Key takeaways
- Help to Buy is a shared equity scheme: the Government contributes up to 30% (existing home) or 40% (new home) and you need a minimum 2% deposit plus a home loan from a Participating Lender.
- It commenced on 5 December 2025. It is separate from the 5% Deposit Scheme and from NSW grants and stamp duty concessions.
- For 2026-27, taxable income caps are $103,000 (individual) and $165,000 (single parent or joint applicants). In NSW the price cap is $1,300,000 (capital city and regional centres) or $800,000 (rest of NSW).
- You apply through a Participating Lender, not directly. Both gains and losses in the home's value are shared with the Government.
What Is the Help to Buy Scheme? The Australian Government Shared Equity Scheme
The Help to Buy scheme is an Australian Government program for buyers who have saved something but are still short of buying a home that meets their needs. The official firsthomebuyers.gov.au page describes it as a shared equity scheme where the Government contributes towards the purchase price. It is open to first home buyers and to people returning to home ownership, with 10,000 places available each year.
Under the Australian Government Help to Buy scheme, you save a minimum 2% deposit and obtain a home loan from a Participating Lender. The Government then contributes up to 30% of the price of an existing home or up to 40% of the price of a newly built home. The official site says this can bridge the gap between your deposit, what you can borrow and the price of the home, and removes the need to pay Lenders Mortgage Insurance.
It is useful to see where it sits among the other first home buyer measures. We cover those separately in our guides to the First Home Guarantee and NSW first home buyer grants, and our first home buyer loans page explains how a broker fits in.
How Does the Help to Buy Scheme Work? A Worked Example
When you buy through the scheme, you own the home but share some of its value with the Government. You do not pay interest on the Government's contribution. Instead, the Government's equity share rises and falls with the property's market value, so it shares proportionally in any gain or loss when you sell or when you buy out its share.
The official site gives an example. Rob buys a home for $800,000. His structure is:
| Part of the purchase | Amount | Share of $800,000 |
|---|---|---|
| Rob's deposit | $16,000 | 2% |
| Home loan from a Participating Lender | $544,000 | 68% |
| Government contribution | $240,000 | 30% |
Rob repays his loan over 30 years with monthly principal and interest repayments to his lender. The Government's share must eventually be repaid, through voluntary repayments, when Rob can afford to buy back its equity, or when he sells. The amount is always based on the property's value at the time of payment. This example is the Government's illustration, not a quote, and your own numbers will differ.
The loan portion is still a normal home loan, so repayments, fees and rates vary by lender. You can model that portion with our home loan calculators, including the repayment calculator.
Help to Buy Scheme Australia: When Does It Start?
If you are searching for the Help to Buy scheme Australia start date, a Housing Australia media release dated 28 November 2025 says the scheme would commence on Friday 5 December 2025. At launch, the release says Help to Buy was operational in Queensland, Victoria, New South Wales, South Australia, the ACT and the Northern Territory, with the other states needing to pass enabling legislation. The release also said Housing Australia expected the scheme to support up to 40,000 households over four years. Check Housing Australia's announcement and the official site for the current position in your state or territory.
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Help to Buy Scheme Eligibility: The Main Criteria
The following eligibility points come from the official page, checked on 1 October 2026. Your Participating Lender makes the actual assessment.
- Age and citizenship. At least 18, and all applicants must be Australian citizens at the time of application.
- Deposit. A minimum 2% of the purchase price. You are expected to contribute as much as you can reasonably afford, and a lender assesses your financial capacity.
- Applicants. Alone, or with one other person, and both must meet the criteria.
- Owner-occupier. You must live in the home as your principal place of residence. Investment properties are not eligible and renting the home out is not allowed.
- No property ownership. You cannot own or beneficially own property in Australia or overseas, with exceptions for some single parents.
- Other government help. You cannot receive help from other shared equity schemes, or loans or guarantees provided by governments for the purchase. You can still use stamp duty concessions, grants and other exemptions, and the First Home Super Saver Scheme for your deposit.
| Income cap (taxable income on latest Notice of Assessment) | 1 July 2025 - 30 June 2026 | 1 July 2026 - 30 June 2027 |
|---|---|---|
| Single applicant | $100,000 | $103,000 |
| Single parent applicant | $160,000 | $165,000 |
| Joint applicants | $160,000 | $165,000 |
These caps are wage indexed each year, per the official income and threshold updates. The FAQ also notes that Housing Australia cannot override the income cap, including for one-off bonuses or redundancy payments. The official eligibility tool is a quick first check.
Help to Buy Scheme NSW: Price Caps for the Capital City and Regional Centres
The Help to Buy scheme NSW price caps set the maximum purchase price for an eligible home. The official page lists these for New South Wales:
| NSW area | Price cap |
|---|---|
| Capital city and regional centres | $1,300,000 |
| Rest of NSW | $800,000 |
The regional centres listed for NSW are Newcastle and Lake Macquarie, Illawarra, Central Coast, Mid-North Coast, Coffs Harbour-Grafton and Richmond-Tweed. Caps apply by suburb and postcode, and some suburbs have more than one postcode. Housing Australia cannot approve an application where the price exceeds the cap, so use the official price caps tool before making an offer. Price caps are not indexed and are changed through separate government decisions, so they can change.
You can use the scheme for a new or existing house, townhouse, apartment, unit or duplex, or for vacant land or a demolish-and-rebuild where you have signed an eligible building contract with an eligible builder. If you plan to build, see our first home buyer construction loan guide, and speak to your lender early about timing, because the official FAQ says some off-the-plan and unregistered land purchases may not meet the scheme's settlement timeframes.
Help to Buy vs the 5% Deposit Scheme vs NSW Grants
People often mix these up, but they are different programs with different rules. Do not assume details from one apply to another.
| Help to Buy | 5% Deposit Scheme (First Home Guarantee) | NSW grants and concessions | |
|---|---|---|---|
| Type | Shared equity: the Government holds an equity share in your home | A separate federal scheme for first home buyers with a minimum 5% deposit | State-based grants and stamp duty concessions |
| Minimum deposit | 2% | 5% | Depends on the measure |
| Where to check | firsthomebuyers.gov.au | firsthomebuyers.gov.au | Revenue NSW |
Per the official FAQ, you can use Help to Buy alongside stamp duty concessions, grants and other exemptions, but not alongside other government shared equity schemes, loans or guarantees for the same purchase. That is a reason to compare options before you commit to one. Our guides to the First Home Guarantee in Sydney and NSW grants cover the other measures, and a guarantor home loan is another route some buyers consider.
Help to Buy Scheme: How to Apply, and Who Offers It
You cannot apply directly to Housing Australia. The official steps are:
- Check your eligibility using the official tool.
- Speak to a Participating Lender, which assesses your eligibility and whether Help to Buy is right for you.
- Prepare your application. The lender submits a conditional approval application, and once approved you have a place reserved for up to 90 days.
- Find a home. You have up to 90 days to find a home and sign the contract of sale, with a possible extension of up to another 90 days if Housing Australia approves. The official site strongly recommends a 'subject to finance' clause and independent legal and financial advice.
- Buy and join the scheme. Housing Australia's conveyancer arranges signing of the documents, including the second mortgage Housing Australia takes, before settlement.
On the Help to Buy scheme lenders question: only Participating Lenders authorised by Housing Australia can offer it. On 1 October 2026 the official list showed six Participating Lenders, and the FAQ says the panel will be reviewed and updated over time. See the official participating lenders list for current names. The FAQ notes you may work with a mortgage broker, who can liaise with a Participating Lender for you.
Is the Help to Buy Scheme Worth It? Trade-Offs to Weigh
Whether the Help to Buy scheme is worth it depends on your income, savings, the home you want and how long you plan to stay. These are points to weigh, not advice.
Potential benefits: a lower deposit (from 2%), a smaller loan, no Lenders Mortgage Insurance to pay, and no interest on the Government's contribution.
Costs and risks to understand:
- You share gains and losses with the Government, so the dollar value of its share changes with the market.
- You must live in the home, keep it insured and maintained, and cannot rent it out.
- Reviews happen at least every five years, and if your income exceeds the cap for two consecutive financial years you may be required to repay part or all of the Government's share, though not until you can reasonably afford to.
- Major changes such as renovations, refinancing or selling require notifying Housing Australia in advance.
- You still need to qualify for a home loan from a Participating Lender on its criteria, and the loan has its own fees and rates.
The official site recommends reading the Customer Guide and General Terms and seeking professional advice before entering the arrangement.
Help to Buy Scheme Calculator and Tools
The official maximum property price calculator estimates the purchase price you may be able to afford under the scheme, and your own purchasing power may be lower than the cap. For the loan portion, our calculators can test borrowing power and stamp duty. Your broker can walk through how the numbers sit together.
Your next step
Check the official eligibility tool and the NSW price cap for your target suburb, then talk to a Sydney broker about how Help to Buy compares with your other options and which lenders to approach. Start your free assessment or call 0432 634 648.
Frequently Asked Questions
What is the Help to Buy scheme?
The Australian Government Help to Buy Scheme is a shared equity scheme. Eligible buyers need a minimum 2% deposit and a home loan from a Participating Lender, and the Government contributes up to 30% of the purchase price for an existing home or up to 40% for a newly built home, according to firsthomebuyers.gov.au.
How does the Help to Buy scheme work?
You own the home and take out a home loan for your share. The Government holds an equity share, does not charge interest on its contribution, and shares proportionally in any gain or loss in the home's value when you sell or buy out its share. You can leave the scheme by making incremental repayments, buying back some or all of the Government's equity through additional lending, or selling the home.
When does the Help to Buy scheme start in Australia?
Housing Australia announced that the Help to Buy Scheme commenced on Friday 5 December 2025. At launch it was operational in New South Wales, Queensland, Victoria, South Australia, the ACT and the Northern Territory, and the remaining states needed to pass enabling legislation. Check firsthomebuyers.gov.au for the current position.
Who is eligible for the Help to Buy scheme?
Applicants must be at least 18, be Australian citizens, have a minimum 2% deposit, be owner-occupiers, and not own property in Australia or overseas (with limited exceptions for some single parents). Taxable income on the latest Notice of Assessment must be at or below $103,000 for an individual, or $165,000 for a single parent or joint applicants, for the 2026-27 period. Other criteria apply.
What is the Help to Buy price cap in NSW?
According to firsthomebuyers.gov.au, the cap is $1,300,000 for the NSW capital city and regional centres (Newcastle and Lake Macquarie, Illawarra, Central Coast, Mid-North Coast, Coffs Harbour-Grafton and Richmond-Tweed) and $800,000 for the rest of NSW. The caps are by suburb and postcode, so check the postcode tool before you make an offer.
How do I apply for the Help to Buy scheme?
You apply through a Participating Lender, which assesses your eligibility and submits the application to Housing Australia on your behalf. You cannot apply directly to Housing Australia. You may also work with a mortgage broker, who can liaise with a Participating Lender for you.
Which lenders offer the Help to Buy scheme?
Only the Participating Lenders authorised by Housing Australia can offer it. When we checked on 1 October 2026, the official list showed six Participating Lenders, and the FAQ says the panel will be reviewed and updated over time. See the official list for the current names.
Is the Help to Buy scheme worth it?
It depends on your circumstances. It can lower the deposit and loan size you need and removes the need to pay Lenders Mortgage Insurance, but you share future gains and losses with the Government, must meet ongoing obligations and cannot rent the home out. Consider independent legal and financial advice before you commit.
Is there a Help to Buy scheme calculator?
Yes. The official site has a maximum property price calculator that estimates the purchase price you may be able to afford under the scheme, as well as an eligibility tool. Our own calculators page can help you test repayments and borrowing power on the loan portion.
Information checked on 1 October 2026 against the firsthomebuyers.gov.au Help to Buy pages (including the FAQ, price caps, income thresholds and Participating Lenders list) and a Housing Australia media release dated 28 November 2025. Policies, thresholds and lender participation may change. Confirm current eligibility, price caps and participation directly with your chosen Participating Lender before applying. This information is general in nature and does not take your objectives, financial situation or needs into account. Policies vary by lender and change frequently — confirm current requirements with your chosen provider and seek professional advice.
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