In the scenario above, the government contributed 10% of the initial purchase price ($70,000). This means the government owns 10% of the home's equity. Let's say you repaid the loan on the property and sold the property for $850,000.
10% of $850,000 is $85,000. This is the amount you would have to pay to the government when you sell.
If you're buying an existing home the government can contribute up to 30% of the purchase price. For newly-built homes this increases to 40%.
To take advantage of this scheme, buyers must meet these criteria:
You do not have to be a first home buyer to participate in the scheme. People who have previously owned property but don't own a home currently can also qualify.
There's a price cap in place with this scheme. This means that to be eligible to access the scheme, your property's purchase price needs to be at or below the threshold.
Every city and region has a different price cap, reflecting the differences between various property markets in Australia.
| City/state region | Price cap |
|---|---|
| NSW – capital city and regional centres | $1.3 million |
| NSW – rest of the state | $800,000 |
| VIC – capital city and regional centres | $950,000 |
| VIC – rest of the state | $650,000 |
| QLD – capital city and regional centres | $1 million |
| QLD – rest of the state | $700,000 |
| WA – capital city | $850,000 |
| WA – rest of the state | $600,000 |
| SA – capital city | $900,000 |
| SA – rest of the state | $500,000 |
| TAS – capital city | $700,000 |
| TAS – rest of the state | $550,000 |
| ACT | $1 million |
| Northern Territory | $600,000 |
| Jervis Bay Territory and Norfolk Island | $550,000 |
| Christmas Island and Cocos (Keeling) Islands | $400,000 |
The scheme allows buyers to enter the market with small deposits. But while most buyers with low deposits get hit with high borrowing costs and lenders mortgage insurance premiums, under the Help to Buy scheme you can avoid both.
The government covers part of your costs so you have to borrow less. And because the government's contribution effectively boosts your deposit size, you avoid LMI – which could be over $30,000 depending on the purchase price and deposit size.
This can save you quite a bit. Here are 2 hypothetical examples using the same figures as above.
The difference here is significant: around $900 a month in repayments, and a saving of over $20k in LMI.
There are many first home buyer support policies from state and federal governments. Most of these policies help Australians enter the market with the following:
Other schemes include the First Home Guarantee Scheme and New Home Guarantee. The Help to Buy Scheme is different in that it is not only available to first home buyers, but to anyone who does not currently own property.
It is also unique in that the government is essentially co-buying the property with you. This is because it is a shared equity scheme. The most similar policy is the Victorian government's Homebuyer Fund. In this state scheme, you can buy with a 5% deposit and the state government contributes up to 25% of the price.
The NSW government has also launched a shared equity scheme with similar criteria.
"Being eligible for a home buying scheme doesn't mean you can automatically get the loan or the home you want. Banks and lenders will still look at whether you can service the loan, and so buying that $1.3 million property in Sydney might still be out of reach for some.
But this can still be a great scheme. While we're waiting for the scheme to begin, work out your borrowing power, research property prices, do all the calculations, and speak to a mortgage broker if you need any support."
You can apply for the Help to Buy scheme through a participating lender from 5 December 2025. The lender will assess your eligibility and then guide you through the application process.
Currently, there are 2 participating lenders: CommBank and Bank Australia.
You will not be able to apply for the scheme with CommBank through a mortgage broker.
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The scheme the federal government promised in the last election, shared equity scheme. Has it started yet ? Is there a government website ?
Hi Robert,
The scheme is planned to commence in 2023 and is expected to accept applications during two financial years (2022-23 and 2023-24). You can visit your state government’s website for more information.
Thanks,
Rebecca
Hi, just wondering where you found information about this being for first home buyers only. The ALP website says the scheme is for anyone who doesn’t currently own property. In fact this was a big selling point of the scheme. Has this since changed?
Hello Jane,
We have updated a reference on the page to clarify that the policy will (assuming no changes) be available for any eligible buyer who doesn’t currently own property. Thanks for pointing that out!
Kind regards,
Richard
how can we apply for this scheme is there an application for this and if there is when will it come available
Hi Gianfranco,
At this time, there is no set application process released for the Help to Buy Scheme yet. Please feel free to visit our page from time to time to check the latest updates on the scheme.
Kind regards,
Rebecca
Where it says You need to earn $90,000 a year or less, is this taxable income or earnings – my accountant is asking me and I’m not sure
Hi Donna,
No further details have been provided about the scheme as it isn’t live yet. However, you can reach out to your chosen home loan lender or mortgage broker to assist you with the Help to Buy application.
Kind regards,
Richard
How do I apply for the help to buy scheme….I have noticed on some cites that it commences on 1 July 2022, however I can not find how to apply for it because of meeting the requirements.
Hi Glenys,
You can reach out to your chosen home loan lender or mortgage broker to assist you with the Help to Buy application.
Kind regards,
Richard