Help to Buy
Scheme.
The Help to Buy Scheme lets eligible Australians purchase a home with just a 2% deposit — the government co-invests up to 40% for new homes and 30% for existing homes, reducing your loan and monthly repayments.
How the Scheme Works
Instead of saving a large deposit and taking on a massive mortgage, the Australian Government co-purchases with you — reducing your loan size and eliminating LMI costs entirely.
Example: $600,000 New Home
The minimum you need from your own savings to enter the scheme.
The government's equity share — no interest or rent is charged on this portion.
Significantly reduced mortgage — lower monthly repayments and no LMI required.
No LMI: Normally a low deposit triggers Lenders Mortgage Insurance (LMI), which can add $10,000–$15,000 to your costs. Under Help to Buy, you are fully exempt from LMI — saving you money upfront and on interest.
Eligibility
Eligibility is assessed on an individual basis. You must be an Australian citizen who genuinely intends to live in the property as your primary residence.
You Must
- ✓Be an Australian citizen aged 18 or older
- ✓Not currently own any property in Australia or overseas
- ✓Have the home as your principal place of residence
- ✓Contribute the maximum reasonable deposit you can afford (minimum 2%)
- ✓Meet all income thresholds based on your most recent ATO Notice of Assessment
- ✓Not be receiving another Australian Government shared equity scheme, loan, or guarantee for the same purchase
Income Thresholds
Thresholds are updated each year on 1 July based on your most recent Notice of Assessment.
Eligible Property Types
- ✓ Houses
- ✓ Townhouses
- ✓ Apartments or units
- ✓ Duplexes
- ✓ Vacant land for constructing a new home
- ✓ Properties being demolished and rebuilt (with eligible build contract)
Property Price Caps by State
Single Parent Provisions
The scheme includes tailored support for single parents. A single parent is someone without a spouse or de facto partner who has at least one dependent child.
How to Apply
The application process is managed through a Participating Lender and Housing Australia. The order matters — follow these steps carefully.
Pre-approval window
Your Help to Buy place is reserved for 90 days, aligned with your loan pre-approval. A 90-day extension is available if needed (not guaranteed).
Contract settlement gap
Contracts must allow at least 30 days between signing and settlement. Ensure your lender has all documents at least 29 days prior to settlement.
Home insurance
Home insurance is mandatory under Help to Buy and must be arranged before settlement. Factor premiums into your overall affordability calculations.
Repaying the Government's Share
You will eventually need to repay or buy back the government's equity — but you have flexible options and are never charged interest or rent on their share.
Your Buy-Back Options
Example: Incremental Buy-Back
After buy-back: You own 75%, Government owns 25%. Continue buying back in 5% increments at your own pace.
What Counts as Income
Included in assessment
NOT included in assessment
Forced repayment: If your income exceeds thresholds for two consecutive years, Housing Australia will work with you to determine an affordable repayment plan — possibly through refinancing.
Construction & New Builds
Help to Buy can support building a new home or purchasing off-the-plan. Your building contract must meet specific eligibility requirements.
Contract Requirements
- ✓Include a fixed price for both land and construction, within the price cap
- ✓Signed with a licensed and registered builder who is not related to you
- ✓Include all mandatory residential construction insurance requirements
- ✓Entered into on an arm's length basis (not with a related party)
- ✓Ensure the builder delivers a fully completed, move-in-ready home
- ✓Comply with approved plans, council requirements, and national construction standards
Construction Timeframes
Managing Cost Overruns
The Government can contribute additional funds, but only up to the maximum 40%. Consider setting aside an optional <strong style={{ color: "#000000" }}>5% buffer from your savings</strong> to cover potential overruns without increasing your loan or the Government's contribution.
Making Contract Changes
Changes are allowed if the revised contract results in a substantially similar home and the new price stays within the area's price cap. Provide at least <strong style={{ color: "#000000" }}>21 days' notice</strong> to Housing Australia before approving any changes.
Help to Buy vs First Home Guarantee
Frequently Asked Questions
Everything you need to know about the Help to Buy Scheme.