The short answer
With Help to Buy, the Australian Government contributes up to 30% of the price of an existing home, or up to 40% of a new home, in exchange for a matching share of the property. You need a deposit of at least 2% and a home loan from a participating lender for the rest. When you sell, or buy out the government’s share, it’s repaid at the property’s value at that time.
How Help to Buy works
- You save a deposit of at least 2% of the purchase price.
- The government contributes between 5% and 30% for an existing home, or between 5% and 40% for a new home, depending on your situation.
- You borrow the rest with a home loan from a participating lender.
- You live in the home and can buy out the government’s share over time, as you can afford it.
- When you sell, the government’s share is repaid at the property’s value then.
Who may be eligible
- You’re at least 18, and all applicants are Australian citizens.
- You don’t own, or beneficially own, any property in Australia or overseas (there are limited exceptions for single parents).
- Your taxable income, from last financial year’s Notice of Assessment, is within the limit: for 2026–27, $103,000 for a single applicant, or $165,000 for single parents and joint applicants. The limits are indexed each 1 July.
- You’ll live in the home as your principal place of residence while you’re in the scheme. It can’t be an investment or rented out.
- The property is within the scheme’s price cap for its location. Caps are set by the government, so check the current figure before you look.
There are 10,000 places each year, and you apply through a participating lender, not directly to Housing Australia.
The government’s share, gains and losses
Because the government owns a share, it shares proportionally in any rise or fall in the property’s value. If you buy out its share, or sell, the amount is worked out on the property’s value at that time, not the original price. While you’re in the scheme, you also keep meeting the conditions, maintain and insure the home, and take part in reviews.
Help to Buy or the 5% Deposit Scheme?
They solve different problems. The 5% Deposit Scheme lets eligible first home buyers buy with a 5% deposit without paying lenders mortgage insurance, but you borrow most of the price yourself. Help to Buy reduces how much you borrow, because the government owns part of the home, in exchange for sharing in its value. Which suits you depends on your income, deposit, the property and your plans. We can walk through both.
Things to weigh up
- A smaller loan can mean lower repayments, but you won’t own 100% of the home until you buy out the government’s share.
- Buying out later costs more if the property’s value has risen.
- Conditions continue while you’re in the scheme, including living in the home.
- Participating lenders are limited, so your loan choice is narrower.
Figures and rules from the Australian Government’s First Home Buyers site (firsthomebuyers.gov.au), read 8 November 2026. Rules, income limits and price caps change, so confirm the current details there or with us before you decide. General information only.
Mortgage broker at My Finance Consultants. Daniel compares home loan options from a panel of 40+ lenders for refinancers, investors and home buyers, by phone or video, evenings included. About Daniel
General information only. It doesn’t consider your objectives, financial situation or needs, and it isn’t tax, legal or financial product advice. Lending criteria, fees and charges apply.