The Australian Government Help to Buy Scheme is open for applications across all states and territories. It is a shared-equity program: an eligible buyer contributes at least a 2% deposit, obtains a home loan from a participating lender and receives a government contribution of up to 30% for an existing home or 40% for a new home.
The buyer owns and lives in the property, while the government holds a proportional equity share. That share must eventually be bought back or repaid when the home is sold, and its value can rise or fall with the property.
Help to Buy at a glance
- Minimum deposit: 2% of the purchase price.
- Government contribution: up to 30% for an existing home or 40% for a newly built home.
- Places: 10,000 places each year.
- Home loan: must be obtained through a participating lender.
- Property use: owner-occupied principal residence; investment properties and renting out the home are not permitted while participating.
- Location: available in every Australian state and territory, subject to the scheme rules and local property price cap.
How the shared-equity arrangement works
Help to Buy bridges part of the gap between the buyer’s deposit, the amount a participating lender is prepared to lend and the eligible property’s purchase price. Because the government contributes equity rather than a loan repayment, the buyer’s mortgage can be smaller than it otherwise would be.
The arrangement does not mean that the government contribution is free money. The government retains a percentage share in the property’s value. If it contributed 30% at purchase, the amount required to buy back that share is generally based on 30% of the property’s value at the time of the approved repayment or sale, subject to the scheme terms.
The government proportionally shares gains or losses in value. Participants should understand the buyback, valuation and sale rules before signing.
Who may be eligible in the 2026 scheme year?
Housing Australia’s current criteria include:
- every applicant must be at least 18 years old;
- every applicant must be an Australian citizen;
- an application may be made alone or jointly with one other eligible person;
- the minimum deposit is 2% of the purchase price;
- annual taxable income must be no more than $103,000 for an individual or $165,000 for joint applicants and single parents, based on the relevant ATO Notice of Assessment for the previous financial year;
- applicants generally cannot own or beneficially own property in Australia or overseas, subject to limited exceptions described in the scheme rules; and
- the home must remain the participant’s principal place of residence.
Income and other thresholds are indexed and can change. Always check the current official eligibility tool rather than relying on an older article or a prior year’s cap.
Is Help to Buy only for first-home buyers?
No. The official scheme is available to eligible first-time buyers and some people returning to home ownership. At the time of applying, participants generally cannot own or beneficially own property in Australia or overseas.
There are limited exceptions, including certain circumstances involving a single parent who jointly owns a property and is buying out the other person’s share or intends to sell the existing interest. A participating lender must confirm how the rules apply.
What homes can be purchased?
An eligible property may be a new or existing house, townhouse, apartment, unit or duplex. The scheme can also support eligible land-and-build or demolition-and-rebuild arrangements where the required building contract and builder conditions are met.
Both the purchase price and the property value must be within the location’s current cap. Caps vary by state, territory and location, so check the official postcode tool before making an offer.
The home must be used as the participant’s principal residence. An investment property is not eligible, and the property cannot be rented out while the participant remains in the scheme.
How to apply
- Check the current criteria. Use Housing Australia’s eligibility and property-price-cap tools.
- Approach a participating lender. Applications cannot be lodged directly with Housing Australia. The participating lender assesses the applicant and submits the scheme application.
- Prepare financial documents. This may include the ATO Notice of Assessment, income evidence, bank statements, liabilities, expenses and deposit evidence.
- Obtain conditional approval. If approved, a place is generally reserved for up to 90 days.
- Find an eligible property. The price and valuation must remain within the approved limits and property cap.
- Use an appropriate finance condition. Obtain conveyancing or legal advice before signing a contract and do not assume conditional approval is final approval.
- Complete formal approval and scheme documents. Housing Australia takes a second mortgage as part of participation.
Housing Australia may approve a further reservation period in some circumstances, but an extension should not be assumed.
Ongoing obligations
After settlement, a participant must continue to comply with the scheme. Obligations include:
- living in the property as the principal place of residence;
- maintaining the home and keeping it insured;
- participating in periodic reviews;
- providing updated taxable-income and insurance information when requested;
- notifying relevant changes in circumstances; and
- following the rules for renovations, refinancing, equity repayments and sale.
Reviews may consider whether the participant has capacity to make incremental payments to increase their equity share.
How can the government share be repaid?
Participants can generally increase their ownership by making approved incremental repayments from savings, using approved additional lending to buy back some or all of the share, or repaying the government from a sale.
The amount is based on the property’s value at the relevant time, not simply the original dollar contribution. Valuations, minimum repayment rules and transaction requirements can apply.
Help to Buy is intended as a pathway towards greater or full ownership, not necessarily a permanent shared-equity arrangement.
Costs and matters to consider
A smaller mortgage can reduce scheduled repayments and remove the need for lender’s mortgage insurance under the scheme, but buyers should still budget for:
- conveyancing or legal fees;
- building and pest inspections;
- stamp duty where no exemption applies;
- loan and valuation costs;
- rates, strata charges, insurance and maintenance;
- future interest-rate increases; and
- the eventual cost of buying back the government’s percentage share.
Independent legal and financial advice can help a buyer understand the shared-equity agreement, second mortgage, future sale, relationship changes, inheritance, renovations and refinancing limitations.
Help to Buy versus the 5% Deposit Scheme
These are different programs.
- Help to Buy: minimum 2% deposit, government shared-equity contribution, income limits, property caps and ongoing obligations. The government shares in property value.
- Australian Government 5% Deposit Scheme: a government guarantee helps an eligible buyer purchase with a low deposit without the government taking an equity share. The buyer still borrows and owns the property under the applicable scheme and lender rules.
The First Home Super Saver Scheme is different again: it allows eligible voluntary super contributions and associated earnings to be released for a first-home purchase. A buyer may need to compare more than one pathway, but Help to Buy restricts the use of some other government shared-equity, loan and guarantee assistance.
Frequently asked questions
When did Help to Buy start?
The scheme opened for applications on 5 December 2025 in participating states and the territories. It is now available across all states and territories.
Can a mortgage broker submit the application?
The scheme application must be made through a participating lender. A broker can discuss broader home-loan options, but the participating lender controls its scheme application channel and eligibility assessment.
Does a 2% deposit guarantee approval?
No. Applicants must satisfy the scheme criteria and the participating lender’s credit assessment, including verified income, expenses, liabilities, credit history and serviceability.
Can the property be rented out?
No. The property must be the participant’s principal place of residence while they remain in the scheme.
What happens if the property value rises?
The amount required to buy back or repay the government’s share generally rises in proportion to the property’s value. The government also shares proportionally in a loss, subject to the scheme terms.
Check current official information before applying
Thresholds, price caps, participating lenders and scheme rules can change. Use the Australian Government Help to Buy page, its eligibility tool, price-cap checker and customer guide for the current position.
GQ Finance can discuss first-home loan options and help compare broader lender pathways. Help to Buy itself must be applied for through a participating lender. Request a discussion. Eligibility, verification, scheme rules, serviceability and responsible-lending requirements apply.
