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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Why does your example only state 15% and not the 40% as government contribution
Hi Jenny,
The government contributes up to 40% of the price. This means it can be less than 40%. It’s simply an example. Most borrowers are unlikely to buy a home with the full 40% amount from the government, although it is an option.
Kind regards,
Richard
I had to sell my house in a property settlement in 2015.
I’ve never been able to re-enter the property market and I’m 48 yo single mum w two teenagers.
I’m thinking I’m not going to be eligible for either the federal or NSW home equity scheme as ive already owned a home.
Disappointed
Hi Clare,
Sorry to hear this. If you are referring to the Help to Buy, you can’t own (or have previously owned) any land or property to be eligible.
There is the family home guarantee, which helps single parents get home loans. You don’t need to be a first home buyer to qualify for this scheme.
All the best,
Richard