Australian Government Help to Buy Scheme

How the Scheme works

Help to Buy is a shared equity Scheme where the Australian Government contributes towards the purchase price of your home. 

Under Help to Buy you will need to:

• save a minimum 2% deposit
• obtain a home loan from a Participating Lender.

The Australian Government will:

• contribute up to 30% (existing homes) or 40% (newly built homes) toward the purchase price.

This will allow you to buy a home sooner by:

• bridging the gap between what you can borrow and the price of a home that suits your needs
• helping your deposit go further, enabling you to buy sooner.

When you buy a home through Help to Buy, you will own the home but share some of the value with the Government. As the Australian Government has contributed to purchasing the property, the Government will proportionally share any gains or losses made when you sell your home or when you buy out the Government’s equity share.  

Example: Rob's purchase with Help to Buy

Rob bought a home for $800,000 through Help to Buy. His home purchase was structured as follows:

• $16,000 deposit from Rob
• $544,000 loan from his Participating Lender
• $240,000 contribution from the Government
• total property value: $800,000.

From this arrangement:

• Rob’s loan to value ratio (LVR) is 68% ($544,000 ÷ $800,000). He repays this loan over 30 years through monthly principal and interest repayments to his lender.

• the Government holds a 30% equity share ($240,000 ÷ $800,000). The contribution must eventually be repaid, either through:
  • voluntary repayments
  • when Rob has the financial capacity to make a payment to buy back the Government's equity or
  • when Rob sells the property.
• the amount paid will always be based on the value of the property at the time of making the payment.

By understanding these obligations, Rob knows what he needs to repay regularly to his lender, and how his long-term path to full home ownership works under the Australian Government Help to Buy Scheme.

Eligibility 

Who is eligible?

Home buyers need to meet eligibility criteria to qualify for Help to Buy. These include:

• minimum age – must be at least 18 years old
• deposit – minimum 2% of the home purchase price
• citizenship – must be Australian citizens
• single and joint applicants – you can apply to the Scheme either alone or together with one other person, provided you both meet the eligibility criteria
• income – must have an annual taxable income at or below $100,000 for individual applicants or $160,000 for single parents and joint applicants, as shown on the ATO Notice of Assessment (NOA) for the previous financial year
• owner-occupier – must live in the home as the principal place of residence whilst a part of the scheme (investment properties are not eligible)
• property ownership – cannot currently own any property in Australia or overseas. There are exceptions for single parents who own property jointly with someone else and want to buy out the other person's share or intend to sell their existing ownership
• other Australian Government assistance – cannot receive help from other schemes, including shared equity schemes, loans or guarantees provided by States or Territories to support the purchase. However, you can still benefit from stamp duty concessions, grants and other exemptions.

Use the Help to Buy Eligibility Tool for a quick check of the main eligibility criteria to help you understand if you are eligible.

Types of homes you can buy

Help to Buy supports you to buy a newly built or existing home in Australia at or below the property price cap for the location.

You may use Help to Buy to purchase:

• a new or existing home, including house, townhouse, apartment, unit or duplex
• a vacant block of land for the construction of a new home or a property that’s being demolished and rebuilt, provided you’ve signed a comprehensive building contract with an eligible builder.

Use our handy tool to check the price caps in your location.

Please note Tasmania has yet to pass enabling legislation to participate in the Scheme. This page will be updated to reflect when Tasmania can offer Help to Buy.

Help to Buy is available in all other States and Territories. 

How to apply and next steps

Apply through a Participating Lender authorised to offer the Australian Government Help to Buy Scheme. You cannot apply directly to Housing Australia for Help to Buy. A Participating Lender will assess your eligibility and submit an application on your behalf.

Check your eligibility
Use the Help to Buy Eligibility Tool for a quick check of the main eligibility criteria to help you understand if you may be eligible.

Find a Participating Lender
Speak with a Participating Lender to assess your eligibility and see if Help to Buy is right for you. You can see the list of Participating Lenders here.

Prepare your application
Your Participating Lender will assess your financial position, guide you through the application requirements, and submit the application on your behalf.

They will perform their required checks and submit your conditional approval application to Housing Australia. Once you've been conditionally approved, you will have a place reserved in the Scheme for up to 90 days.

Find a home that meets your needs
Once you have received your conditional approval letter, you're ready to make an offer on a home that meets your needs. You have up to 90 days from when you receive your conditional approval letter to find a home and sign the contract of sale.

Your conditional approval confirmation letter will outline important details you need to know, such as your maximum purchase price, so you have a clear idea of what's possible.

Before you make an offer, it's a good idea to consider seeking independent legal and financial advice.

Buy your home and join Help to Buy
Once you've found your home, you'll need to complete a few key steps:

Participating Lenders

You can apply for the Australian Government Help to Buy Scheme through one of the Participating Lenders listed here. These lenders are authorised to offer the Scheme and will assess your eligibility and guide you through the application process. 

Ongoing obligations and exit

While you are part of the Australian Government Help to Buy Scheme, you will need to continue meeting the eligibility criteria. This includes: 

• maintaining your home
• keeping your home insured
• participating in reviews such as, but not limited to, providing your updated income details and information about key changes to your personal circumstances.

Help to Buy is designed to help you get into home ownership, but it isn’t meant to be a lifelong commitment. Once you’re in your home, you can begin a journey toward full ownership. 

There are a few ways to leave the Scheme:

1. you can make incremental repayments from your savings to increase your equity share over time
2. you can buy back all or some of the Government’s equity, through additional lending
3. you can sell your home.

You may have other ongoing obligations once you are officially a participant in the Scheme. For more information on ongoing obligations and Scheme exit please see the Help to Buy Fact Sheet and Help to Buy Customer Guide available below and on the Tools and resources page.

Tools and resources

Check out our handy tools and resources, including Frequently Asked Questions, and use our quick online tool to see if you are eligible.