Australian Government Help to Buy Scheme: How Does It Work?
For some Australians, saving a deposit is only one part of the challenge of buying a home. Even with savings available, there may still be a gap between how much a buyer can borrow and the price of a suitable property.
The Australian Government Help to Buy Scheme is designed to help bridge that gap through a shared-equity arrangement.
Eligible applicants need a minimum 2% deposit, while the Australian Government may contribute up to 30% of the purchase price of an existing home or up to 40% for a newly built home. There are currently 10,000 Help to Buy places available each year.
What Is Shared Equity?
Help to Buy works differently from the Australian Government 5% Deposit Scheme.
Under Help to Buy, the Australian Government actually contributes part of the purchase price and receives a corresponding equity interest in the property.
You remain the homeowner and your name is on the title, but the Government shares proportionally in future gains or losses in the property’s value until its equity share is bought back or repaid.
How Much Can the Government Contribute?
The maximum Government contribution is:
Existing Home
Up to 30% of the purchase price
Newly Built Home
Up to 40% of the purchase price
You need to provide a minimum 2% deposit and obtain the remainder of the required finance from a participating lender.
A Simple Example
The Australian Government provides an example of an $800,000 purchase structured with:
Buyer deposit: $16,000
Home loan: $544,000
Government contribution: $240,000
Property value: $800,000
In that example, the Government holds a 30% equity interest.
If the buyer later sells the property or buys back the Government’s share, the amount payable is based on the property’s value at that time—not simply the original dollar amount contributed.
Do You Pay Interest on the Government’s Share?
Help to Buy is not structured like a standard second mortgage.
According to the current Government fact sheet, participants do not make monthly repayments, pay rent or pay interest to the Australian Government on its equity contribution while living in the property.
The Government’s equity can instead be bought back over time, and repayment may also be required as circumstances change or when the home is sold.
Who Is Eligible for Help to Buy?
For the 2026–27 financial year, key eligibility requirements include:
At least 18 years old
Australian citizenship for all applicants
Minimum 2% deposit
Applying alone or jointly with one other eligible person
Taxable income of no more than $103,000 for a single applicant
Taxable income of no more than $165,000 for joint applicants
Taxable income of no more than $165,000 for a single-parent applicant
Living in the property as your principal place of residence
Meeting the scheme’s property-ownership requirements
Purchasing within the applicable property price cap
Income thresholds are indexed and can change each financial year.
Is Help to Buy Only for First-Home Buyers?
No.
Unlike some other assistance programs, Help to Buy is not restricted only to people who have never previously owned a home.
It can support first-time buyers as well as eligible people returning to homeownership. However, applicants generally cannot currently own or beneficially own another property in Australia or overseas, subject to limited exceptions described by the scheme.
That distinction is important when explaining the scheme to website visitors.
What Are the Help to Buy Property Caps in Victoria?
Current Help to Buy property price caps for Victoria are:
Melbourne and Geelong
$950,000
Rest of Victoria
$650,000
The actual maximum purchase price available to an individual buyer may be lower depending on income, borrowing capacity, deposit and participating-lender assessment.
What Types of Property Can Be Purchased?
Eligible properties can include:
Existing houses
New homes
Townhouses
Apartments
Units
Duplexes
Eligible vacant land with a construction contract
Certain demolish-and-rebuild arrangements with an eligible builder
The buyer must use the property as their home rather than an investment property.
Can You Combine Help to Buy With Other Government Support?
Help to Buy generally cannot be combined with another government guarantee, loan or shared-equity scheme designed to assist with the home purchase.
However, current scheme information states that applicants may still be able to benefit from relevant stamp duty concessions, grants and other exemptions where eligible.
That means a Victorian buyer may want to investigate whether the Victorian First Home Owner Grant or first-home-buyer duty benefits could also apply to their circumstances.
What Are the Ongoing Responsibilities?
Help to Buy continues after settlement.
Participants are expected to:
Continue living in the home
Maintain the property
Maintain appropriate insurance
Participate in scheme reviews
Provide updated income information when required
Notify relevant parties of major changes in circumstances
The Government’s equity share must eventually be bought back or repaid, including when the property is sold.
Is Help to Buy Right for You?
Shared equity can reduce the size of the mortgage required to purchase a property, but it also means sharing part of the property’s future value with the Australian Government.
Before proceeding, buyers should carefully understand:
Their borrowing capacity
Their deposit
The Government equity percentage
Property-price limitations
Future buy-back requirements
Their long-term financial plans
Independent financial and legal advice should be considered before entering a shared-equity arrangement. The Government’s own Help to Buy guidance also recommends considering independent advice before signing scheme documents.
Want to Explore Your Home-Buying Options?
Bright Homes can help you explore suitable home and building options and understand where government programs may fit into your broader first-home or home-buying journey.