Help to Buy rollout begins as major banks sign on

Housing Australia revealed the Help to Buy scheme will officially commence on 5 December, more than two years after it was announced, on Friday

Under the scheme, the federal government will contribute up to 40% of the purchase price for new homes or 30% for existing ones.

Administered by Housing Australia, the scheme is designed to support up to 40,000 eligible Australians over the next four years, or roughly 10,000 per year.

With the government chipping in, buyers can enter the market with as little as a 2% deposit without paying lenders mortgage insurance (LMI).

The program targets low- and middle-income earners (including essential workers and families), with annual pre-tax income of no more than $100,000 for individuals and $160,000 for joint applicants and single parents.

Where can borrowers access the Help to Buy scheme?

Help to Buy scheme will initially be available through the Commonwealth Bank of Australia (CBA) and Bank Australia, with the lender panel expected to be expanded in 2026.

Those wishing to utilise the scheme must apply to either bank in order to gain access. 

"We know it can be challenging for first home buyers or someone returning to the market to take that step onto the property ladder," CBA retail bank group executive Angus Sullivan said.

"That's why we're really pleased to be supporting the government's Help to Buy initiative, aimed at making home ownership more accessible for more Australians."

Bank Australia managing director Damien Walsh added that being one of the confirmed lenders reflects the bank's "commitment to affordable housing".

"As we continue to grow, it's important we invest in areas that matter to our customers - and Help to Buy is a great example of this."

Eligible properties buyers can purchase

The scheme is available for the purchase of new or existing homes, including houses, apartments, and townhouses.

Participating buyers must intend to live in the property as their primary residence, meaning it cannot be used for investment or to move elsewhere.

Property price caps vary by state and region, reflecting the median house prices in each area.

Other things to consider

In addition to the income thresholds, those who wish to access the Help to Buy Scheme must be at least 18 years old and an Australian citizen.

While applications start on 5 December, the scheme's rollout depends on enabling legislation at the state and territory level.

This means uptake will initially be limited to jurisdictions that have passed those bills.

At launch, Help to Buy is operational in all states except Western Australia and Tasmania, with efforts underway to expand nationwide.

Those who use the scheme to purchase must continue to meet eligibility criteria, including income caps.

If they don't, Housing Australia may request they return to their lender to consider whether they can afford to repay some of all of the government's equity stake.