Help to Buy Scheme Australia
- Buy your first property with only 2% deposit and No LMI.
- The Australian Government will contribute up to 40% for new homes and 30% for existing homes.
- You do not need to pay any rent or interest for the Government's equity in the property.
- 10,000 spots available each year, for four years (see eligibility criteria here)
- A mortgage broker can determine if you are eligible, and help you apply for the Help to Buy scheme.
For many young Australians, owning a home has started to feel more like a fantasy than a future goal. With soaring property prices and the ever-rising cost of living, saving up a 20% deposit can be incredibly daunting — especially for low and middle-income earners.
But there’s good news. The federal government has introduced a new initiative to help bridge the gap: the Help to Buy Scheme. If you’ve been struggling to get into the market, this could be the opportunity you’ve been waiting for.
Here’s everything you need to know.
What Is the Help to Buy Scheme?
The Help to Buy Scheme is a shared equity program backed by the Australian Government. It’s designed to help eligible Australians purchase a home with as little as a 2% deposit. The government will then contribute up to 40% of the purchase price for new homes, or 30% for existing homes.
In return, the government holds an equivalent share in your property. This share can be paid back later — either when you sell the home, refinance, or choose to buy out the government’s stake.
Who is Eligible for the Help to Buy Scheme?
To qualify for the Help to Buy Scheme, you must:
- Be an Australian citizen aged 18 or over
- Earn less than $100,000 per year as a single applicant or $160,000 for couples
- Live in the home (it must be your primary residence)
- Not currently own any property or land (in Australia or overseas)
- Have saved at least a 2% deposit
- Not be participating in another shared equity scheme
While it's designed to help first-home buyers, you may still be eligible if you haven’t owned property in the last 10 years.
How Much Can You Borrow?
The government’s equity contribution reduces the size of the home loan you need to take out, making repayments more manageable.
For New Homes:
- Government contributes up to 40%
- You borrow the remaining 60%
Example:
Home price: $800,000
Govt share (40%): $320,000
Your home loan: $480,000
For Existing Homes:
- Government contributes up to 30%
- You borrow the remaining 70%
Example:
Home price: $800,000
Govt share (30%): $240,000
Your home loan: $560,000
Keep in mind: your actual borrowing limit will also depend on your income, expenses, and lender requirements. To get an accurate idea, use a borrowing power calculator or speak to a mortgage broker.
What Are the Property Price Caps?
To ensure the scheme supports those who need it most, property price caps will apply based on your location. These caps vary by state and region, so it’s important to check the limits for where you’re planning to buy.
Area | Maximum Price |
|---|---|
NSW (Sydney and regional centres) | $1,300,000 |
NSW (other) | $800,000 |
VIC (Melbourne and regional centres) | $950,000 |
VIC (other) | $650,000 |
QLD (Brisbane and regional centres) | $1,000,000 |
QLD (other) | $700,000 |
WA (Perth) | $850,000 |
WA (other) | $600,000 |
SA (Adelaide) | $900,000 |
SA (other) | $500,000 |
TAS (Hobart) | $700,000 |
TAS (other) | $550,000 |
ACT | $1,000,000 |
NT | $600,000 |
Jervis Bay and Norfolk Island | $550,000 |
Christmas Island and Cocos (Keeling) Islands | $400,000 |
How to Apply for the Help to Buy Scheme
Applying is straightforward, but there are a few steps involved. You’ll need to:
- Confirm your eligibility
- Gather documentation (proof of income, residency, deposit, etc.)
- Find a participating lender
- Apply for a home loan that meets the shared equity requirements
Sounds complicated? It doesn’t have to be.
The easiest way to apply is through a mortgage broker who specialises in first home buyers, such as Eden Emerald Mortgages. They understand the ins and outs of government schemes and can guide you through the entire process — from eligibility checks to lender matching.
And the best part? Their service is completely free. They are paid by the lender, so you pay nothing.
When Does the Help to Buy Scheme Start?
The Help to Buy Scheme is expected to launch in late 2025, with 10,000 places available each year. While the exact start date hasn’t been confirmed yet, legislation has already been introduced, so it’s on the way.
That means now is the time to prepare.
Speak to a mortgage broker today to get your finances sorted and be first in line when applications open. The sooner you’re ready, the better your chances of securing a place in the scheme.