The Australian Government’s Help to Buy scheme is set to open for applications later this year.
Designed as a shared equity program, it aims to help eligible Australians purchase their first home by reducing the size of the deposit and the mortgage required.
Whether you’re just starting to research home ownership or you’re working out if this scheme could apply to you, this guide covers all the essential details — including eligibility, property price caps, and how the scheme actually works in practice.
What is the Help to Buy Scheme?
Help to Buy is a shared equity scheme. Under the program, the federal government contributes part of the purchase price of a home in exchange for an equity share in the property.
Specifically:
- The government can contribute up to 40% of the purchase price for a new home.
- For an existing home, the contribution is up to 30%.
This means buyers need a smaller deposit and borrow less from a lender, reducing both upfront and ongoing costs. Buyers remain the registered owner of the property and can choose to buy back the government’s share over time.
The scheme is administered by Housing Australia, the federal body responsible for improving housing outcomes nationwide.
Key eligibility criteria
To access Help to Buy, buyers must meet specific eligibility requirements, which include both income thresholds and property ownership status.
Income Ttresholds
- Single applicants: Taxable income of up to $100,000 per year.
- Couples (or single parents): Combined taxable income of up to $160,000 per year.
Deposit requirements
- Buyers must contribute at least 2% of the purchase price as a deposit.
- The government’s contribution, combined with the buyer’s deposit, must typically reach at least 20% of the purchase price to avoid Lenders Mortgage Insurance (LMI).
Other requirements
- Applicants must be Australian citizens aged 18 or older.
- The property must be the buyer’s principal place of residence.
- Applicants cannot currently own property in Australia (with some limited exceptions, e.g. single parents transitioning ownership following separation).
- Buyers must demonstrate they could not purchase the home without assistance from the scheme, considering their financial capacity and borrowing ability.
What properties are eligible?
The scheme applies to both new and existing residential properties, provided they meet certain criteria.
Price caps (As of 2025 update)
Price caps have been adjusted upwards to reflect current market conditions:
- Sydney: $1.3 million
- Melbourne: $950,000
- Brisbane: $1 million
- Other regions vary, based on state and regional price caps
Price cap conditions:
- Price caps are based on median house prices in each area.
- Properties must be located in a participating state or territory.
- Properties must be insured adequately and meet eligibility requirements around condition and construction (for new builds).
Eligible property types
- Existing homes: Standalone houses, apartments, or townhouses.
- New homes: Includes off-the-plan purchases, house and land packages, or properties built under a fixed-price construction contract.
How does repayment work?
Homeowners can voluntarily buy back part or all of the government’s equity share over time. There is no set deadline to do this, but there are some requirements:
- Homeowners may be required to repay part of the government’s share if their financial situation improves significantly.
- The value of the government’s share moves with the property market. For example, if the government contributed 30% at purchase, they would be entitled to 30% of the property’s market value when repaid or sold.
The property can be sold at any time, with the government’s share repaid from the sale proceeds.
How many places are available?
The scheme is capped at 10,000 places per year, over four years.
Applications are expected to open in late 2025, and demand is likely to be high, given the number of first-home buyers who meet the eligibility criteria.
How does it compare to other schemes?
The Help to Buy scheme sits alongside other government initiatives, such as:
- First Home Guarantee (previously First Home Loan Deposit Scheme)
- Family Home Guarantee
- Regional First Home Buyer Guarantee
However, unlike these schemes, Help to Buy is a shared equity model rather than a guarantee scheme.
That means the government takes an equity stake in the property, which is distinct from schemes that simply underwrite lower deposits.
Expert perspectives
The scheme has sparked mixed reactions:
Some housing economists view it as a positive step for helping lower- and middle-income Australians enter the market.
Others argue that while it benefits participating buyers, it does little to address underlying housing supply issues or broader affordability.
Regardless, for eligible buyers, it offers an additional pathway into home ownership at a time when affordability pressures remain high.
What happens next?
The Help to Buy scheme passed through parliament in late 2024, following lengthy negotiations.
Applications are expected to open later in 2025, with Housing Australia set to administer the program.
With the election announcements from both Dutton and Albanese’s campaigns focused on housing access, there’s a good chance this roll-out plan is changed or superceded by new policy.
In the meantime:
- Buyers can assess their eligibility.
- Monitor updates from Housing Australia and the federal government.
- Consider speaking with a broker or financial adviser for personalised guidance.
Summary: quick reference guide
- Government Contribution: Up to 40% (new homes), up to 30% (existing homes)
- Buyer Deposit Minimum: 2% of purchase price
- Income Caps: $100,000 (single), $160,000 (couple or single parent)
- Property Price Caps: Up to $1.3m (Sydney), varies by region
- Application Open Date: Late 2025
- Places Available: 10,000 per year (nationally)
- Eligibility: Australian citizens, first-home buyers, principal residence use
Frequently asked questions (FAQ)
When does the Help to Buy scheme start?
Applications for the Help to Buy scheme are expected to open later in 2025. While the scheme has passed through parliament, the government is finalising details before launch.
Who is eligible for the Help to Buy scheme?
Eligible applicants must:
- Be Australian citizens aged 18 or older.
- Have a taxable income of up to $100,000 (single) or $160,000 (couples or single parents).
- Not currently own property in Australia (with some exceptions for single parents).
- Intend to live in the home as their principal place of residence.
- Provide at least a 2% deposit and demonstrate they couldn’t purchase the property without assistance.
Can I buy an investment property with the Help to Buy scheme?
No. The scheme is strictly for owner-occupiers. The property must be your principal place of residence.
What types of properties are eligible?
The scheme covers both new and existing residential properties, such as houses, apartments, and townhouses. Properties must fall within regional price caps and meet specific eligibility criteria.
What is the government’s share of my home, and do I have to pay it back?
The government takes an equity share of up to 40% (new homes) or 30% (existing homes). You can repay this share over time, either partially or in full. The value of the government’s share moves with the market value of your home.
Are there any ongoing costs or repayments to the government?
There are no regular repayments required, but you may be asked to repay part of the government’s share if your financial situation improves. You can also voluntarily repay earlier if you wish.
What happens if I want to sell my home?
If you sell, the government’s equity share will be repaid from the sale proceeds, based on the home’s market value at the time of sale.
Will I have to pay stamp duty?
Yes, stamp duty and other purchase costs still apply, unless you qualify for state-based concessions (for example, first-home buyer discounts).
Can I combine Help to Buy with other government schemes?
You cannot combine Help to Buy with other Commonwealth-backed shared equity or guarantee schemes. However, you may still be eligible for state-based grants and concessions, or the First Home Super Saver scheme.
Is there a cap on places available?
Yes. There are 10,000 places available per year for four years. Demand is expected to be high, so it’s recommended to prepare early.
