How the Help to Buy Scheme can help you buy a home

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A closer look at the Australian Government’s shared equity scheme – Help to Buy – which is helping more people achieve home ownership.

For many Australians, high property prices and rising living costs have made it harder to save the deposit needed to buy a home.

The new Australian Government Help to Buy Scheme can support you into home ownership dreams. Picture: Getty

The new Australian Government Help to Buy Scheme, launched in December 2025, is designed to reduce both the upfront cost of buying a home and the ongoing mortgage costs through support from the Government.

Here’s how the Scheme works, who it’s for, and how it could help you get into a home.

What is the Australian Government Help to Buy Scheme?

The Help to Buy Scheme is a shared equity scheme.

Shared equity means that the Australian Government contributes a portion of the purchase price of your home and holds that share as equity.

The aim of the Scheme is to support aspiring home buyers who are otherwise locked out of the market, including first-time buyers, those who have owned homes previously, single-income households, and renters.

The Scheme will support up to 40,000 households over four years from 2025-26 to purchase a home with a smaller deposit and smaller mortgage payments.

Eligible buyers must provide a minimum deposit of 2% of the home’s purchase price.

The Australian Government will contribute:

up to 40% of the purchase price for new homes
up to 30% of the purchase price for existing homes

The remaining amount is covered by a home loan through a Help to Buy Participating Lender.

How the Scheme helps reduce costs

Because the Australian Government contributes a portion of the home’s purchase price, buyers who access the Scheme can borrow less from a Participating Lender. The benefit of this includes reduced monthly mortgage repayments and interest paid over time.

It also means eligible buyers may enter the market sooner, even if they haven’t saved a 20% deposit.

For example, on a $700,000 new home:

The Government can contribute 40% of the purchase price – $280,000
If a buyer had a minimum 2% deposit – $14,000, they would only need to secure a home loan from a Participating Lender for the remaining $406,000, to purchase the home
This may significantly reduce loan repayments and make the loan easier to service

The smaller loan may also make it easier to meet lender borrowing criteria.

Who is eligible?

You may be eligible if you:

Are an Australian citizen aged 18 years or over
Do not currently own any property in Australia or overseas, with some exceptions for single parents
Will live in the property
Have saved at least a 2% deposit of the property’s purchase price
Earn $100,000 or less per year for single applicants, or $160,000 or less for joint applicants and single parents
Are purchasing a property within the relevant price cap for your location

Singles and couples now have expanded options under the scheme. Picture: Getty

You cannot receive assistance from some types of government schemes to support the purchase – like a guarantee or other shared equity schemes. However, you can still access benefits such as stamp duty concessions and grants.

What kinds of properties are eligible?

The Help to Buy Scheme applies to a range of new and existing homes:

Houses
Townhouses
Units and apartments
Off-the-plan dwellings
House-and-land packages

To qualify, the property must be within the relevant property price cap for its location.

You can check the price cap for your desired location using the Postcode Search Tool on the Government’s First Home Buyers website.

How can I leave the Scheme?

To leave the Scheme, you must pay the Government back.

However, unlike a regular loan, you won’t be charged interest or need to make monthly repayments to the Government.

You can choose to:

Buy back the Government equity share over time in increments, or in full (you can make repayments from your savings, or by borrowing more from a lender)
Repay the full equity share to the Government when the property is sold

If the property increases in value, the Government’s share increases accordingly. Likewise, if the value drops, the Government absorbs that share of the loss.

Can I still sell or renovate my home?

Yes. As the homeowner, you can sell or renovate your home.

However, because the Government holds an equity share in the property, you will need to speak with Housing Australia before undertaking actions like major renovations or refinancing.

Before you plan your dream reno, ensure you speak to your Participating Lender or Housing Australia to see if it's possible. Picture: Getty

Buyers should review the Scheme’s terms and conditions, and speak with a Participating Lender or Housing Australia if they have any concerns.