The Australian Government’s Help to Buy scheme opened for applications on 5 December 2025 and has been available in all states and territories since June 2026.
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 the essential details, including eligibility, property price caps, and how the scheme 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. You apply through a participating lender, not through Housing Australia directly.
Key eligibility criteria
To access Help to Buy, buyers must meet specific eligibility requirements, which include both income thresholds and property ownership status. Income thresholds are indexed each year on 1 July; the figures below apply for 2026-27.
Income thresholds (2026-27)
- Single applicants: taxable income of up to $103,000 per year.
- Joint applicants and single parents: taxable income of up to $165,000 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.
Property price caps
Price caps depend on where you buy. They are not indexed:
- NSW: $1,300,000 (Sydney and regional centres), $800,000 (rest of NSW)
- VIC: $950,000 (Melbourne and regional centres), $650,000 (rest of VIC)
- QLD: $1,000,000 (Brisbane and regional centres), $700,000 (rest of QLD)
- WA: $850,000 (Perth), $600,000 (rest of WA)
- SA: $900,000 (Adelaide), $500,000 (rest of SA)
- TAS: $700,000 (Hobart), $550,000 (rest of TAS)
- ACT: $1,000,000
- NT: $600,000
Price cap conditions:
- Check the current caps at firsthomebuyers.gov.au/help-to-buy before you start looking.
- The scheme is available in all states and territories.
- 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 financial year.
You apply through a participating lender. The participating lenders are Commonwealth Bank and Bank Australia, and Bank Australia is the one available through brokers like us.
How does it compare to other schemes?
The Help to Buy scheme sits alongside other government initiatives, such as:
- Australian Government 5% Deposit Scheme (formerly the First Home Guarantee)
- Family Home Guarantee (the single parent stream of the 5% Deposit Scheme)
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.
How to get started
The Help to Buy scheme opened for applications on 5 December 2025 and has been available in all states and territories since June 2026.
Housing Australia administers the program, but you apply through a participating lender.
To get started:
- Check your eligibility at firsthomebuyers.gov.au/help-to-buy.
- Keep in mind that income thresholds are indexed each 1 July.
- 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 (2026-27): $103,000 (single), $165,000 (joint applicants or single parent)
- Property price caps: up to $1,300,000 (Sydney and NSW regional centres), varies by location
- Applications: open since 5 December 2025, in all states and territories since June 2026
- Places available: 10,000 per financial year (nationally)
- Eligibility: Australian citizens, first-home buyers, principal residence use
- Participating lenders: Commonwealth Bank and Bank Australia
Frequently asked questions (FAQ)
Is the Help to Buy scheme open?
Yes. Applications opened on 5 December 2025, and the scheme has been available in all states and territories since June 2026. You apply through a participating lender (Commonwealth Bank or Bank Australia).
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 $103,000 (single) or $165,000 (joint applicants or single parents) for 2026-27.
- 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 each financial year. It’s worth getting your documents ready early.
Last reviewed: September 2026.
This information is general only and does not take your personal objectives, financial situation or needs into account. Consider whether it is right for you before acting on it. Felix Finance Pty Ltd ABN 79 664 494 615 is a credit representative (572079) of Finsure Finance and Insurance Pty Ltd, Australian Credit Licence 384704.
