Help to Buy shared equity scheme explained

Help to Buy opened in December 2025, run by Housing Australia through participating lenders. It works very differently from the 5% Deposit Scheme: the government owns part of your home rather than guaranteeing part of your loan. See how a smaller loan changes your repayments in the repayment calculator.

How Help to Buy works

1. You find a home under the price cap and save at least a 2% deposit.
2. The government contributes up to 40% (new home) or 30% (existing home) of the price, in exchange for the same share of ownership.
3. You take out a home loan for the rest from a participating lender. No LMI applies.
4. The government charges no rent or interest on its share. You pay all rates, fees and stamp duty.
5. You can buy back the government’s share over time in portions of at least 5%, or repay it when you sell.

How much smaller the loan is

	$800,000 new home	$700,000 existing home
Your deposit (2%)	$16,000	$14,000
Government share	$320,000 (40%)	$210,000 (30%)
Your home loan	$464,000	$476,000
Monthly repayment	$2,933	$3,009
Repayment on a 95% loan instead	$4,804	$4,203

Because the loan is smaller, your repayments and the income you need to qualify are much lower. The trade-off is that you own less of the home, and the government shares in any rise in its value.

Eligibility in 2026-27

• Income limits: $103,000 for a single applicant, $165,000 for joint applicants or single parents, based on your 2025-26 tax assessment.
• Citizenship: Australian citizen, aged 18 or over.
• Property: you must not own other property, and must live in the home.
• Deposit: at least 2%.
• Places: up to 10,000 a year.

Property price caps

State or territory	Capital city and regional centres	Rest of state
New South Wales	$1,300,000	$800,000
Victoria	$950,000	$650,000
Queensland	$1,000,000	$700,000
Western Australia	$850,000	$600,000
South Australia	$900,000	$500,000
Tasmania	$700,000	$550,000
ACT	$1,000,000	n/a
Northern Territory	$600,000	n/a

What happens later

• Selling: the government receives its share of the sale price, so it shares in gains and losses.
• Buying back: you can increase your share in steps of at least 5%, at the property’s value at the time.
• Income rises: if your income goes above the limits, you may be required to buy back some or all of the government’s share.
• Moving out: the home must remain your main residence, otherwise you may need to repay the government’s share.

Help to Buy vs the 5% Deposit Scheme

	Help to Buy	5% Deposit Scheme
Minimum deposit	2%	5% (2% for single parents)
Income limit	$103,000 single, $165,000 joint	None
LMI	None	None
Loan size	Much smaller	Up to 95% of the price
Ownership	Shared with government	You own 100%
Places	Up to 10,000 a year	Unlimited

If your income is under the limits and repayments on a 95% loan would stretch you, Help to Buy can be the more affordable path. If you earn more, or want full ownership, the 5% Deposit Scheme is usually the better fit. Both avoid LMI; for other routes see how to avoid LMI. Check your stamp duty too, using first home buyer exemptions by state, and total your costs in the upfront costs calculator.

Frequently asked questions