What is the Help to Buy scheme?
The Australian Government’s Help to Buy scheme can let eligible home buyers enter the property market sooner with a smaller deposit. It differs from the 5% Deposit Scheme, as it’s a ‘shared equity scheme’.
This means you co-buy a property with the government, and it receives equity in your home in exchange for its contribution.
How does the Help to Buy scheme work?
The Federal Government’s Help to Buy scheme sees the government contribute up to 40% of the purchase price of a new home and up to 30% for an existing home. The home buyer can take out a standard home loan to cover the rest of the property purchase.
To use the scheme, buyers will need to have saved a deposit of at least 2%, but they won’t need to pay Lenders Mortgage Insurance (LMI), which typically applies if your loan-to-value ratio (LVR) is more than 80%.
Eligible home buyers don’t need to pay rent or interest on the portion of the home held by the government, and the government’s equity can be paid down over time. Alternatively, when the property is sold, the government will take back its contribution and its share of any capital gain. If the home sells for less than it was bought for, the government will only take a portion of the proceeds equal to its share of the property.
However, if the home buyer’s income exceeds the scheme’s income thresholds for two consecutive years, they may need to ask their lender if they can borrow more to repay some or all of the government’s contribution.
Who is eligible for the Help to Buy scheme?
As of financial year 2026, the Help to Buy scheme is available to Australian citizens with a taxable income of up to $103,000 for individuals, or up to $165,000 for joint applicants and single parents. These income thresholds are updated in line with the Wage Price Index (WPI) each year.
Applicants will also need to:
- Be at least 18 years of age
- Not currently own a home
- Live in the purchased home
- Have saved the minimum 2% deposit and be able to borrow the remainder of the purchase price through a standard home loan with a participating lender
- Prove they can pay for all associated up-front costs, such as stamp duty, legal fees and mortgage fees
- Be responsible for ongoing costs associated with the property such as rates, strata and utility bills.
The scheme is open to 10,000 applicants per year.
What properties are eligible for the Help to Buy scheme?
Buyers turning to the Help to Buy scheme can use it to purchase a new or existing house, apartment, or townhouse, or a vacant block of land if they also have a contract with a builder to construct a new home.
In addition, any property purchased via the scheme needs to fall within the following price caps:
Property price caps by region: Help to Buy scheme
Eligible region | Current property |
NSW | $1,300,000 |
NSW | $800,000 |
VIC | $950,000 |
VIC | $650,000 |
QLD | $1,000,000 |
QLD | $700,000 |
SA | $900,000 |
SA | $500,000 |
WA | $850,000 |
WA | $600,000 |
TAS | $700,000 |
TAS | $550,000 |
ACT | $1,000,000 |
NT | $600,000 |
Christmas Island and | $400,000 |
Jervis Bay Territory and | $550,000 |
Source: First Home Buyers. August 2026.
*Regional centres include NSW’s Central Coast and Mid-North Coast, Illawarra, Newcastle, Lake Macquarie, and Richmond-Tweed, Geelong, the Gold Coast, and the Sunshine Coast.
How does the Help to Buy scheme compare to other homebuyer supports?
Both the 5% Deposit Scheme and the Help to Buy Scheme allow home buyers to purchase a home with a smaller deposit while avoiding LMI. But there are some big differences between them.
The 5% Deposit Scheme lets eligible home buyers purchase a property with a deposit as small as 5%, with the government ‘guaranteeing’ up to 15%. This isn’t a cash payment or a deposit. Meanwhile, there are other similar shared equity schemes being offered at the state level. Though, different terms and conditions apply across various schemes. In Western Australia, for example, eligible home buyers can get an equity contribution of up to 30% with a deposit as low as 2% and not have to pay LMI.
In Queensland, the Boost to Buy scheme can help eligible home buyers purchase with a 2% deposit, with the state government contributing up to 30% of the purchase price of a home.
