Updated: November 2026
The Australian Government Help to Buy Scheme is a shared-equity program designed to help eligible buyers purchase a home with a minimum 2% deposit.
The Australian Government may contribute up to 30% of the purchase price of an existing home or up to 40% of the purchase price of a newly built home. In return, the government receives a corresponding equity share in the property.
Help to Buy is different from the Australian Government 5% Deposit Scheme. It can reduce the size of the home loan required, but the buyer shares part of the property’s future value with the government.
If you are considering buying your first property, our First Home Buyer home loan service explains how CBM Mortgages can help you assess your deposit, borrowing capacity and suitable home loan options.
Help to Buy at a glance
| Feature | How it works |
|---|---|
| Minimum deposit | Eligible buyers need a minimum deposit of 2% of the purchase price. |
| Existing home contribution | The Australian Government may contribute up to 30% of the purchase price. |
| New home contribution | The Australian Government may contribute up to 40% of the purchase price. |
| Home loan | The buyer obtains a home loan from a participating lender for the remaining amount required. |
| Lenders Mortgage Insurance | Eligible Help to Buy participants do not pay Lenders Mortgage Insurance. |
| Government repayments | No regular rent or interest is charged on the government’s equity share. |
| Future property value | The value of the government’s share generally rises or falls with the property’s value. |
| Annual availability | The scheme currently provides 10,000 places each year. |
Eligibility requirements, income limits, property-price caps, participating-lender rules and ongoing obligations apply.
Check the current information on the official Australian Government Help to Buy Scheme website.
How Help to Buy works
Help to Buy combines three funding sources:
- The buyer contributes a minimum 2% deposit.
- A participating lender provides an approved home loan.
- The Australian Government contributes up to 30% for an existing home or up to 40% for a newly built home.
The buyer owns and occupies the property, but the Australian Government holds an equity interest that corresponds with its contribution.
The government’s contribution reduces the home loan required from the participating lender. This may produce lower regular loan repayments than the buyer would have with a larger home loan and no shared-equity contribution.
However, the government remains entitled to the value of its equity share when that share is repaid or the property is sold.
A Help to Buy example
Consider an eligible buyer purchasing an existing home for $600,000.
| Purchase component | Example amount |
|---|---|
| Buyer’s 2% deposit | $12,000 |
| Government contribution of 30% | $180,000 |
| Home loan from a participating lender | $408,000 |
| Total purchase price | $600,000 |
This is an illustration only. A $12,000 deposit applies to this particular $600,000 example and should not be interpreted as the deposit required for every Help to Buy purchase.
The buyer would remain responsible for the home loan, interest, lender fees, transfer duty where applicable, legal or conveyancing costs, inspections, insurance, settlement adjustments and ongoing ownership expenses.
Who may qualify for Help to Buy?
Help to Buy may assist eligible first home buyers and some people returning to home ownership.
Current eligibility requirements include criteria relating to:
- the buyer’s age and residency status;
- the buyer’s taxable income;
- current and previous property ownership;
- the minimum deposit;
- the property’s purchase price and location;
- the buyer’s ability to obtain an eligible home loan;
- living in the property as a principal place of residence; and
- the maximum amount the buyer can reasonably contribute towards the purchase.
Applicants can apply alone or jointly with one other person, provided all applicants meet the relevant requirements.
Help to Buy income limits
The current annual taxable-income limits are:
- $103,000 or less for an individual applicant; or
- $165,000 or less for joint applicants or a single parent.
Income is assessed using the Australian Taxation Office Notice of Assessment for the relevant financial year. These limits are indexed annually, so buyers should check the current figures before applying.
Meeting the scheme’s eligibility criteria does not guarantee home loan approval. The participating lender must still assess the buyer’s income, debts, expenses, credit history and ability to repay the proposed home loan.
Help to Buy property-price caps
The property must be priced at or below the Help to Buy cap for its location.
Different caps apply across states, territories, capital cities, regional centres and other regional locations. Buyers should check the applicable cap before relying on the scheme for a particular property.
The property may be an existing home or an eligible newly built home. It must become the buyer’s principal place of residence rather than an investment property.
Use the official Help to Buy tools and resources to confirm the current eligibility and property requirements.
Potential benefits of Help to Buy
Possible benefits include:
- purchasing with a minimum 2% deposit;
- a smaller home loan because of the government’s contribution;
- lower regular loan repayments than may apply without shared equity;
- no Lenders Mortgage Insurance;
- the ability to purchase an eligible existing or newly built home; and
- no regular rent or interest charged on the government’s equity share.
The benefit will depend on the buyer’s income, deposit, property, home loan and long-term plans.
Risks and trade-offs to consider
Help to Buy can reduce the deposit and home loan required, but shared equity creates long-term obligations.
Important considerations include:
- the Australian Government holds an equity share in the home;
- the value of the government’s share can increase if the property value rises;
- the government participates proportionally in a decrease in the property’s value;
- the buyer may need approval or a valuation for certain major changes to the property;
- the buyer must continue meeting the scheme’s ongoing occupancy and eligibility obligations;
- participating-lender choice may be more limited than the broader home loan market;
- the government share must eventually be repaid; and
- buying back the government share may require savings, refinancing or sale of the property.
A buyer should consider the future cost of repurchasing the government’s share, not only the smaller initial home loan.
How is the government share repaid?
The Australian Government’s equity share can generally be repaid through an approved voluntary buyback, when required under the scheme rules or when the property is sold.
The repayment is not necessarily limited to the government’s original dollar contribution. The amount is ordinarily based on the government’s proportional share of the property’s value when the equity is repaid.
For example, if the government holds a 30% equity share and the property increases in value, the amount required to repay that 30% share would ordinarily increase. If the property decreases in value, the value of the government share would ordinarily decrease proportionally.
Buyers should review the current buyback, valuation and sale rules before entering the scheme.
Renovating a Help to Buy property
Routine repairs and maintenance are different from major improvements that may materially affect the property’s value.
Major renovations may require notice, approval or valuations under the scheme rules. Valuations can help distinguish between general market growth and value created through improvements funded by the homeowner.
Buyers planning substantial renovations should check the applicable Help to Buy requirements before starting work or committing to building contracts.
Help to Buy compared with the 5% Deposit Scheme
| Feature | Help to Buy | 5% Deposit Scheme |
|---|---|---|
| Minimum deposit | 2% | 5% for eligible first home buyers |
| Government support | Shared-equity contribution | Guarantee provided to a participating lender |
| Government ownership interest | Yes | No |
| Home loan size | Reduced by the government equity contribution | The buyer generally borrows the remaining purchase amount after the deposit |
| Income limits | Yes | No income caps under the current rules |
| Lenders Mortgage Insurance | Not payable by eligible participants | Not payable by eligible participants |
Neither scheme is automatically better. The appropriate pathway depends on eligibility, borrowing capacity, property choice and whether the buyer is comfortable sharing future property value with the Australian Government.
Read our guide to the Australian Government 5% Deposit Scheme for a more detailed comparison.
Can Help to Buy be combined with other assistance?
Some other home-buying assistance may be available alongside Help to Buy, subject to the rules of each program.
Potential assistance may include:
- the First Home Owner Grant;
- state or territory transfer-duty concessions;
- the First Home Super Saver Scheme; or
- other assistance available in the buyer’s location.
Eligibility must be checked separately for each program. Receiving one benefit does not automatically establish eligibility for another.
Our Australian first-home-buyer schemes guide provides an overview of the main programs.
NSW buyers can also review our guide to first home buyer grants and transfer-duty assistance in NSW.
Costs Help to Buy may not cover
Although Help to Buy can reduce the deposit and home loan required, buyers still need to budget for other costs.
These may include:
- the minimum deposit;
- transfer duty where an exemption or concession does not apply;
- conveyancing or legal fees;
- building and pest inspections;
- loan application, valuation or settlement fees where applicable;
- insurance;
- council rates, water and strata adjustments;
- moving expenses; and
- ongoing repayments, maintenance and ownership costs.
Review the upfront costs of buying your first home in Sydney when preparing your purchase budget.
How to apply for Help to Buy
Help to Buy applications are made through a participating lender.
A practical process is:
- Review the current Help to Buy eligibility requirements.
- Check the income limit and property-price cap for the intended location.
- Estimate the deposit, borrowing capacity and purchase costs.
- Compare suitable participating lenders and eligible home loans.
- Prepare the required identification, income and financial documents.
- Complete the scheme and home loan application through a participating lender.
- Confirm the property meets the scheme and lender requirements before committing to the purchase.
Pre-approval is not unconditional approval. The participating lender will ordinarily need to assess the selected property, supporting documents and final application.
How CBM Mortgages can help
CBM Mortgages can help you assess how Help to Buy may fit with your deposit, borrowing capacity and home loan application.
We can help you:
- estimate your borrowing capacity and likely repayments;
- review your deposit and upfront purchase costs;
- understand participating-lender requirements;
- compare eligible home loan options;
- prepare documents for the application; and
- work through pre-approval, purchase and settlement.
The Australian Government determines Help to Buy eligibility and scheme rules. Participating lenders make their own credit decisions. CBM Mortgages can assist with the home loan component and help identify issues before you make an offer.
Considering Help to Buy? Visit our First Home Buyer home loan service or contact CBM Mortgages to discuss your deposit, borrowing position and participating-lender options.
Frequently asked questions
Disclaimer: This article provides general information only and does not constitute personal financial, legal, tax or credit advice. Help to Buy rules, income limits, property-price caps, participating lenders and eligibility requirements can change. Check current official information and consider obtaining advice appropriate to your circumstances before acting.
