls under set price caps.
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:
NSW - Newcastle & Lake Macquarie, Illawarra, Central Coast, Mid-North Coast, Coffs Harbour-Grafton, Richmond-Tweed; Victoria - Geelong; Queensland - Gold Coast, Sunshine Coast.
Price caps and geographical regions may be subject to ongoing variations depending on government reviews.
Ongoing obligations
When you are part of the Help to Buy Scheme, you will need to continue meeting ongoing eligibility criteria. This includes:
- maintaining your home
- keeping the home insured
Importantly, you will also need to participate in regular reviews where you will need to provide:
- your home insurance certificate
- your updated taxable income details
- information about key changes to your personal circumstances
- other information that may be required to assess your ability to make incremental payments to increase your equity share
Important to know
The Help to Buy Scheme is designed to help you get into home ownership but isn't meant to be a lifelong commitment.
Once you're in your home, it is intended you begin your journey to full home ownership.
Here are a few ways you can leave the scheme:
- make incremental repayments from your savings to increase your equity share over time
- buy back all or some of the government's equity through additional lending
- sell your home (upon which the government takes its equity share of any gains or losses)
How to apply for the Help to Buy scheme
Applicants must apply through a participating lender rather than via the scheme itself.
As at November 2026, participating lenders include:
- Bank Australia
- Commonwealth Bank
- Queensland Country Bank
- Teachers Mutual Bank (as part of the Teachers Mutual Group including Health Professionals Bank, Firefighters Mutual Bank, UniBank)
The lender will assess your eligibility, financial position, and submit the application on your behalf.
Your conditional loan approval will be submitted to Housing Australia which reserves a place for you in the scheme for up to 90 days during which time a purchase can be finalised.
This period may be extended to allow you extra time to find a property that best suits your needs.
It's strongly recommended interested participants seek independent legal and financial advice before they apply.
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. (Note: this is a different scheme to the Help to Buy 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.
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