Help to Buy is an Australian Government shared-equity scheme. If you are eligible, a participating lender provides the home loan, you contribute a minimum 2% deposit, and the government contributes part of the purchase price: up to 30% for an existing home, or up to 40% for a newly built home.
You own the home, but you share some of its value with the government. When you sell, or when you buy out the government's share, that share is calculated on the value of the property at that time. The government shares in gains and losses.
This is not the same product as the 5% Deposit Scheme. Help to Buy still has income caps and a limit of 10,000 places each year. It can remove the need to pay lenders mortgage insurance, because the government's contribution reduces the size of your loan relative to the property.
This is general information only. It is not personal advice, and it is not an offer of a loan or an equity contribution.
How does the official example work?
The official scheme page uses Rob's purchase of an $800,000 home:
- Rob contributes a $16,000 deposit, which is 2% of the price
- his participating lender lends $544,000
- the government contributes $240,000, which is a 30% equity share
- Rob's loan-to-value ratio is 68% ($544,000 divided by $800,000)
- he makes principal and interest repayments on the $544,000 loan
- the government's 30% share is repaid later, through voluntary payments, a buy-back when Rob has the capacity, or when he sells
- the amount paid to the government is based on the property's value at the time of the payment, not frozen at the original $240,000
If the home later sold for more than $800,000, the government would take 30% of that higher value, not 30% of the original price. If the value had fallen, the government would also share in the fall. That is the core difference between shared equity and a guarantee or a grant.
Who is eligible?
The official Help to Buy page lists these rules. Income and other thresholds are wage indexed each year, so confirm the current figures before you apply.
- you must be at least 18
- you need a minimum deposit of 2% of the purchase price
- all applicants must be Australian citizens (permanent residency is not enough on the official wording)
- you can apply alone, or jointly with one other person, if you both meet the criteria
- your annual taxable income must be at or below $103,000 for an individual applicant, or $165,000 for single parents and joint applicants, as shown on the ATO Notice of Assessment for the previous financial year (the official page refers to this as FY 2026)
- you must live in the home as your principal place of residence; investment use and renting the property out are not allowed
- you cannot own, or beneficially own, any property in Australia or overseas, with limited exceptions for single parents who own a property jointly and want to buy out the other person's share or intend to sell their existing interest
- you cannot also receive help from other schemes, including shared-equity schemes, loans or guarantees provided by states or territories to support the purchase. You can still use stamp duty concessions, grants and other exemptions
You also have to pass the lender's credit assessment and a financial-capacity test. A place is not reserved until the lender has submitted a conditional approval application and Housing Australia has reserved it.
What are the price caps?
Help to Buy has its own caps. They are not identical to the 5% Deposit Scheme caps. On the official pages retrieved on 15 November 2026, the New South Wales capital city and regional centre cap was $1,300,000 under Help to Buy, compared with $1,500,000 under the 5% Deposit Scheme. The Northern Territory cap under Help to Buy was $600,000 for all areas, whereas the 5% Deposit Scheme listed $750,000 for the capital city and $600,000 for the rest of the Territory.
| State or territory | Capital city and regional centres | Rest of state or territory |
|---|---|---|
| New South Wales | $1,300,000 | $800,000 |
| Victoria | $950,000 | $650,000 |
| Queensland | $1,000,000 | $700,000 |
| Western Australia | $850,000 | $600,000 |
| South Australia | $900,000 | $500,000 |
| Tasmania | $700,000 | $550,000 |
| Australian Capital Territory | $1,000,000 | n/a |
| Northern Territory | $600,000 | $600,000 |
| Jervis Bay Territory and Norfolk Island | n/a | $550,000 |
| Christmas Island and Cocos (Keeling) Islands | n/a | $400,000 |
The official regional centres on the Help to Buy caps page are: in New South Wales, Newcastle and Lake Macquarie, Illawarra, Central Coast, Mid-North Coast, Coffs Harbour-Grafton and Richmond-Tweed; in Victoria, Geelong; and in Queensland, the Gold Coast and Sunshine Coast.
Your own maximum purchase price may be lower than the cap, based on what you can borrow and the size of the government contribution. The scheme site has a maximum property price calculator and a postcode search. Housing Australia will not approve a contribution where the purchase price exceeds the cap.
You may use Help to Buy to buy a new or existing home, including a house, townhouse, apartment, unit or duplex, or a vacant block with an eligible building contract, including a demolition and rebuild, in any state or territory, at or below the cap.
What are the ongoing obligations?
Help to Buy is designed as a path toward full ownership, not a lifelong arrangement. While you are in the scheme you must, among other things:
- maintain the home and keep it insured
- continue living in it as your principal place of residence
- take part in reviews, including providing insurance evidence, updated taxable income, and information about changes in your circumstances, so Housing Australia can assess whether you can make incremental payments to increase your equity share
You can leave the scheme by making incremental repayments from savings to increase your share, by buying back some or all of the government's equity with additional lending, or by selling the home. Read the Help to Buy Customer Guide and the general terms before you apply, because other obligations can apply once you are a participant.
At settlement, Housing Australia takes a second mortgage. Its conveyancer will contact you to sign the required documents.
How do I apply?
You cannot apply directly to Housing Australia. The official steps are:
- Use the Help to Buy eligibility tool.
- Speak to a participating lender listed on the scheme site.
- The lender assesses you and submits a conditional approval application. If it is accepted, a place is reserved for up to 90 days.
- You then have up to 90 days from the conditional approval letter to find a home and sign a contract. Housing Australia may approve an extension of up to another 90 days. The letter should set out your maximum purchase price. The official guidance strongly recommends a "subject to finance" clause and independent legal and financial advice.
- After you sign, the lender coordinates formal approval, and settlement proceeds with Housing Australia's documents.
Places are limited to 10,000 each year. Meeting the published eligibility rules does not guarantee a reserved place.
How is Help to Buy different from the 5% Deposit Scheme?
| Feature | Help to Buy | 5% Deposit Scheme |
|---|---|---|
| What the government does | Contributes part of the price and takes an equity share | Guarantees part of the loan so the lender can accept a smaller deposit |
| Minimum deposit | 2% | 5%, or 2% for eligible single parents and legal guardians |
| Income caps | Yes, $103,000 or $165,000 on the figures published in November 2026, wage indexed | Official pages say no income caps from 1 October 2025 |
| Places | 10,000 a year | Official pages say no waitlists or place limits from 1 October 2025 |
| Citizenship | All applicants must be Australian citizens | Australian citizen or permanent resident |
| Property types | New or existing, or vacant land with an eligible build contract | New or existing, off the plan, or vacant land with a building contract |
| When the government is paid | When you buy back the share or sell, based on later value | No equity share; you repay the loan to the lender |
Some buyers will be eligible for one scheme and not the other. Some will be eligible for neither. A larger loan under the guarantee can cost more in interest, while shared equity can mean giving up a slice of future growth. Neither result is automatically better. It depends on the home, the contribution, how long you stay, and what happens to the property's value.
Frequently asked questions
Can I use a first home owner grant with Help to Buy?
The official page says you can still benefit from stamp duty concessions, grants and other exemptions, but you cannot combine Help to Buy with other shared-equity schemes, or with state or territory loans or guarantees that support the purchase. Confirm both the grant rules and the Help to Buy terms for your transaction. See first home owner grants by state and the stamp duty calculator.
What if my income rises after I buy?
Reviews can assess whether you have the capacity to start buying back some of the government's share. The scheme is not meant to be permanent. Read the customer guide for how reviews work.
Does the government charge interest on its share?
The official overview describes an equity contribution, not a second interest-bearing loan in the same way as your home loan. The cost to you is the share of the property's later value, which may be more or less than the original contribution. The terms can include other fees or obligations, so read the customer guide and get advice rather than assuming the share is free.
General information warning
This article is general information only. It is not personal financial product advice, and it is not a recommendation to use Help to Buy. It does not take into account your objectives, financial situation or needs. Shared equity means the government shares in future gains and losses. Income caps, price caps, places and lender policies can change. Consider speaking with a licensed adviser and a participating lender, and confirm the current rules on firsthomebuyers.gov.au.
Sources
- Housing Australia and Treasury, Australian Government Help to Buy Scheme, including the official Rob example, eligibility, places and ongoing obligations.
- Housing Australia and Treasury, Help to Buy Property Price Caps, retrieved 15 November 2026.
- Housing Australia and Treasury, Help to Buy Customer Guide.
Last reviewed: November 2026.