HOW IT WORKS
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Help to Buy Scheme: A Complete Guide
The Australian Government's Help to Buy scheme makes homeownership more accessible for eligible Australians by reducing deposit requirements and mortgage repayments through shared equity.
How the Scheme Works
1
Government Equity Contribution
The government contributes up to 40% of the purchase price for new homes and up to 30% for existing homes, effectively co-owning that portion of the property. This contribution reduces the buyer's mortgage and monthly repayments.
2
Minimum Deposit
Buyers can enter the property market with as little as 2% of the property’s value as a deposit, significantly lowering the barrier to homeownership.
3
No Lenders Mortgage Insurance (LMI)
Participants are exempt from paying LMI, saving buyers thousands of dollars. This exemption is typically reserved for deposits under 20%.
4
Reduced Mortgage Repayments
With a smaller loan due to the government’s equity contribution, monthly repayments become more manageable, reducing financial stress.
Eligibility Criteria
1
Income Limits
Singles must earn less than $90,000 per annum, while couples' combined income should be less than $120,000 per annum.
2
Citizenship and Age
Applicants must be Australian citizens and at least 18 years old.
3
Property Ownership
Applicants must not own any other property in Australia or overseas.
4
Owner-Occupier Requirement
The property must be the buyer's primary residence and cannot be used as an investment property.
Property Price Caps
Repaying the Government
1
Voluntary Contributions
Buyers can gradually buy back some or all of the government's share through voluntary payments.
2
Income Threshold Changes
If your income rises above the eligibility threshold, you may need to repay the government's share.
3
Property Sale
If the home is sold, the government recoups its share of the current market value, not the original contribution.
Example of Repayment
  • Purchase Price: $700,000
  • Government Share: 40% = $280,000
If the property value increases to $800,000, the government’s share becomes 40% of $800,000 = $320,000.
Combining Help to Buy with Other Schemes
First Home Owner Grant
The First Home Owner Grant provides financial support to eligible buyers purchasing or building their first home. The amount varies by state, typically ranging between $10,000 and $20,000 for new builds or homes that have not been previously occupied.
First Home Guarantee
The First Home Guarantee helps first-time buyers with as little as a 5% deposit by allowing them to avoid paying Lenders Mortgage Insurance (LMI). This scheme supports purchasing or building a new home without the need for a 20% deposit, making it easier to enter the property market.
Deposit Stacker Program
PublicSquare's Deposit Stacker Program maximizes your ability to secure a home by combining all available Government schemes, including Help to Buy, with an exclusive gift of up to $25,000 from PublicSquare—bringing your total assistance to as much as $60,000. Plus, they’ll help you discover your dream home from thousands of brand-new properties built by Australia’s top builders.
Is the Help to Buy Scheme Right for You?
Struggling to Save
Ideal for those finding it difficult to accumulate a large deposit.
Seeking Lower Repayments
Beneficial for buyers looking to reduce their monthly mortgage payments.
Comfortable with Shared Equity
Suitable for those who understand and accept the implications of co-ownership with the government.
Alternatives to Help to Buy
Rent-to-Buy
With this arrangement, tenants lease a property with the option to buy it in the future. Rent-to-Buy Homes by companies such as PublicSquare, enable you to move into a new home for just 1.1% of the home value and build up your deposit while you live in the property—eventually switching to a mortgage.
Traditional Financing with Government Grants
Buyers can combine home loans with grants like the First Home Owner Grant or stamp duty concessions for a more traditional route to ownership.
Application Process
1
Application Submission
Submit applications through participating banks or mortgage brokers working with Housing Australia.
2
Documentation
Provide proof of income, citizenship, and other financial details to verify eligibility.
3
Mortgage Approval
Secure a home loan with a participating lender, alongside the government's equity contribution.
4
Government Participation
The government's equity contribution will be outlined in the purchase agreement.
We acknowledge the Ngunnawal people as the Traditional Custodians of the land on which we operate. We pay our respects to their Elders, past, present, and emerging, and extend that respect to all Aboriginal and Torres Strait Islander peoples. We recognise their enduring connection to the land, waterways, and community, and we honour their cultural and spiritual practices that continue to enrich our shared heritage today.

Disclaimer: This website is for informational purposes only. Terms, conditions, and fees may apply, and the information provided here is subject to change based on state and federal regulations, as well as updates from government programs. This website is not government-owned or operated entity. Pre-approvals and related financial services will be provided exclusively by licensed mortgage brokers in compliance with applicable laws. Individuals and households are encouraged to conduct their own research into competitive options available in the market. Furthermore, seeking independent financial, legal, or other professional advice is recommended before making decisions related to home purchases, financing, or any associated programs. While every effort has been made to ensure the accuracy and timeliness of the information on this website, no guarantees are provided, and we disclaim liability for any inaccuracies or omissions. For the latest and most reliable information, consult the appropriate government or professional sources directly.