Help to Buy scheme

Who will be eligible for Help to Buy?

To take advantage of this scheme, buyers must meet these criteria:

• Australian citizen aged at least 18 years old
• Earn $100,000 a year or less. For a couple, it's capped at $160,000 combined.
• Live in the home for at least 12 months.
• You can't currently own any land or property.
• You need to pay for stamp duty (although first home buyers may qualify for exemptions or discounts).
• You also have to pay all other normal home buying costs, and get approved for a home loan with a lender.
• The price of the property you are buying needs to fall under the price cap for your region (see table below).

Help to Buy: Property price caps

There's a price cap in place with this scheme. This means that to be eligible to access the scheme, your property's purchase price needs to be at or below the threshold.

Every city and region has a different price cap, reflecting the differences between various property markets in Australia.

Finder survey: Do Australians know about the government schemes and incentives for buying a home?

What else do we know about the Help to Buy scheme?

• Through the National Housing Finance and Investment Corporation (NHFIC), the Australian government would provide equity of up to:
  • 40% of the purchase price for new homes
  • 30% of the purchase price for existing homes
• Applicants would need a minimum of a 2% deposit and must finance the remainder of the purchase through a standard home loan.
• During the loan period, the applicant would be able to buy back equity from the government at market value in increments of at least 5%.
• Applicants who exceed the income thresholds for 2 consecutive years after being accepted into the scheme would be required to buy back the remaining equity from the government in part or in whole.

How does the Help to Buy scheme benefit buyers?

The scheme allows buyers to enter the market with small deposits. But while most buyers with low deposits get hit with high borrowing costs and lenders mortgage insurance premiums, under the Help to Buy scheme you can avoid both.

The government covers part of your costs so you have to borrow less. And because the government's contribution effectively boosts your deposit size, you avoid LMI – which could be over $30,000 depending on the purchase price and deposit size.

This can save you quite a bit. Here are 2 hypothetical examples using the same figures as above.

The difference here is significant: around $900 a month in repayments, and a saving of over $20k in LMI.

How does Help to Buy compare to other buyer support policies?

There are many first home buyer support policies from state and federal governments. Most of these policies help Australians enter the market with the following:

• A cash grant: Schemes like first home owners grants give cash directly to eligible first home buyers.
• $0 or discounted stamp duty: Some state or territory governments offer first home buyers exemptions to stamp duty or discounted stamp duty.
• A low deposit home loan with $0 LMI: The First Home Loan Deposit Scheme and New Home Guarantee are federal schemes that let buyers avoid LMI costs while buying with a low deposit.

Other schemes include the First Home Guarantee Scheme and New Home Guarantee. The Help to Buy Scheme is different in that it is not only available to first home buyers, but to anyone who does not currently own property.

It is also unique in that the government is essentially co-buying the property with you. This is because it is a shared equity scheme. The most similar policy is the Victorian government's Homebuyer Fund. In this state scheme, you can buy with a 5% deposit and the state government contributes up to 25% of the price.

The NSW government has also launched a shared equity scheme with similar criteria.

Our expert says

"Being eligible for a home buying scheme doesn't you can get the loan or the home you want. Banks and lenders will still look at whether you can service the loan, and so buying that $1.3 million property in Sydney might still be out of reach for some.

But, this can still be a great scheme. While we're waiting for the scheme to begin, work out your borrowing power, research property prices, do all the calculations, and speak to a mortgage broker if you need any support."

Rebecca Pike

Senior Money Writer

When can I apply for the Help to Buy scheme?

The Help to Buy scheme was approved in Senate on 26th November 2024 and we're still waiting for more information on applying. The government most recently suggested it would begin later in 2025.

If the Help to Buy Scheme follows the same approach as the First Home Guarantee Scheme, the buyers will need to apply for a home loan with a lender participating in the scheme first.

How can I apply for the Help to Buy scheme?

There are no official details yet on how to apply for the Help to Buy scheme, but it would be through Housing Australia, like the Home Guarantee Scheme. Other programs include:

• The First Home Guarantee (formerly known as the First Home Loan Deposit Scheme)
• The Regional First Home Buyer Guarantee
• The Family Home Guarantee

Frequently Asked Questions

• What does it mean if the government owns 40% of your house?

  This means the federal government owns part of your home equity. Eventually, the equity share will need to be repaid to the government, either over time or when the property is sold.

• Can I use my super to buy a house?

  The only way to withdraw super to use to buy a house to live in, is through the First Home Super Saver. This requires you to make voluntary contributions in addition to your employer guarantee super contributions. You can then withdraw these voluntary contributions plus associated earnings, to use as a property deposit.

• What is the first time buyer grant in Australia?

  The First Home Owner Grant (FHOG) varies by state and territory, but it is designed to help first-time buyers get into their first home. For instance, Queensland offers $15,000 for new homes priced under $750,000. In other states, the grant amount and property value cap differ.

Written by

Richard Whitten

Money Editor

Richard Whitten is Finder’s Money Editor, with over seven years of experience in home loans, property and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Graduate Certificate in Communications from Deakin University. See full bio

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Richard has written 609 Finder guides across topics including:

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