Understanding the Help to Buy Scheme: A Guide for Australians

David Gasparini
Dec 20, 2025
3 min read

Updated: Mar 2

What is the Help to Buy Scheme?

Help to Buy is a shared equity scheme where the Federal Government contributes part of the purchase price of a home in exchange for an equity stake.

In practical terms:

The government can contribute up to 40% for a new home.
Up to 30% for an existing home.
A 2% Deposit is required.

You take out a home loan for the remaining balance, which reduces the amount you need to borrow and lowers your repayments.

Key Features of the Government’s Contribution

The government’s contribution:

Is not a loan.
Does not accrue interest.
Must be repaid when you sell, refinance, or choose to buy out the government’s share.

Property Price Caps – Australia-Wide

To be eligible, the property must be purchased at or below the price cap for the state or territory. Current caps are:

Victoria: Melbourne & major centres: $950,000 - Regional areas: $650,000
New South Wales: Sydney & major centres: $1,300,000 - Regional areas: $800,000
Queensland: Brisbane & South East QLD: $1,000,000 - Regional areas: $700,000
Western Australia: Perth: $850,000 - Regional areas: $600,000
Australian Capital Territory: Territory-wide cap: $1,000,000
Northern Territory: Darwin: $600,000 - Regional areas: $600,000

These caps are strict — exceeding them will make a purchase ineligible under the scheme. the scheme does not currently run in Tasmania and South Australia, however they do have there own separate state government schemes.

Who is Help to Buy Designed For?

The scheme is generally aimed at:

First home buyers.
Single parents or single guardians.
Low to moderate income earners.

Key Eligibility Points

The property must be your principal place of residence.
You cannot own another property at the time of purchase
The property cannot be rented out while participating.
Only a limited number of lenders participate.

How Does Help to Buy Compare to State Equity Schemes?

It’s important to note that some states already offer their own equity-assistance or shared-equity programs, which may be more suitable depending on your situation. Examples include:

Victoria: Victorian Homebuyer Fund.
Tasmania: MyHome Shared Equity Program.
Western Australia: Keystart Shared Home Ownership.
South Australia: HomeStart Shared Equity Options.

Comparing Options

Each program differs in:

Government contribution levels.
Income thresholds.
Buy-out rules.
Lender choice.

In some cases, a state-based scheme may offer greater flexibility than Help to Buy — or vice versa. Comparing options is critical.

Benefits of Help to Buy

The Help to Buy scheme offers several benefits:

Smaller loan size.
Lower repayments.
Reduced interest burden over time.
Earlier access to home ownership.

For some households, this can be the difference between renting long-term and owning a home.

The Trade-Offs to Understand

Because the government owns a share of your home:

You repay a percentage of the future value, not the original contribution.
Flexibility around selling or refinancing can be limited.
Exit planning is essential.

Lender choice is also restricted, and servicing assessments are often tighter.

Is Help to Buy Right for You?

Not always. Some buyers are better suited to:

Traditional lending with grants or concessions.
A state-based equity scheme.
Waiting and strengthening serviceability or savings.

The goal isn’t just buying a home — it’s buying in a way that works both now and in the future.

Final Thoughts

Help to Buy can be a valuable stepping stone when used correctly, but it’s not a shortcut — and it’s not right for everyone. Understanding:

Price caps.
Lender limitations.
Long-term equity implications.

is essential before committing.

How I Can Help

Every situation is different, and eligibility alone doesn’t mean a scheme is the right fit. If you’re considering Help to Buy — or want to compare it against state-based equity options or a traditional loan structure — a tailored review can help you understand: