Background
The Australian Government’s Help to Buy scheme is a shared equity program designed to assist eligible Australians in purchasing a home by reducing the financial burden of large deposits and mortgage repayments. Under this scheme, the government provides an equity contribution of up to 40% for new homes and up to 30% for existing homes, allowing buyers to secure a property with a deposit as low as 2% of the purchase price. The scheme aims to support 40,000 Australian households over four years, with 10,000 places available annually. It is part of the government’s broader strategy to improve housing affordability and assist low- to middle-income earners in achieving home ownership.
Key features
- Equity contribution: The government contributes up to 40% for new homes and up to 30% for existing homes, effectively co-owning a portion of the property.
- Deposit requirement: Eligible buyers can purchase a home with a minimum deposit of 2%, significantly lower than the typical deposit required.
- No rent on government owned share: Participants are not required to pay rent on the portion of the home owned by the government
Eligibility
- Income caps: Singles earning up to $100,000 and couples or single parents with combined incomes up to $160,000 are eligible.
- Australian citizenship: Applicants must be Australian citizens aged 18 or over
- Property ownership: Applicants must not currently own any other land or property in Australia or overseas.
- Owner-occupier requirement: The purchased property must be the buyer’s primary place of residence.
- Property price caps: There are maximum property price thresholds that vary by location to ensure the scheme targets affordable housing options. These caps are summarised in the tables below and were increased in the 2025 Federal Budget.
| Region | Current price cap | New price cap |
|---|---|---|
| NSW: capital city / regional centre | $950,000 | $1,300,000 |
| NSW: other | $750,000 | $800,000 |
| VIC: capital city | $850,000 | $950,000 |
| VIC: other | $650,000 | $650,000 |
| QLD: capital city | $700,000 | $1,000,000 |
| QLD: other | $550,000 | $700,000 |
| WA: capital city | $600,000 | $850,000 |
| WA: other | $450,000 | $600,000 |
| SA: capital city | $600,000 | $900,000 |
| SA: other | $450,000 | $500,000 |
| TAS: capital city | $600,000 | $700,000 |
| TAS: other | $450,000 | $550,000 |
| ACT | $750,000 | $1,000,000 |
| NT | $600,000 | $600,000 |
Other important information
It’s important to note that while the Help to Buy scheme offers significant assistance, it also means the government retains a share in the property. Homeowners can choose to buy back the government’s share over time or upon selling the property
