Preparing financially
Help to Buy Scheme
A federal shared-equity scheme — a 2% deposit plus a Government equity contribution, structured as an interest-free loan secured by a second mortgage, repaid proportionally when you sell or buy it out.
- Eligible buyers save a minimum 2% deposit; the Government contributes up to 30% (existing home) or 40% (new home) of the purchase price as an equity share.
- It's not a grant — the contribution is an interest-free loan secured by a second mortgage, in exchange for that proportional equity share.
- For FY2026, income thresholds are $103,000 (individual) and $165,000 (joint or single parent), checked against your ATO Notice of Assessment — thresholds are indexed, so confirm the current figures before relying on them.
- 2% is a minimum deposit, not an automatic entitlement — you're generally expected to contribute the maximum you can reasonably afford, and places and price caps are limited.
- The Government's share is repaid proportionally to the property's value when repaid, not as a fixed dollar amount — it can be more or less than the amount contributed.
How does the shared-equity structure actually work?
Help to Buy is a separate scheme from the 5% Deposit Scheme: eligible buyers save a minimum 2% deposit (Housing Australia / Australian Government, verified 29 Jul 2026) and the Government contributes up to 30% of the purchase price for an existing home, or up to 40% for a new home, in exchange for a proportional equity share. It isn't a grant — official scheme documents describe the contribution as an interest-free loan in exchange for that equity share, secured by a second mortgage over the property. You pay no regular interest or rent on the Government's share, and you hold sole title to the property, but the Commonwealth retains a proportional interest until its share is repaid.
Who can use it, and is 2% always enough?
For FY2026, eligibility requires annual taxable income at or below $103,000 for individual applicants, or $165,000 for single parents and joint applicants, as shown on the applicant's ATO Notice of Assessment for the previous financial year (Housing Australia / Australian Government, verified 18 Aug 2026) — thresholds are indexed, so confirm the current figures before relying on them. A 2% deposit is a minimum, not an amount every eligible applicant can simply choose: you're generally expected to contribute the maximum you can reasonably afford, and Help to Buy isn't available if you could buy using your own savings, assets and borrowing capacity without it. A limited number of places are released, and property price caps apply by location — check the current postcode cap before entering a contract.
How is the Government's share repaid?
Through voluntary repayments over time, or when you sell or otherwise stop meeting the eligibility rules — and the Government shares proportionally in any gain or loss in the property's value at that point, not a fixed dollar amount. For example, a 30% Government share in a property that rises in value means paying back 30% of the higher value, not 30% of the original price; if the value falls, the Government's repayment falls too, but you remain responsible for the full mortgage regardless of what happens to the property's value.
What ongoing obligations apply?
You need to keep living in the property as your home, maintain adequate insurance, and get approval before major changes that materially affect its value. Income is generally reviewed periodically, and refinancing or selling requires notifying Housing Australia so the equity share can be settled. See ongoing costs of home ownership for what you'll be funding on top of the mortgage.
Help to Buy or the 5% Deposit Scheme?
They solve different problems. The 5% Deposit Scheme reduces the deposit you need but you still borrow — and repay — the full purchase price. Help to Buy reduces both the deposit and the loan you need by bringing in a Government equity partner, at the cost of sharing future gains (or losses) on the portion it owns. The two schemes can't be used for the same purchase — which fits depends on whether your constraint is deposit size alone, or overall borrowing capacity.
Practical checklist
Before assuming Help to Buy suits your situation
- Check current place availability and whether applications are open
- Confirm your income and the property's price against current thresholds and caps
- Understand how the proportional repayment would work if the property's value rises or falls
- Ask a participating lender how this interacts with your loan serviceability assessment
- Compare it against the 5% Deposit Scheme if your real constraint is deposit, not borrowing capacity
Questions for a professional
- Based on current thresholds and caps, would I be eligible for Help to Buy?
- How would the Government's equity share affect what I owe if I sell in five years?
- Am I expected to contribute more than the 2% minimum given my savings and borrowing capacity?
- Would the 5% Deposit Scheme suit my situation better than shared equity?
Official resources
Sources and methodology
- Australian Government Help to Buy Scheme — Housing Australia / Australian Government (retrieved 29 Jul 2026)
Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.