Australian Government Help to Buy Scheme: A Simple Guide for Home Buyers
Buying or building a home can be challenging, particularly when saving for a deposit and securing a home loan that covers the cost of the property. The Australian Government’s Help to Buy Scheme is designed to make home ownership more achievable for eligible Australians by allowing them to purchase or build a home with a smaller deposit and support from the Government through a shared equity arrangement.
The scheme is available to eligible first home buyers as well as eligible Australians returning to home ownership.
Buying or building a home can be challenging, particularly when saving for a deposit and securing a home loan that covers the cost of the property. The Australian Government’s Help to Buy Scheme is designed to make home ownership more achievable for eligible Australians by allowing them to purchase or build a home with a smaller deposit and support from the Government through a shared equity arrangement.
The scheme is available to eligible first home buyers as well as eligible Australians returning to home ownership.
01
What Is the Help to Buy Scheme?
Help to Buy is a shared equity scheme. Under the scheme, the Australian Government contributes towards the purchase price of an eligible home, while you provide a minimum deposit and obtain a home loan from a participating lender for the remaining amount.
Eligible buyers can purchase a home with a minimum 2% deposit.
There are 10,000 places available each year under the scheme.
For example, if an eligible buyer purchases an $800,000 home and receives a 30% Government contribution, the Government contribution could be up to $240,000. The buyer would still need to provide the required deposit and obtain a home loan for the remaining amount, subject to the lender’s assessment.
The Australian Government can contribute:
- Up to 30% of the purchase price for an existing home
- Up to 40% of the purchase price for a newly built home
02
How Can Help to Buy Make Buying a Home Easier?
The Government’s contribution can reduce the amount you need to borrow from a lender.
Because Help to Buy allows eligible buyers to purchase with a smaller deposit, it can also remove the need to pay Lenders Mortgage Insurance (LMI), potentially reducing the upfront cost of purchasing a home.
However, the Government’s contribution is not a grant that you simply keep. Instead, the Government holds an equity share in your property.
This means the Government shares proportionally in any increase or decrease in the property’s value when its equity share is bought back or when the property is sold.
03
Who Can Apply?
Eligibility requirements can be subject to change, so applicants should check the latest Australian Government information and speak with a participating lender before proceeding.
To participate in Help to Buy, applicants must meet the scheme’s eligibility requirements. These include:
- Minimum age: You must be at least 18 years old.
- Citizenship: All applicants must be Australian citizens.
- Deposit: You must have a minimum deposit of 2% of the purchase price.
- Single and joint applicants: You can apply individually or jointly with one other person. Both applicants must meet the eligibility requirements.
Income: For the 2026/27 financial year, the annual taxable income threshold is $103,000 for individual applicants and $165,000 for single parents and joint applicants. Income is assessed using the ATO Notice of Assessment for the previous financial year.
- Owner occupier: You must live in the property as your principal place of residence while participating in the scheme. Investment properties are not eligible.
Property ownership: You generally cannot currently own or beneficially own property in Australia or overseas. Specific exceptions apply in certain circumstances, including some single parent situations.
- Other Government assistance: You generally cannot receive assistance from other Australian Government shared equity schemes, loans or guarantees designed to support the purchase. However, some stamp duty concessions, grants and exemptions may still be available.
04
Do You Have to Be a First Home Buyer?
No.
Help to Buy is available to eligible first home buyers as well as eligible people returning to home ownership. However, applicants generally cannot currently own or beneficially own property in Australia or overseas, subject to the specific exceptions under the scheme.
If your circumstances are complex, it is important to check your eligibility using the Australian Government’s Help to Buy eligibility tools and with a participating lender.
05
What Type of Home Can You Buy?
Help to Buy can be used to purchase a newly built or existing home, provided the property meets the scheme requirements and applicable property price cap.
- Houses
Townhouses
- Apartments
Units
Duplexes
New homes
Existing homes
Vacant land for building a new home, provided an eligible building contract is in place
Certain properties that are being demolished and rebuilt
Understanding these processes early helps avoid delays and unexpected changes later.
06
Can You Use Help to Buy to Build a New Home?
Yes. Help to Buy can support eligible buyers who are building a new home.
For a new build, you may purchase vacant land and enter into an eligible building contract with an eligible builder. The combined land purchase price and total construction costs must remain within the applicable property price cap for the location.
This can make Help to Buy particularly relevant for eligible Australians who want to build a new home that suits their lifestyle, rather than purchasing an existing property.
07
What Are the Property Price Caps?
The property you purchase must be within the applicable Help to Buy property price cap for its location.
Location
Adelaide
The applicable price cap is based on the specific location, including the suburb and postcode. Buyers should check the official Australian Government postcode search tool before proceeding because the applicable cap must be confirmed for the property being purchased.
For a new home built on vacant land under separate land and building contracts, the combined land purchase price and building costs must remain within the applicable price cap.
It is also important to remember that the property price cap is not necessarily the amount you can afford. Your actual purchasing power will depend on factors such as your deposit and the maximum purchase price, home loan you can obtain from a participating lender.
08
How Does the Government's Equity Share Work?
The Government’s contribution gives it an equity share in your home.
For example, if the Government contributes 30% towards an eligible existing home, it generally holds a corresponding 30% equity share.
You remain the homeowner and live in the property, while the Government holds a financial interest in the property.
If the property’s value increases, the amount required to buy back the Government’s share may also increase. Similarly, if the property’s value decreases, the Government shares proportionally in that change.
There are no monthly repayments, rent or interest charged on the Government’s equity share while you remain in the scheme.
09
Do You Have to Pay the Government Back?
The Government’s equity contribution must eventually be dealt with through the scheme’s exit arrangements.
- Make incremental repayments to increase your ownership share.
- Buy back some or all of the Government’s equity through additional lending.
- Sell the property and exit the scheme.
When the Government’s equity is bought back or the property is sold, the amount involved is based on the property’s value at that time.
10
What Are Your Responsibilities After Buying?
Being part of Help to Buy comes with ongoing responsibilities.
Continue to meet the relevant eligibility requirements
- Live in the property as your principal place of residence
- Maintain the property
- Keep the property insured
- Participate in required reviews
- Provide information such as your home insurance certificate and updated taxable income details when required
- Provide information about important changes to your personal circumstances
These reviews help assess whether you may be able to make incremental payments towards increasing your ownership share.
The property cannot simply be treated as an investment property while you are participating in the scheme.
11
How Do You Apply?
You cannot apply directly to Housing Australia.
Applications are made through a participating lender authorised to offer the Help to Buy Scheme.
1
Check Your Eligibility
Start by checking the Australian Government's Help to Buy eligibility information and tools to see whether you may meet the main requirements.
2
Speak With a Participating Lender
A participating lender will assess your financial position and determine whether you meet the relevant lending and scheme requirements.
3
Prepare Your Application
The lender will complete the required checks and submit your application to Housing Australia where applicable.
4
Find a Suitable Property
Once you have the relevant approval, you can look for a home that meets your needs and the Help to Buy requirements, including the applicable property price cap.
5
Complete the Purchase
Your solicitor or conveyancer will assist with the contract and settlement process. Your participating lender will coordinate with Housing Australia as required to complete the transaction.
Once settlement is completed and the required documentation is finalised, you become the homeowner and a participant in the Help to Buy Scheme.
12
Important Things to Consider Before Applying
Help to Buy can provide an additional pathway into home ownership, but it is important to understand how the shared equity arrangement works before making a decision.
Your borrowing capacity
Your available deposit
- The property’s location and applicable price cap
Your income eligibility
- The total purchase or building cost
- The Government’s equity share
- The future cost of buying back the Government’s share
- Your ongoing responsibilities under the scheme
- Your long term plans for the property
Your actual purchasing power may be lower than the maximum property price cap because it also depends on your deposit and the home loan you can obtain from a participating lender
It is also recommended that you seek independent legal and financial advice before making an offer or entering into a property contract.
Planning to Build Your New Home?
For eligible Australians, the Help to Buy Scheme may provide another pathway towards building a new home.
If you are considering building, understanding your eligibility, borrowing capacity, land requirements, construction costs and applicable property price cap early can help you plan with greater confidence.
At LEXMO Homes, we believe the journey to building your home starts long before construction. From understanding your land and requirements to developing a suitable design and planning the build, our team is here to help you take the next step with clarity.
If you are eligible for the Help to Buy Scheme and are considering building a new home, our team can help you explore your building options and understand the next steps in your home building journey.
Ready to explore your building options?