We wrote about Help to Buy when it was still waiting on legislation. It's now been running since 5 December 2025, so this is the practical version: how it works day to day, who it suits, and the questions we ask clients before suggesting it.
The short version
Help to Buy is a shared equity scheme. The Australian Government contributes part of the purchase price in exchange for the same share of ownership in your home.
- New homes: the government can contribute up to 40%
- Existing homes: up to 30%
- Your deposit: as little as 2%
- LMI: none
Because the government's share isn't a loan you repay monthly, your mortgage is much smaller. On a new home with a 40% contribution and your 2% deposit, you'd only borrow 58% of the price.
Who can apply
The main tests are:
- Australian citizen, aged 18 or over
- Taxable income of $100,000 or less for singles, or $160,000 or less for couples and single parents (these figures are indexed each 1 July)
- You don't own any other property, in Australia or overseas
- You'll live in the home as your main residence
Help to Buy isn't strictly only for first home buyers. Someone who sold a home years ago and hasn't owned since may still be eligible.
Price caps
The caps for 2025–26 vary by area. In Sydney and NSW regional centres the cap is $1,300,000. Other capitals include Melbourne at $950,000, Brisbane at $1,000,000 and Adelaide at $700,000. Caps are lower in regional areas, so check the exact figure for your location with Housing Australia.
What the numbers look like
Take a new $750,000 townhouse.
| Amount | |
|---|---|
| Government contribution (40%) | $300,000 |
| Your deposit (2%) | $15,000 |
| Your home loan (58%) | $435,000 |
At an example variable rate of 6.49% over 30 years, a $435,000 loan costs roughly $2,750 a month. Borrowing $735,000 for the same home with a 2% deposit, if a lender even allowed it, would cost around $4,640 a month before LMI.
That gap is why Help to Buy can get people into a home years earlier.
The trade-offs
Shared equity means you share the growth, and the loss.
When you sell, the government gets its share of the sale price. If the property rises from $750,000 to $900,000, a 40% share is now worth $360,000, not $300,000.
You can buy the government out over time. You can make voluntary repayments in chunks of at least 5% of the home's current market value. Many owners do this as their income grows.
Your income is reviewed. If your income goes over the cap for two consecutive years, you may be required to start buying back the government's share.
Renovations and selling need approval. Major changes, refinancing and sale all have conditions. Read the Housing Australia program directions or let us walk you through them.
Limited lenders and limited places. Only a small number of lenders were on the panel in mid-2026, and the scheme offers up to 10,000 places a year. Rates and policies on the panel matter, so compare before you commit.
Help to Buy or the 5% Deposit Scheme?
You can't use both on the same purchase, so this is usually the big decision.
Help to Buy tends to suit you if: - Your income is within the caps but too low to borrow 95% of a home's price - You want the lowest possible repayments now - You're comfortable sharing future growth
The 5% Deposit Scheme tends to suit you if: - Your income can comfortably support a 95% loan - You want to own 100% of your home and keep all the growth - You're buying above the Help to Buy price caps
For many Sydney couples earning above $160,000, the 5% Deposit Scheme is the only one available anyway. Read more in our 5% Deposit Scheme guide.
Steps to apply
- Check your income against the caps using your most recent notice of assessment.
- Speak with a broker about participating lenders and your borrowing capacity.
- Get pre-approval for both the home loan and the Help to Buy contribution.
- Find a property under the cap for your area.
- Settle with the government's share registered on title.
Frequently asked questions
Do I pay rent or interest on the government's share?
No. There are no ongoing fees or interest on the government's equity. You pay it back when you sell, or earlier if you choose to buy it out.
Can I use Help to Buy with the First Home Owner Grant or stamp duty concessions?
State concessions and grants can often be used alongside Help to Buy, depending on the state rules. The federal 5% Deposit Scheme can't be combined with it.
Is Help to Buy available in every state?
Not at launch. Western Australia and Tasmania weren't participating as of mid-2026. Check the current list before planning around it.
Want to know whether Help to Buy or the 5% Deposit Scheme leaves you better off? Call Finfident on 0424 545 654. We'll run both side by side using your real numbers.
This article is general information only and doesn't take into account your objectives, financial situation or needs. Figures, rates and scheme rules are current as at October 2026 and can change. Finfident Finance Brokers (ABN 94 679 280 801) is Credit Representative 569374 of Outsource Financial Pty Ltd (ACN 131 090 705), Australian Credit Licence 384324.