Help to Buy scheme: how it works and who can use it
Last checked
As at Next checkHelp to Buy is an Australian Government shared equity scheme. The government pays part of the price and owns that share.
Changed in 2026: the income caps rose from 1 July 2026, to $103,000 single and $165,000 joint or single parent.[6]
- Your deposit: at least 2% of the price
- Government share: up to 40% of a new home, 30% of an existing one
- Places: 10,000 a year
- Income caps and property price caps apply
Help to Buy at a glance
| Item | Detail | Source |
|---|---|---|
| Government share # | Up to 40% of the price for a new home; up to 30% for an existing home. At least 5%. | [1] [5] |
| Your deposit # | At least 2% of the price. | [1] |
| Income caps (2026-27) # | Taxable income up to $103,000 for a single applicant, $165,000 combined for joint applicants and $165,000 for a single parent. Raised from 1 July 2026. | [2] [6] |
| Who can apply # | Australian citizens aged 18 or over who do not own property in Australia or overseas, buying a home to live in. Permanent residents are not eligible. | [1] |
| Places # | 10,000 a year. Applications opened on 5 December 2025. | [1] [6] |
Wondering if Help to Buy could work for you? Zafar can check the rules against your situation.
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What are the Help to Buy property price caps?
The price of the home must be at or below the cap for where it is. Housing Australia says the caps are not indexed and change only by government decision. Check the cap for the suburb and postcode you are buying in.[3][2]
| State or territory | Capital city and regional centres | Rest of state |
|---|---|---|
| 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 | n/a |
| Northern Territory # | $600,000 | $600,000 |
How is the government's share repaid?
The government's share is a percentage of the home, so what you repay moves with the home's value. Every repayment is worked out on the value at the time you pay.[1]
- When you sell, the government receives its percentage of the home's value at the time of sale.[4]
- Voluntary repayments: you can buy back part of the share. Each repayment must reduce it by at least 5% of the property value, or repay it in full.[5]
- If your income goes over the cap for two financial years in a row, you may have to repay some or all of the share. The lender first assesses whether you can afford to. The Program Directions then require at least 5% of the property value within 90 days.[4][5]
Help to Buy or the 5% Deposit Scheme?
The two schemes work differently. With Help to Buy, the government owns part of your home, so you borrow less. With the 5% Deposit Scheme, you own all of your home and borrow most of the price, without paying lenders mortgage insurance.
| Help to Buy | 5% Deposit Scheme | |
|---|---|---|
| Minimum deposit # | 2% | 5% (2% for eligible single parents) |
| How it helps # | The government pays part of the price and owns that share | No lenders mortgage insurance on a low-deposit loan |
| Income caps # | Yes ($103,000 single, $165,000 joint) | None |
| Who can apply # | Australian citizens | Australian citizens and permanent residents |
| Places # | 10,000 a year | Unlimited |
Which lenders offer Help to Buy, and can Zafar arrange it?
Only participating lenders can offer Help to Buy; Housing Australia publishes the current list. Housing Australia's FAQ says you can use a mortgage broker, who deals with a participating lender for you.[4] Ask Zafar which lenders on his panel currently offer the scheme.
Disadvantages of Help to Buy
- The government shares in any rise in the home's value, so buying back its share later can cost more than it paid.
- If your income rises above the cap for two years in a row, you may be asked to start repaying the share.
- Places are limited each year and only participating lenders can offer the scheme.
- Zafar compares loans from his lender panel, not the whole market.
General information only. It does not take into account your objectives, financial situation or needs, and it is not a recommendation to enter into any credit contract. Eligibility is decided by the scheme administrator and the lender.
What changed
- : Applications for Help to Buy opened.[1][6]
- : Income caps raised for 2026-27: $103,000 single, $165,000 joint or single parent.[2][6]
Page history: first published . Every figure checked against the official pages listed below on .
Wondering if you may be eligible?
Zafar can check the scheme rules against your situation and talk you through it.
Ask Zafar about Help to Buy Call 0402 357 860
Sources
- Housing Australia (firsthomebuyers.gov.au), Australian Government Help to Buy Scheme. Retrieved .
- Housing Australia (firsthomebuyers.gov.au), Help to Buy income and property thresholds. Retrieved .
- Housing Australia (firsthomebuyers.gov.au), Help to Buy property price caps. Retrieved .
- Housing Australia (firsthomebuyers.gov.au), Help to Buy: frequently asked questions. Retrieved .
- Federal Register of Legislation, Help to Buy Program Directions 2025 (as made). Retrieved .
- Housing Australia, More Australians set to benefit as Help to Buy expands from 1 July 2026. Retrieved .
- Housing Australia (firsthomebuyers.gov.au), Help to Buy participating lenders. Retrieved .
Common questions
How much deposit do I need for Help to Buy?
At least 2% of the purchase price. The government can then contribute up to 40% of the price of a new home or up to 30% of an existing home.
What are the Help to Buy income caps?
For 2026-27, taxable income up to $103,000 for a single applicant and $165,000 for joint applicants or a single parent.
What does it mean if the government owns 30% of my home?
The government holds a 30% equity share in the home, and you own the rest. You do not pay interest on its share. The share rises or falls with the home's value. When you sell, the government receives its percentage of what the home is worth then. You can also buy back part or all of it before then.
Can permanent residents use Help to Buy?
No. All applicants must be Australian citizens. The 5% Deposit Scheme, by contrast, is open to citizens and permanent residents.
Talk to Zafar
Call Zafar, request a call back or send a message. Zafar works with clients across Australia by phone and video, and meets clients in person in Melbourne.