Low- and middle- income earners could get more help buying their first home from next week, as the federal government finally rolls out its long-awaited Help to Buy shared equity scheme.
Housing Australia has announced the Help to Buy program would open to first-home buyers from Friday December 5, with up to 40,000 spots available over the next four years.
Under the shared equity scheme, the government will contribute up to 40% of the purchase price for new homes or 30% for existing homes in exchange for a share in the property. Over time, the buyer will need to repay the government's share in the property, either in increments or when the property is sold.
It will be available to low- and middle-income earners, including essential workers and families, with income thresholds set at $100,000 for individuals and $160,000 for joint applicants and single parents, with a deposit of as little as 2%.
The first-home buyer boost comes after the Australian government brought forward its expansion of its 5% Deposit Scheme - formerly known as the Home Guarantee scheme – to 1 October, a move that’s been criticised for potentially inflating home prices.
Critics say the government should have rolled out the Help to Buy scheme ahead of the Home Guarantee expansion, with concerns that the latter would boost home prices and make it harder for Help to Buy participants to get into the property market.
First-home buyers will get extra support from next week with the launch of the Help to Buy scheme. Picture: Getty
Housing Australia chief executive Scott Langford said the Help To Buy scheme would help more Australians achieve the dream of homeownership.
"For families and individuals including essential workers, Help to Buy offers a meaningful pathway to home ownership,” he said.
Housing Australia will administer the program, with property price caps tailored to each state and territory to reflect local market conditions.
The scheme will initially be available through lenders Bank Australia and the Commonwealth Bank of Australia, with more lenders set to join next year.
CBA retail bank group executive Angus Sullivan said homeownership was a goal and priority for many.
“It's an important initiative to help more people enter the property market and we look forward to helping Australians access the Scheme," Mr Sullivan said.
Bank Australia managing director Damien Walsh said they were proud to deliver Help to Buy to first-home buyers.
“It reflects our commitment to affordable and accessible housing and the communities we serve,” Mr Walsh said.
Australia's median home price has grown 7.5% to $858,000 during the year to October. Picture: Getty
The arrival of the Help to Buy scheme comes as housing affordability remains near record low levels in Australia.
The latest PropTrack Housing Affordability report, released on Friday, found higher incomes and lower mortgage rates saw affordability improve slightly during the 2024-25 financial year, though mortgage serviceability and saving a deposit remain key hurdles for buyers.
Nationally, a median-income household earning about $118,000 a year could afford just 15% of all homes sold in the 2025 financial year, up from 11% a year prior.
Yet conditions remain challenging, particularly for low-income households at the 30th income percentile, who could afford to buy just 3% of homes sold in the past year.
First-home buyers may also face tighter borrowing conditions next year, with new lending limits on high-debt borrowers likely to spur a rush of activity ahead of February when the new measures will be enforced.
Home prices continue to march higher across the country, with the national median home price rising 7.5% to $858,000 during the year to October, according to PropTrack.
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