Last updated: March 2026
Help to Buy Scheme Australia 2026: Government Pays Up to 40% of Your Home
What if the Government bought up to 40% of your home so you only needed a tiny deposit and a much smaller mortgage? That’s exactly what the Help to Buy scheme offers. Launched in early 2025 after years of legislative wrangling, Help to Buy is Australia’s first national shared equity scheme — and it’s already proving enormously popular, with over 2,300 places taken in the first months of operation.
In this guide, we’ll break down everything you need to know about the Help to Buy scheme in 2026: how shared equity works, what you’ll need to qualify, property price caps in every state, the participating lenders, how to eventually buy back the Government’s share, and worked examples showing just how much it could save you.
What Is the Help to Buy Scheme?
Help to Buy is a shared equity scheme run by the Australian Government through Housing Australia. Under the program, the Government contributes a portion of the purchase price of your home:
- Up to 40% for a new build (house, apartment, or house-and-land package)
- Up to 30% for an existing (established) property
In return, the Government holds an equivalent equity share in your property. You don’t pay rent on the Government’s share, you don’t pay interest on it, and there are no ongoing fees. You simply own your portion and the Government owns theirs — silently and passively.
The immediate benefit is dramatic: your mortgage is significantly smaller, which means lower repayments, less interest paid over time, and a far more affordable path to home ownership. And because you only need a 2% deposit, the upfront savings requirement is a fraction of what you’d normally need.
How Does Shared Equity Work?
Shared equity means the Government co-owns a share of your home. Here’s how it plays out in practice:
- You contribute your deposit (minimum 2%) and take out a home loan for the remaining portion that the Government doesn’t cover.
- The Government contributes its share (up to 30% or 40%) as an equity investment. This is not a loan — there are no repayments on this portion.
- You live in the home as your principal place of residence and pay your mortgage as normal.
- If the property increases in value, the Government’s share increases proportionally. If it decreases, the Government shares in the loss too.
- When you sell or buy back the share, the Government receives its percentage of the current market value.
For example, if the Government holds a 30% share and your home’s value rises from $500,000 to $600,000, the Government’s share is now worth $180,000 (30% of $600,000). You keep the remaining $420,000 in equity, plus you’ve been making lower repayments the entire time.
Deposit Requirements
One of the most attractive features of Help to Buy is the ultra-low deposit requirement of just 2%. On a $500,000 property, that’s only $10,000. Compare that to the traditional 20% deposit ($100,000) or even the 5% required under the First Home Guarantee ($25,000), and the difference is stark.
The 2% must be genuine savings. Because the Government’s equity contribution significantly reduces your loan-to-value ratio (LVR), you won’t be required to pay Lenders Mortgage Insurance (LMI) either, even with such a small deposit.
Income Limits
Unlike the First Home Guarantee (which removed income caps in October 2025), Help to Buy does have income limits:
- Singles: Taxable income must not exceed $100,000 per year
- Couples: Combined taxable income must not exceed $160,000 per year
Income is assessed based on your most recent Notice of Assessment from the Australian Taxation Office (ATO). If your income fluctuates, it’s the most recent tax year that counts. These thresholds are designed to target the scheme at low-to-moderate income earners who face the greatest barriers to home ownership.
Property Price Caps by State and Territory
Each state and territory has its own property price cap under Help to Buy. These caps reflect local market conditions and are periodically reviewed. The current thresholds as at March 2026 are:
| State / Territory | Capital City | Regional |
|---|---|---|
| New South Wales | $950,000 | $700,000 |
| Victoria | $850,000 | $650,000 |
| Queensland | $750,000 | $550,000 |
| Western Australia | $700,000 | $500,000 |
| South Australia | $650,000 | $500,000 |
| Tasmania | $600,000 | $450,000 |
| ACT | $750,000 | N/A |
| Northern Territory | $600,000 | $500,000 |
These caps apply to the total purchase price of the property, not just your share.
Full Eligibility Criteria
To be eligible for the Help to Buy scheme, you must meet all of the following:
- Australian citizen: You must be an Australian citizen aged 18 or over. Permanent residents are not eligible (this differs from the First Home Guarantee).
- First home buyer or previous owner in hardship: You must not currently own any interest in residential property. Former homeowners who have experienced financial hardship (e.g., relationship breakdown) may be eligible at the discretion of Housing Australia.
- Income within limits: Your taxable income must not exceed $100,000 (single) or $160,000 (couple).
- Minimum 2% deposit: You must have at least 2% of the purchase price saved.
- Owner-occupier: You must live in the property as your primary residence.
- Property within price cap: The property must be at or below the relevant price threshold.
- Loan through a participating lender: Your home loan must be with one of the approved lenders.
Available States and Territories
Help to Buy is a national scheme and is available in all states and territories across Australia — NSW, Victoria, Queensland, Western Australia, South Australia, Tasmania, the ACT, and the Northern Territory. However, the property price caps and the types of properties available vary by location, so it’s important to check the specifics for your area.
Participating Lenders
At launch, the scheme started with a smaller panel of lenders, which has since expanded. The current key participating lenders include:
- Commonwealth Bank of Australia (CBA) — the largest lender on the panel with nationwide branch access
- Bank Australia — a customer-owned bank with a strong focus on ethical and sustainable lending
- Additional lenders are expected to join throughout 2026 as the scheme matures
Because the lender panel is still growing, interest rates and loan features may be less competitive than the broader market. It’s worth getting quotes from both participating lenders and comparing the overall cost (including the benefit of the Government equity contribution) against a standard loan with a larger deposit.
Places Are Filling Fast
Unlike the First Home Guarantee (which now has unlimited places), Help to Buy has a capped allocation of 10,000 places per year. As of early 2026, over 2,300 places have already been taken, and demand continues to grow as awareness of the scheme spreads.
If you’re considering Help to Buy, don’t delay. Once the annual allocation is filled, you’ll need to wait until the next financial year for new places to become available. Getting pre-approved with a participating lender now will put you in the best position to secure a spot.
Buying Back the Government’s Share
You’re not locked into the shared equity arrangement forever. You can buy back the Government’s share at any time — either in full or in increments of at least 5% at a time. Here’s how it works:
- Get a market valuation: The Government’s share is based on the current market value, not the original purchase price. You’ll need a licensed valuer to assess the property’s worth.
- Pay the proportional amount: If the Government owns 30% and the property is now valued at $700,000, you’d need $210,000 to buy back the full share (or $35,000 per 5% increment).
- Refinance if needed: Most buyers will increase their mortgage to fund the buyback. As your equity grows, you may be able to access better loan terms.
- No penalties: There are no fees or penalties for buying back the Government’s share at any stage.
Keep in mind that if your property has appreciated significantly, buying back the Government’s share will cost more than the original contribution. Conversely, if values have dropped, you’ll pay less. This is the trade-off of shared equity: the Government shares in both the upside and the downside.
Worked Examples
Example 1: New Build in Western Sydney — $750,000
Sarah earns $85,000 per year and wants to buy a new apartment in Western Sydney for $750,000.
- Government contribution (40% for new build): $300,000
- Sarah’s deposit (2%): $15,000
- Sarah’s mortgage: $435,000
- Monthly repayment (at 6.0% over 30 years): approximately $2,608
Without Help to Buy (20% deposit on the same property):
- Deposit needed: $150,000
- Mortgage: $600,000
- Monthly repayment: approximately $3,597
Sarah saves $135,000 on her deposit and nearly $1,000 per month on repayments. The trade-off is that the Government owns 40% of the property’s future value.
Example 2: Existing Home in Adelaide — $550,000
James and Priya have a combined income of $140,000 and want to buy an established house in Adelaide for $550,000.
- Government contribution (30% for existing property): $165,000
- Their deposit (2%): $11,000
- Their mortgage: $374,000
- Monthly repayment (at 6.0% over 30 years): approximately $2,242
Without the scheme, they’d need a $110,000 deposit and a $440,000 mortgage (at 20% deposit), or face LMI costs on a smaller deposit. Help to Buy makes home ownership immediately accessible with just $11,000 saved.
Help to Buy vs First Home Guarantee: Which Is Better?
Both schemes help you buy with a low deposit and no LMI, but they work very differently:
| Feature | Help to Buy | First Home Guarantee |
|---|---|---|
| Minimum deposit | 2% | 5% |
| Government role | Co-owns property (shared equity) | Guarantees loan (no ownership) |
| Income cap | $100K / $160K | None |
| Places available | 10,000 per year | Unlimited |
| LMI required | No | No |
| Government share of gains | Yes (proportional) | No |
| Loan size reduction | Yes (significantly) | No |
If you earn under the income limits and want the lowest possible repayments, Help to Buy is hard to beat. If you earn more or want to keep 100% of your property’s future value, the First Home Guarantee may be the better choice. For a full breakdown of deposit options, see our deposit guide.
Frequently Asked Questions
Can I renovate my home under Help to Buy?
Yes, you can make cosmetic and structural improvements, but significant renovations that increase the property’s value may require you to notify Housing Australia. Major extensions may require a revaluation and could affect the Government’s equity share.
What if my income rises above the cap after I buy?
The income test only applies at the time of purchase. If your income increases after settlement, you won’t be forced to sell or buy back the Government’s share immediately. However, there may be future income review checkpoints — check the latest terms with Housing Australia.
Can I rent out a room?
You must live in the property as your principal residence. Renting out a spare room while you continue to live there is generally permitted, but renting out the entire property (e.g., while you travel) is not allowed without approval.
What happens if I want to sell?
When you sell, the Government receives its proportional share of the sale price. If the Government owns 30% and you sell for $700,000, the Government receives $210,000 and you keep $490,000 (minus your outstanding mortgage and selling costs).
Can I combine Help to Buy with other schemes?
Yes — you can potentially combine it with the First Home Owner Grant (if buying a new build in an eligible state) and stamp duty exemptions or concessions. However, you generally cannot combine Help to Buy with the First Home Guarantee on the same property, as they involve different lending structures.
Are permanent residents eligible?
No. Help to Buy is only available to Australian citizens. If you’re a permanent resident, consider the First Home Guarantee instead, which does accept permanent residents.
How to Apply
The application process for Help to Buy follows these steps:
- Check your eligibility using the Housing Australia online tool.
- Register your interest through the Housing Australia website or contact a participating lender (CBA or Bank Australia).
- Get pre-approved with a participating lender, who will assess your borrowing capacity.
- Find a property within the price cap for your area.
- Submit your application through the lender, who coordinates with Housing Australia.
- Settle and move in to your new home.
Given the limited number of places, we recommend starting the process as soon as possible. Speak to a participating lender today to understand your options and lock in your spot.
The Bottom Line
The Help to Buy scheme represents a fundamentally different approach to making home ownership accessible. Rather than just helping you get a loan (like the First Home Guarantee does), it directly reduces the amount you need to borrow — which means lower repayments, less interest, and a genuinely more affordable path to owning your own home.
The trade-off — giving the Government a share of your home’s future value — is real, and it’s important to understand the long-term implications. But for many Australians earning under the income thresholds, especially in expensive capital cities, it could be the difference between owning a home and renting indefinitely.
Make sure you also explore the First Home Owner Grant, stamp duty exemptions, and our comprehensive guide to saving your deposit to maximise every dollar of support available to you.