- The Help to Buy scheme has helped 278 households purchase a home in the two months since its launch
- 2,356 places have been conditionally or fully approved under the federal government's shared equity scheme
- The combined number accounts for almost a quarter of the scheme's annual places
The long-promised Help to Buy scheme was launched on 5 December, effectively helping buyers to get into housing market with as little as 2% deposit.
The shared equity scheme sees the federal government contribute up to 40% of the purchase price for a new home and 30% for an established one.
Just two months in, 278 Australian households have already purchased homes through Help to Buy, while 2,078 more are preparing to buy.
Scheme administrator Housing Australia reports uptake has occurred across all states and territories, except Tasmania where the state government is yet to pass the necessary legislation for it to proceed.
The scheme is capped at 10,000 places a year - or 40,000 over four years.
Single homebuyers get a leg-up
So far, 64% of Help to Buy applicants are single with 10% being single parents.
The scheme is an alternative to the expanded 5% Deposit Scheme, launched on 1 October 2025, which abolished income caps on participation.
Sydney mortgage broker Brett Sutton, of Two Red Shoes agency, said he has seen the re-vamped scheme put single homebuyers on the back foot with young professional couples - previously ineligible under the old program - having a distinct advantage in the housing market.
"Now, they've flooded the market with strong serviceability, effectively jumping the queue," Mr Sutton said.
He said solo buyers and single-income households have been among the losers under the new regime, competing directly for the same properties against high-earning professional couples.
Other losers have been those still trying to save their 5% deposits, Mr Sutton said.
"The goalposts are on wheels," he said. "The surge in demand has pushed 'entry-level' prices higher, turning the saving process into an exhausting moving target."
It's worth noting single parents under the 5% Deposit Scheme can put up a minimum deposit of 2% of the property's value.
Under the 5% Deposit Scheme, the federal government acts as guarantor for the remaining 15-18%, effectively eliminating the need for lenders' mortgage insurance (LMI) and enabling lenders to approve loans that would otherwise require a 20% deposit.
Help to Buy achievable deposit target
All participants in the new Help to Buy scheme require a minimum 2% deposit although there are income caps on eligibility:
- $100,000 a year for individual applicants
- $160,000 a year for single parents and joint applicants
So far, the Help to Buy scheme's median deposit is $29,000, which Housing Australia described as "significantly lower" than what's typically needed.
Housing Australia's executive leader Alia Ayoub said the scheme is already creating real opportunities for Australians.
"The strong response and rapid uptake demonstrates that Help to Buy is working as intended, making home ownership achievable for thousands of people," Ms Ayoub said.
How Help to Buy works
The Help to Buy scheme effectively sees the government contribute more towards the purchase price of a home - not just guarantee the deposit as in the 5% Deposit Scheme.
Buyers must be approved by a participating lender (either the Commonwealth Bank or Bank Australia), pay their deposit and take out a loan with the government contributing towards the property value to also hold an equity share in the home.
The homebuyer repays their loan as usual and must eventually repay the government's contribution, either through:
- voluntary repayments
- when the buyer has financial capacity to buy out the government's equity share
- when the property is sold
Help to Buy is open to Australian citizens at least 18 years old who don't already own a property in Australia or overseas (unless they're buying someone else, like an ex-partner, out of a property they already own) and are buying as owner occupiers, not investors.
The scheme can't be accessed in conjunction with other government loan or guarantee schemes but buyers remain eligible for state stamp duty concessions, grants, and other exemptions.
See also: First Home Buyers & Owners Grants calculator
The Help to Buy scheme is looking to expand its panel of lenders in 2026.
In the meantime, would-be participants are advised to approach Commonwealth Bank or Bank Australia to assess their eligibility and to seek guidance through the application process.
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| 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 |
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