Government shared-equity scheme

Help to Buy,
explained.

The federal government's Help to Buy scheme lets eligible buyers get in with as little as a 2% deposit — with the government taking an equity share of up to 30–40% so you borrow less. It expanded on 1 July 2026. Here's how it works, the trade-offs, and how it stacks up against the 5% deposit route.

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Who pays what

How the scheme splits the price.

Purchase price$700,000

Your deposit (2%)$14,000

Government share (up to 30%)$210,000

The loan you take out$476,000

Illustrative only. The government contributes up to 30% (existing) or 40% (new); the actual share, price caps and your loan depend on the lender and your circumstances. Property price caps apply and vary by location.

The basics

What is Help to Buy?

Help to Buy is an Australian Government shared-equity scheme. The government chips in part of the purchase price — up to 40% for a new home or 30% for an existing home — and takes an equity share in return. Because that lowers the amount you need to borrow, you can buy with a deposit as small as 2%, and you won't pay Lenders' Mortgage Insurance.

You still own your home and live in it. There's no rent and no interest charged on the government's share. When you eventually sell — or choose to buy the share back — the government receives its percentage of the value at that time, so it shares in the gain (or the fall) alongside you.

The scheme expanded on 1 July 2026: income limits rose to $103,000 for a single applicant and $165,000 for joint applicants and single parents, with 10,000 places for the 2026–27 financial year and coverage now across every state and territory.

Step by step

How Help to Buy works.

Four moving parts. The one that trips people up is that you apply through a lender, not the government — and only some lenders offer it.

01

Check you're eligible

You must be an Australian citizen (or meet residency rules), earn under the income limits, not currently own another property, and buy within the price cap for your area.

02

Apply through a participating lender

You can't apply to the government directly. A participating lender assesses you and submits the application to Housing Australia on your behalf. A broker helps you get to the right one.

03

The government takes an equity share

On approval, the government contributes up to 30% (existing) or 40% (new) of the price and registers its share on the title. You cover a 2% deposit and borrow the rest.

04

You buy the share back over time

As your income grows you can buy back the government's share in increments. When you sell, the government simply receives its percentage of the sale price.

The 2026 numbers

What the scheme looks like now.

The key figures after the 1 July 2026 expansion. Property price caps also apply and differ by state and region — a broker can confirm the cap where you're buying.

2%

Minimum deposit

No Lenders' Mortgage Insurance to pay.

30–40%

Government equity share

Up to 30% existing homes, 40% new homes.

$103k / $165k

Income limits (from 1 Jul 2026)

Singles / joint applicants & single parents.

10,000

Places for 2026–27

Across every state and territory.

Both sides of it

The upside — and the trade-offs.

Shared equity is a genuine leg-up, but you're trading some future growth for it. A broker lays out the numbers both ways so you can decide with your eyes open.

What it can unlock

Buy with as little as a 2% deposit — years sooner than saving 20%.
No Lenders' Mortgage Insurance, and a smaller loan means smaller repayments.
No rent and no interest charged on the government's share.
You can buy the government's share back over time as your income grows.

What to weigh up

You give up a share of your home's future capital growth on the government's portion.
Income limits and property price caps apply, and places are capped at 10,000 a year.
Only some lenders offer it — and not all of those accept broker-submitted applications yet.
It's often mutually exclusive with the 5% Deposit Scheme, so the right choice depends on your numbers.

Worked example

Two schemes on the table — how the choice plays out.

Picture a single buyer on a steady income with a small deposit saved, who's heard about Help to Buy and assumes it's the obvious choice — but isn't sure whether to use it or the 5% Deposit Scheme, and doesn't realise you generally can't use both.

This is where a broker earns their keep: laying the two paths side by side. With Help to Buy they'd borrow far less and have smaller repayments, but give up a slice of future growth; with the 5% scheme they'd keep 100% of the upside but carry a larger loan. The income limits and the price cap for the area both get checked before anything else.

If smaller repayments matter more to this buyer than maximising future growth, Help to Buy may win out — and the next step is a lender that accepts the scheme through brokers. The point isn't which scheme is "best" in the abstract; it's matching the mechanics to the buyer in front of you.

This is an illustrative example, not a specific client — Help to Buy is a new scheme. Every application is subject to individual circumstances, scheme eligibility and lender approval. This is general information within Australian Credit Licence scope and is not financial or tax advice — seek advice suited to your own situation before proceeding.

Keep readingFirst home buyer schemes, deposits & grants Keep readingThe 5% Deposit Scheme — buy with a 5% deposit and no LMI

Help to Buy FAQs

Questions, answered.

Yes. You can't apply to the government directly — the scheme runs through a participating lender who submits your application to Housing Australia. A broker helps you check eligibility, compare Help to Buy against other options, and reach a lender that accepts the scheme through brokers. Note that not every participating lender accepts broker-submitted applications yet, though more are joining through 2026.

No. Under Help to Buy the government takes an equity share, not a loan — there's no rent and no interest charged on its portion. You do repay it eventually, either by buying the share back over time or when you sell the home.

The government receives its percentage of the sale price at the time you sell. Because it holds a share of the equity, it participates in any capital growth — and any fall — in proportion to its stake. You can also buy the share back in increments before selling if your circumstances allow.

From 1 July 2026 the taxable income limits are $103,000 for a single applicant and $165,000 for joint applicants and single parents. Property price caps also apply and vary by state and region. A broker can confirm the current cap for the area you're buying in.

Neither is universally better — they suit different situations, and you generally can't use both. Help to Buy means a smaller loan and lower repayments but you give up a share of future growth; the 5% Deposit Scheme keeps 100% of your home's upside but leaves you with a larger loan. The right choice depends on your income, deposit and priorities, which is exactly what a broker helps you compare.

Not strictly — the scheme is open to eligible buyers who don't currently own a home, and in practice most participants are first home buyers. You'll need to meet the citizenship or residency, income and price-cap conditions, and live in the property. A lender or broker confirms your eligibility before applying.

Is Help to Buy
right for you?

Ask a licensed broker to check your eligibility and compare Help to Buy against the 5% deposit route — then point you to a lender that offers it. No phone number, no obligation.

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Help to Buy,explained.