What Is the Help to Buy Scheme?
Help to Buy is a federal government shared equity program introduced by the Labor government. Under the scheme, the Australian government co-purchases a share of your home alongside you — up to 40% for a new build or 30% for an established property. This significantly reduces your required mortgage and deposit.
🏛️ Help to Buy — Key Numbers
Government equity contribution: Up to 40% (new), up to 30% (established)
Minimum deposit: 2% of the purchase price
Income limits: $90,000 (singles), $120,000 (couples/single parents)
Property cap (Sydney/NSW): $950,000
No LMI: The government's equity stake replaces the need for LMI
No rent on government share: You don't pay rent or interest on the government's portion
The scheme is administered by Housing Australia. For the most current eligibility information, visit the Housing Australia Help to Buy page.
How Help to Buy Works in Practice
Here is a worked example for a Sydney buyer using Help to Buy on a $900,000 established property:
| Without Help to Buy | With Help to Buy (30%) | |
|---|---|---|
| Property price | $900,000 | $900,000 |
| Government equity contribution | — | $270,000 (30%) |
| Your deposit (2%) | $180,000 (20% to avoid LMI) | $18,000 (2%) |
| Your mortgage | $720,000 | $612,000 |
| Monthly repayment (5.7%, 30yr P&I) | ~$4,175 | ~$3,545 |
| Monthly saving | ~$630/month | |
The government's 30% equity stake means you only need a $612,000 mortgage — not $720,000. This reduces monthly repayments by approximately $630 per month and the deposit required from $180,000 to just $18,000.
When you sell or refinance to buy out the government's share, you pay back the same percentage of the property's value at the time — not the original dollar amount. If the property appreciates from $900,000 to $1.1M, you would pay back $330,000 (30% of $1.1M) rather than the original $270,000.
Who Qualifies for Help to Buy?
Eligibility requirements for Help to Buy in 2026:
- Income limits: $90,000 gross income for singles; $120,000 for couples or single parents. These are annual income caps and apply to the taxable income in the most recent financial year.
- First home buyer status: You must not currently own residential property in Australia. However, if you have previously owned property but no longer do, you may still qualify — check with your broker.
- Australian citizen or permanent resident: Temporary visa holders are not eligible.
- Property price cap: $950,000 in NSW (including Sydney). The property must be in Australia.
- Owner-occupier: The scheme is for properties you will live in — not investment properties.
- Participating lender: The loan must be through a bank that participates in the scheme.
💡 Income Cap Comparison
The income caps for Help to Buy ($90K singles, $120K couples) are lower than the First Home Guarantee (no income cap since October 2025). This means many dual-income professional households will find the First Home Guarantee more accessible. Help to Buy is specifically designed for lower-to-middle income buyers who struggle to save a large deposit.
Help to Buy vs First Home Guarantee: Which Is Better?
Both schemes help first home buyers enter the market without a large deposit and without LMI. But they work differently and suit different buyer profiles:
| Feature | Help to Buy | First Home Guarantee |
|---|---|---|
| Minimum deposit | 2% | 5% |
| Government role | Co-owner (equity stake) | Guarantor only (no ownership) |
| Income limit | $90K singles / $120K couples | No limit (from Oct 2025) |
| Sydney price cap | $950,000 | $1,500,000 |
| Mortgage size | Smaller (you borrow less) | Larger (you borrow full price minus 5%) |
| Property gain on sale | Shared with government | All yours |
| Selling requirement | Repay government share at market value | No restriction |
See our First Home Guarantee NSW 2026 complete guide for full details on that scheme.
How to Apply for Help to Buy
The Help to Buy application process involves several steps:
- Check eligibility: Confirm your income, citizenship status, and property ownership history. A mortgage broker can do this in minutes.
- Apply through a participating lender: Not all banks participate. Your broker identifies which participating lenders have the best rates and terms.
- Property search within the price cap: The $950,000 NSW cap limits options in Sydney but covers much of Western Sydney, the South West, and some apartment markets.
- Housing Australia approval: The government must approve its equity contribution before settlement.
- Settlement: The government and you both complete the purchase simultaneously. The title is in your name — the government holds an equity interest, not a co-ownership title per se.
For further comparisons and first home buyer resources, our partners at Home Loans Hub maintain updated scheme guides.
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📅 Book a Free Call Get in Touch →Frequently Asked Questions
Help to Buy is a federal government shared equity scheme where the government co-purchases up to 30–40% of your home, reducing your required deposit to just 2% and your mortgage size significantly. You pay no rent on the government's share but repay its percentage of the property value when you sell or buy out the government's stake.
They suit different buyer profiles. Help to Buy requires only a 2% deposit and is better for low-to-moderate income earners who need the smallest possible mortgage. The First Home Guarantee requires 5% but has no income cap (since October 2025), covers properties up to $1.5M in Sydney, and lets you keep 100% of any capital gain. Most middle-income professional couples will find the First Home Guarantee more suitable.
The income limits are $90,000 gross annual income for single applicants and $120,000 for couples or single parents. These are assessed on your most recent tax return. Couples where both partners earn over $60,000 each may exceed the $120,000 combined cap.
The NSW property price cap for Help to Buy is $950,000. This covers most of Western Sydney, South-West Sydney, and units across the city, but excludes many houses in the Inner West, Eastern Suburbs, Northern Beaches, and Lower North Shore. For higher-priced areas, the First Home Guarantee ($1.5M cap) is more useful.
Yes. When you sell or refinance to buy out the government's share, you repay the government's percentage of the property's value at that time — not the original dollar amount. If your $900,000 property grows to $1.2M and the government owned 30%, you repay $360,000 at the time of sale (30% of $1.2M), not the original $270,000.