The Help to Buy Scheme could make homeownership possible with a deposit of just 2%, but there is an important trade-off: the Australian Government shares in your property’s future value. For eligible buyers who cannot save a traditional deposit, this support can reduce borrowing needs and monthly repayments.
This guide explains the scheme’s 2026 eligibility rules, income limits, property price caps, participating lenders and application process. You’ll also learn how its long-term costs compare with the First Home Guarantee and buying with a standard 20% deposit.
Key Takeaways Summary Table
| Feature | What You Need to Know |
| Minimum deposit | At least 2% of the purchase price, subject to assessment. |
| Government contribution | Up to 30% for existing homes and 40% for eligible new homes. |
| Annual places | 10,000 places are available each year. |
| Income limits | $103,000 for individual applicants and $165,000 for joint applicants or single parents, using the applicable 2025–26 income assessment. |
| Property price caps | Limits vary by state, territory and location. |
| Lenders mortgage insurance | The smaller required loan may help you avoid LMI, depending on the approved financing structure. |
| Main advantage | You can buy sooner with a smaller deposit and a lower home loan. |
| Main disadvantage | The Government shares in your property’s capital growth and sale proceeds. |
| Best suited to | Eligible buyers with limited savings who cannot purchase a suitable home without government equity support. |
Help to Buy Scheme: Overview and Verdict
The Help to Buy Scheme is a federal shared equity programme administered by Housing Australia. It helps eligible buyers purchase a home by combining their savings, a participating lender’s loan and a government equity contribution.
Unlike a standard deposit guarantee, the Government contributes money towards the purchase price in exchange for a share of the property’s value. You own and occupy the home while repaying your home loan and meeting the scheme’s ongoing conditions.
The scheme opened for applications on 5 December 2025, initially in participating jurisdictions. The official government website now confirms availability across all states and territories.
The verdict: Help to Buy offers substantial support if your income can cover repayments but your deposit and borrowing capacity fall short. However, you must accept shared equity, strict eligibility rules and fewer lender choices than the broader home loan market offers.
What Is The Australian Government Help to Buy Scheme?
The Australian Government designed Help to Buy for people who can manage homeownership costs but struggle to buy a suitable property independently.
Housing Australia administers the programme and coordinates the government’s contribution. You still need approval from an authorised lender and must satisfy the scheme’s financial and property requirements.
The programme provides up to 10,000 places annually over its planned four-year initial period, supporting up to 40,000 households.
Importantly, you do not need to be a first-home buyer. Previous property ownership does not automatically exclude you, provided you meet the current ownership rules.
The scheme can support eligible purchases of existing homes and qualifying new builds. You must use the property as your principal place of residence, rather than as an investment.
How The Help to Buy Shared Equity Mechanics Work
Help to Buy combines three funding sources:
- Your deposit: You contribute at least 2% of the property’s purchase price, although your lender may require more.
- Your home loan: A participating lender assesses your borrowing capacity and provides the loan you can reasonably afford.
- Government equity: The Government contributes up to 30% for an existing home or 40% for an eligible new home.
The contribution reduces the amount you need to borrow. However, the Government’s share is an ownership interest, not an interest-free personal loan with a fixed repayment amount.
You do not pay interest on the Government’s equity contribution. Instead, the Government shares proportionally in changes to the property’s market value, subject to the scheme’s rules.
Example: Buying An $800,000 Existing Home
Suppose you purchase an eligible existing home for $800,000.
| Funding source | Amount | Share of price |
| Your deposit | $16,000 | 2% |
| Government contribution | $240,000 | 30% |
| Your home loan | $544,000 | 68% |
| Total | $800,000 | 100% |
This example assumes the maximum 30% government contribution and a loan covering the remaining balance.
Your actual deposit, government contribution and loan will depend on your circumstances and assessment. You must also budget for stamp duty, conveyancing, inspections, insurance and other purchasing costs.
Without the government contribution, you would need to borrow more or find additional savings. A smaller loan generally means lower principal-and-interest repayments, provided the interest rate and loan term remain comparable.
Example: Buying An $800,000 New Home
For an eligible new home, the Government can contribute up to 40%.
| Funding source | Amount | Share of price |
| Your deposit | $16,000 | 2% |
| Government contribution | $320,000 | 40% |
| Your home loan | $464,000 | 58% |
| Total | $800,000 | 100% |
This structure can reduce your borrowing needs further. However, the property must meet the scheme’s definition of an eligible new home.
These examples illustrate funding structures, not guaranteed approvals. The scheme may require a higher personal contribution if your financial assessment shows you can afford one.
Current Help to Buy Scheme Income Thresholds
Your taxable income determines whether you meet the scheme’s income test. Housing Australia uses your most recent applicable financial year’s Australian Taxation Office Notice of Assessment.
For applications assessed against the 2025–26 financial year, the following thresholds apply.
| Applicant type | Maximum annual taxable income |
| Single applicant who is not a single parent | $100,000 |
| Joint applicants, combined | $160,000 |
| Single parent or single legal guardian | $160,000 |
For applications made from 1 July 2026, the indexed thresholds are:
| Applicant type | 2026–27 threshold |
| Single applicant who is not a single parent | $103,000 |
| Joint applicants, combined | $165,000 |
| Single parent or single legal guardian | $165,000 |
The applicable threshold depends on the financial year used for your application. Check your Notice of Assessment and confirm the correct limit with your lender.
Joint applicants must meet the combined income threshold. Both applicants must also satisfy the relevant eligibility requirements.
Meeting the income test alone does not guarantee approval. Your lender will assess your financial position, borrowing capacity and ability to manage ongoing ownership expenses.
Help To Buy Property Price Caps And Regional Limits
The scheme limits eligible purchase prices to keep government assistance within defined market ranges. Your property’s location determines the applicable cap.
The current caps are shown below.
| State or territory | Capital city and regional centres | Other areas |
| 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 | Not applicable |
| Northern Territory | $600,000 | $600,000 |
| Jervis Bay Territory and Norfolk Island | Not applicable | $550,000 |
| Christmas Island and Cocos (Keeling) Islands | Not applicable | $400,000 |
These are Help to Buy limits, not the limits for the separate Australian Government 5% Deposit Scheme.
Some regional centres have higher caps than surrounding areas. These include Geelong, the Gold Coast and Sunshine Coast, and specified regional centres in New South Wales.
Before signing a contract, confirm the exact postcode limit. Your lender’s property valuation must also satisfy the scheme’s requirements. For a separate land purchase and building contract, the combined land price and construction cost must remain within the applicable cap.
Key Eligibility Requirements For Help To Buy Scheme
You must meet the scheme’s personal, financial and property conditions before Housing Australia can approve your participation.
Citizenship And Age
You must be an Australian citizen and at least 18 years old. Permanent residency alone does not satisfy the scheme’s citizenship requirement.
Property Ownership Status
You generally cannot currently own or beneficially own property in Australia or overseas. However, previous ownership does not automatically disqualify you.
Specific exceptions apply to eligible single parents who jointly own property with another person and intend to buy out that person’s share or sell their existing interest.
Owner-Occupier Rules
You must live in the property as your principal residence while participating in the scheme. You cannot purchase an investment property or use the arrangement to acquire a home primarily for rental income.
You must also maintain the property and keep appropriate home insurance in place.
Financial Capacity And Other Assistance
The scheme targets buyers who need government equity support to purchase a suitable home. You must contribute as much as you can reasonably afford towards the purchase.
You also need an approved loan from a participating lender. You generally cannot combine Help to Buy with another government-backed home-purchase scheme or shared equity programme.
However, you may still qualify for relevant state grants, stamp duty concessions and other permitted benefits. Confirm compatibility before relying on these concessions.
Participating Lenders Offering The Scheme
You cannot apply directly to Housing Australia. Instead, an authorised lender assesses your finances and submits your application.
The official participating-lender list includes:
- Commonwealth Bank (CommBank): A major bank offering access to Help to Buy through its home lending specialists.
- Bank Australia: A participating lender offering another route for eligible applicants.
- Teachers Mutual Bank: The group participates through Teachers Mutual Bank and its relevant banking brands.
- Health Professionals Bank: This brand belongs to the Teachers Mutual Bank group.
- Firefighters Mutual Bank: Eligible applicants can enquire through this mutual banking brand.
- UniBank: This is another participating brand within the Teachers Mutual Bank group.
- Queensland Country Bank: Eligible buyers can enquire about the scheme through this lender.
The authorised panel can change, and not every lender necessarily offers the same property or loan options. Check the current official participating-lender list before applying.
Step-By-Step: How To Apply For The Help to Buy Scheme
A structured application can help you avoid unnecessary delays. Follow these stages before committing to a property.
Understand Your Financial Position
Start by reviewing your savings, taxable income, existing debts and regular living costs. Allow for purchasing expenses and emergency savings rather than allocating every dollar towards the deposit.
Contact A Participating Lender
Discuss your circumstances with an authorised lender. Ask about its eligibility assessment, borrowing capacity calculation, interest rates, fees and property restrictions.
Prepare Your Documents
Your lender will explain its documentation requirements. You should generally prepare:
- Your latest ATO Notice of Assessment, which confirms your taxable income.
- Identification and evidence of Australian citizenship, which establish your personal eligibility.
- Savings and account statements, which help demonstrate your available deposit and financial position.
- Details of existing debts and living expenses, which support the lender’s serviceability assessment.
- A completed Home Buyer Declaration and other required scheme documents, which confirm relevant eligibility information.
Additional documents may apply to your situation.
Obtain Home Loan And Scheme Assessment
Your lender assesses your borrowing capacity and determines whether you need government equity support. It then submits the relevant application to Housing Australia.
Approval depends on meeting the scheme rules and securing an available place. A preliminary discussion does not guarantee acceptance.
Find An Eligible Property
Once you understand your budget and approval conditions, search within the applicable property price cap. Check the property’s eligibility and arrange appropriate inspections before signing a contract.
Complete Approval And Settlement
Housing Australia coordinates the formal participation arrangements. Its conveyancer will arrange the required documents, including the second mortgage securing the Government’s interest.
Your lender will explain the final loan documents and settlement requirements. You become a homeowner once the purchase settles, subject to the scheme’s continuing obligations.
First Home Buyers+1
Pros And Cons Of Using The Help to Buy Scheme
Help to Buy can overcome a major barrier to ownership, but it changes the financial relationship between you and your home.
Advantages
- Smaller deposit: You may qualify with 2% saved, which can shorten the time needed to enter the property market.
- Lower loan repayments: The government contribution reduces the amount you borrow, potentially making repayments more manageable.
- No interest on government equity: You do not pay conventional loan interest on the Government’s contribution, although its share of property value can increase.
- Access for previous homeowners: Eligible returning buyers can apply, unlike schemes restricted to first-home buyers.
- Potential LMI savings: A smaller mortgage may avoid lenders mortgage insurance, depending on the final financing structure and lender requirements.
Disadvantages
- Shared capital growth: The Government receives its agreed share of the property’s value when you sell or buy back its equity.
- Limited lender choice: You must use a participating lender, restricting your options compared with the wider market.
- Ongoing restrictions: You must occupy, maintain and insure the property while participating in the scheme.
- Additional administrative requirements: Income reviews, property valuations and scheme documentation can complicate future decisions.
- Repayment flexibility has limits: Buying back equity requires sufficient savings or additional borrowing capacity, which you may not have later.
The main question is whether the benefit of buying sooner outweighs the future cost of sharing your home’s value.
Help to Buy Vs. Other Grants And Deposit Options
Help to Buy is not the only route into homeownership. Compare its financial structure with the alternatives before deciding.
| Feature | Help to Buy | Gvt 5% Deposit Scheme | Standard 20% deposit |
| Minimum deposit | 2%, subject to assessment | Generally 5% for eligible first-home buyers | 20% |
| Government support | Government contributes equity | Government guarantees part of the lender’s risk | No government deposit guarantee required |
| Government ownership share | Yes | No | No |
| Income caps | Yes | No income caps under the expanded scheme | No scheme income cap |
| Capital growth | Shared with Government | Retained by homeowner | Retained by homeowner |
| LMI | May be avoided under the scheme’s financing structure | Eligible buyers avoid LMI | Generally unnecessary at 80% LVR |
| Eligibility | Citizenship, income, ownership and other rules apply | Separate eligibility and ownership rules apply | Subject to lender approval |
The former First Home Guarantee now sits within the Australian Government 5% Deposit Scheme, expanded from 1 October 2025. Eligible first-home buyers can generally purchase with a 5% deposit without giving the Government an ownership share.
The single-parent stream has separate rules and may permit a 2% deposit. Its eligibility requirements differ from Help to Buy.
A standard 20% deposit avoids sharing equity and generally avoids LMI. However, saving that amount can take considerably longer.
Help to Buy can be more accessible upfront, while a guarantee scheme may be more attractive if you can afford the repayments on a larger loan.
Is The Help to Buy Scheme Good For Single Income Earners?
Help to Buy may suit a single-income household that has stable earnings but limited savings. The government’s contribution can reduce the loan required to purchase an eligible home.
For example, a buyer earning $85,000 annually might qualify under the individual income threshold. However, eligibility depends on taxable income, deposit requirements, borrowing capacity and other scheme conditions.
Single applicants must still demonstrate that they can afford repayments without relying on another household income. Lenders consider existing debts, living expenses, interest-rate buffers and other financial commitments.
A smaller loan can improve affordability, but it does not remove ownership costs. You still need money for council rates, utilities, insurance, maintenance and unexpected repairs.
The scheme may help you buy sooner, provided you can comfortably manage these ongoing expenses.
Is The Help to Buy Scheme Good For Couples And Single Parents?
Couples can apply jointly when both applicants meet the relevant eligibility requirements. Their combined taxable income must remain within the applicable joint income threshold.
The scheme can help couples who earn enough to service a loan but struggle to accumulate a traditional deposit. However, you should compare the benefits against the cost of sharing future property growth.
Single parents have a separate income threshold and may qualify despite previous property ownership under specific circumstances. For example, an eligible single parent may apply when buying out a former partner’s share of a jointly owned property.
Single parents must apply individually under the scheme’s rules. They cannot use a joint application to combine their income with another applicant.
For either household type, assess repayments against realistic living costs and future family needs. A property that fits your current budget should remain manageable if your circumstances change.
Hidden Costs, Risks, And Considerations
The advertised 2% deposit is only one part of the financial decision. You must understand the ongoing obligations and the eventual cost of leaving the scheme.
Buying Back The Government’s Equity
You can increase your ownership share through permitted incremental repayments or buy back some or all of the Government’s equity.
The amount required depends on the property’s assessed value and the applicable scheme rules. Therefore, you should not assume you can repay the original government contribution and automatically recover its entire share.
Suppose the Government contributed $240,000 towards your $800,000 existing home. If the property later rises to $1 million, a 30% share would represent $300,000.
You could therefore need to pay more than the original contribution to buy back the same percentage. Actual calculations depend on the scheme’s valuation and adjustment rules.
Sharing Future Capital Growth
The Government shares proportionally in increases and decreases in property value. This means its contribution does not behave like a conventional fixed loan.
If your home’s value rises significantly, buying back the Government’s share may become more expensive. Conversely, a fall in value may reduce the dollar value of its share.
Renovations And Property Improvements
Significant improvements can affect the Government’s equity calculation. The scheme has rules governing qualifying improvements and related adjustments.
Before undertaking major renovations, check whether you need approval or supporting evidence. Keep invoices and construction records so you can establish the costs of eligible work.
Selling Or Refinancing
Selling your home generally requires the Government to receive its agreed percentage of the sale value. This reduces the proceeds available to you after paying off your lender and other selling costs.
Refinancing can also require coordination with the scheme and an authorised lender. Do not assume you can freely switch to any bank offering a lower interest rate.
Other Ownership Costs
You remain responsible for the property’s running costs and required insurance. Stamp duty, conveyancing, inspections, moving expenses and repairs can create a substantial upfront funding gap.
You should also keep emergency savings available. Using every dollar for settlement could leave you vulnerable to unexpected expenses.
Final Verdict: Is The Help to Buy Scheme Worth Considering?
The Help to Buy Scheme can provide a meaningful pathway into homeownership for eligible Australians who have sufficient income but cannot bridge the deposit and borrowing gap.
Its biggest advantage is the combination of a small deposit and a reduced home loan. This can lower repayments and bring suitable properties within reach sooner.
However, the Government’s contribution comes with a real long-term cost. You share property value changes, face ongoing scheme requirements and may have fewer refinancing options.
For some buyers, that trade-off is worthwhile because it makes homeownership possible. Others may prefer the First Home Guarantee successor scheme or a standard deposit strategy that allows them to retain all future capital growth.
Ultimately, compare the upfront benefit against the potential cost of sharing equity over many years. The right choice depends on your finances, property goals and willingness to accept the scheme’s conditions.
Frequently Asked Questions About The Help to Buy Scheme
Can I Buy A Home With A 2% Deposit Through Help To Buy?
Yes. Eligible applicants can contribute a minimum 2% deposit, provided they meet the scheme requirements and obtain lender approval. Your lender may require a larger contribution after assessing your financial position.
What Is The Income Limit For Help To Buy In 2026?
For the 2026–27 financial year, the limit is $103,000 for individual applicants who are not single parents. The combined limit is $165,000 for joint applicants, while eligible single parents have a $165,000 limit.
Do I Have To Be A First-Home Buyer?
No. Help to Buy can support eligible returning buyers as well as first-home buyers. However, you generally cannot currently own property in Australia or overseas, subject to specific exceptions.
Does The Government Charge Interest On Its Contribution?
No. You do not pay interest on the Government’s equity contribution. Instead, the Government shares proportionally in changes to your home’s value, subject to the scheme’s rules.
Can I Use Help To Buy For An Existing Home?
Yes. Eligible existing houses, townhouses, apartments, units and duplexes can qualify. The property must meet the scheme’s requirements and remain within its applicable price cap.
Which Banks Offer The Help To Buy Scheme?
Participating lenders include Commonwealth Bank, Bank Australia, Teachers Mutual Bank, Health Professionals Bank, Firefighters Mutual Bank, UniBank and Queensland Country Bank. Check the official government list for the current panel.
Can I Sell My Home While Using Help To Buy?
Yes, but selling generally requires the Government to receive its percentage share of the property’s assessed value. You should account for this amount, your outstanding home loan and selling costs when estimating your net proceeds.
Is Help To Buy Better Than The First Home Guarantee?
It depends on your circumstances. Help to Buy reduces your borrowing through government equity, but you share future property value changes. The 5% Deposit Scheme generally allows eligible first-home buyers to retain full property ownership without a government equity share.
Disclaimer
This article provides general information about the Australian Government’s Help to Buy Scheme as at October 2026. It does not constitute personal financial, legal, tax or credit advice.
Eligibility requirements, income thresholds, property price caps and participating lenders may change. Confirm current scheme rules with Housing Australia and your chosen lender before making a financial commitment.
Your lender must assess your circumstances and approve your home loan. Consider obtaining independent financial, legal and tax advice before entering a shared equity arrangement.
More Resources For Homebuyers
- What is Lenders Mortgage Insurance?
- Calculator – How much deposit do you need to buy a home in Australia
- No deposit home loans for first time buyers
- Understanding the hidden costs of buying a house in Australia
- Fixed interest Rates Vs Variable – which should you choose?
- What is an offset account and how does it work?
- How is borrowing power calculated in Australia?
Sources Used In This Article
The following official sources support the scheme details, eligibility rules, financial thresholds and comparisons discussed in this guide.
– Australian Government Help to Buy Scheme: Explains the scheme’s purpose, minimum deposit, government contribution, eligibility requirements and application process.
– Australian Government Housing Policy Overview: Explains Help to Buy alongside other federal homeownership support programmes.
– Commonwealth Bank Help to Buy Information: Provides lender-specific information about the application process, shared equity structure and eligible property types.
