Australian Government Help to Buy Scheme: Making Home Ownership More Accessible

Your Blueprint to Buying Sooner: Understanding the Australian Government's Help to Buy Scheme

Great news for aspiring homeowners across Australia! The Australian Government's Help to Buy Scheme is officially launching on December 5, 2025, offering a groundbreaking shared equity initiative designed to help more Australians bridge the gap between their savings and the home of their dreams.

If you've been diligently saving but finding yourself just short of what you need to enter the property market, this new scheme could be the solution you've been waiting for.

What is help to buy?

Help to Buy is a shared equity scheme where the Australian Government becomes your partner in home ownership. Rather than going it alone, the Government will contribute a significant portion toward your home purchase, making it possible to buy sooner with just a 2% deposit.

Here's how it works:

Unlike a loan guarantee (like the 5% Deposit Scheme, which simply guarantees a portion of your loan), Help to Buy actually gives the government an equity share in your home.

The scheme allows eligible buyers to purchase a home with just a 2% deposit, while the Government contributes between 5% and 30% for existing homes or up to 40% for newly built homes. This means you can secure a property that meets your needs without waiting years to save a larger deposit.

With 10,000 places available each year for the next four years (40,000 total), thousands of Australian families will have the opportunity to make the step into home ownership, whether they're first-time buyers or returning to the property market.

Let's look at how help to buy works in practice with the Australian Government example

Consider Rob, who purchased a home for $800,000 through the scheme: -

·         Rob contributed a $16,000 deposit (2%)

·         The Government contributed $240,000 (30%)- The Government's contribution (repaid later)

·         Rob's Home Loan $544,000 68 % The amount Rob borrowed from the participating lender.

·         Total Property Value $800,000 100%

Rob's loan-to-value ratio is 68%, which he repays through regular monthly payments over 30 years. Meanwhile, the Government holds a 30% equity share that must eventually be repaid when Rob sells the property or buys back the Government's portion.

The key benefit? Rob's monthly mortgage repayments are significantly lower because he's only paying interest on $544,000 instead of $784,000.

Meanwhile, the Government holds a 30% equity share that must eventually be repaid when Rob sells the property or buys back the Government's portion.

The key benefit? Rob's monthly mortgage repayments are significantly lower because he's only paying interest on $544,000 instead of $784,000.

Who can apply?

The Help to Buy Scheme has been designed with specific eligibility criteria to ensure it reaches those who need it most:

Personal Requirements:

• Australian citizens aged 18 or over

• Individual applicants with annual taxable income at or below $100,000

• Joint applicants or single parents with combined income at or below $160,000

• Cannot currently own property in Australia or overseas (with limited exceptions for single parents)

Financial Requirements:

• Minimum 2% deposit of the home purchase price

• Must obtain a home loan from a participating lender (currently Commonwealth Bank or Bank Australia, with more joining in 2026)

• Your combined deposit plus the Government's contribution must equal at least 20% of the property’s value

• You must use the property as your principal place of residence

Property Requirements:

• Can purchase new or existing homes, including houses, townhouses, apartments, units, or duplexes

• Can purchase vacant land with a signed building contract

• Must be within the property price cap for your location

• Property price caps vary by location (e.g., $1.3 million in Sydney and NSW regional centers, $800,000 elsewhere in NSW)

Important Update on State Participation

Please note that Western Australia, South Australia, and Tasmania are yet to pass the necessary legislation to participate in the Help to Buy Scheme. The scheme is currently available in:

• New South Wales

• Victoria

• Queensland

• Australian Capital Territory

• Northern Territory

The Australian Government will provide updates as additional states join the program.

Participating lenders

Applicants open December 5th, 2025, through participating lenders.

To find out which lenders are participating or if you are eligible speak to one of our brokers now by calling us or booking an appointment.

What You need to Know?

Help to Buy isn't designed to be a permanent arrangement. The scheme offers flexible pathways to eventually own your home outright:

·         Incremental repayments: Make voluntary payments to gradually buy back the Government's share, with minimum 5% increments

·         Refinance to buy out: When your financial situation improves, you can borrow additional funds to purchase the Government's equity

·         Sell your home: If your circumstances change, you can sell a,nd the Government receives their proportional share of the sale proceeds

Throughout your participation, you'll have ongoing obligations including maintaining and insuring your home and providing updated income information during regular reviews. If your income exceeds the eligibility thresholds while in the scheme, you may need to explore options to buy back the Government's share.

 What Happens Next?

Ready to Apply? Here's Your Action Plan:

1. Check your eligibility. Call us.
   

2. Gather Your Documents:

• Recent ATO Notice of Assessment showing your taxable income

• Bank statements demonstrating your 2% deposit savings

• Identification documents

• Details of your assets and liabilities
  

3. Research Properties: Understand the price caps for your desired location and start viewing properties within those limits.
   

4. Speak with your Mortgage Broker Application: From December 5, 2025, contact your Mortgage Broker to assist in beginning your application. They will assess your eligibility and submit your application to Housing Australia on your behalf. Book Now
   

5. Get Pre-Approval: Before making an offer or bidding at auction, ensure you have pre-approval from both your lender and Housing Australia.

Important: You cannot apply directly to Housing Australia. All applications must go through a participating lender.

Join our Newsletter

Stay informed about Help to Buy by registering for email updates. The Help to Buy Scheme represents a significant step forward in making home ownership accessible to more Australians. Opening December 5, 2025, this shared equity program could help make your property dreams a reality sooner than you thought possible. Whether you're a first-time buyer ready to take that first step or someone returning to home ownership, now is the time to check your eligibility and prepare your application.

This content is provided for educational and informational purposes only. It constitutes general information and commentary, not personalized financial, investment, legal, or tax advice. It does not consider your individual objectives, financial situation, or specific needs. Before making any financial decision, you should assess whether the information is appropriate for your situation and seek advice from an appropriately qualified professional (e.g., an ASIC-licensed financial advisor or registered tax agent). We do not accept any liability for loss or damage suffered by reliance on this information.

Register now.

Source: Australian Government Help to Buy

Date 3rd December 2025