Page up to date as of 24 March 2025
The Help to Buy is an upcoming shared equity scheme set to support 40,000 Australian households to purchase a new or existing home with an equity contribution from the government.
The Help to Buy scheme was introduced by the Labor government in 2022 and is expected to launch in late 2025. Similar to previous state initiatives – VIC HomeBuyer Fund and WA HomeShare Scheme – the scheme will see the federal government make a contribution of up to 40% in exchange for a share, or proportional interest in the property.
What is the Help to Buy scheme and how does it work?
The Help to Buy scheme is a shared equity scheme that will allow eligible home buyers to purchase a property with a smaller deposit.
The scheme works buy allowing buyers with a deposit of at least 2% to obtain a loan with an equity contribution from the federal government.
The size of the equity contribution can vary from up to 30% for an existing home to 40% for a new home. This aims to assist prospective home owners to enter the property market sooner than they would otherwise have been able, thanks to the smaller deposit requirements. It will also allow these home buyers to benefit from a smaller mortgage and smaller repayments.
While those on the scheme are not required to pay rent on the portion of the home owned by the government, it is expected that the government’s equity contribution be paid down over time, or when the property is sold.
The Labor government has announced a total of 10,000 places will be available on the Help to Buy scheme for four years.
What is the eligibility criteria for the Help to Buy scheme?
In order to be eligible for the Help to Buy scheme, the following criteria apply:
- You must be an Australian citizen
- You must be at least 18 years of age
- You must have a yearly income of $100,000 or less, or $160,000 or less for a couple
- You must live in the purchased home
- You must not currently own any other land or property either in Australia or overseas
- You must have saved the required minimum 2% deposit of the home price and be able to finance the remainder through a participating lender.
- You must be able to manage all associated costs up front including stamp duty, legal feels and bank fees.
Property price caps by region
|
Area |
Cap |
|
New South Wales – capital city and regional centre |
$1,300,000 |
|
New South Wales – other |
$800,000 |
|
Victoria – capital city and regional |
$950,000 |
|
Victoria – other |
$650,000 |
|
Queensland – capital city and regional centre |
$1,000,000 |
|
Queensland – other |
$700,000 |
|
Western Australia – capital city |
$850,000 |
|
Western Australia – other |
$600,000 |
|
South Australia – capital city |
$900,000 |
|
South Australia – other |
$500,000 |
|
Tasmania – capital city |
$700,000 |
|
Tasmania – other |
$550,000 |
|
Australian Capital Territory |
$1,000,000 |
|
Northern Territory |
$600,000 |
|
Jervis Bay and Norfolk Island |
$550,000 |
|
Christmas Island and Cocos (Keeling) Islands |
$400,000 |
