What Is the Help to Buy Scheme?
It lets you buy with as little as a 2 per cent deposit, because the government buys part of the property alongside you. That sounds almost too good, so here is exactly how it works, who qualifies, and the trade-off you are making in return.
The short answer
Help to Buy is an Australian Government shared equity scheme, administered by Housing Australia and launched in December 2025. The government co-purchases part of your home, contributing up to 40 per cent of the price for a new home or 30 per cent for an existing one, in return for an equity share of the same size. Because the government funds part of the purchase, you can buy with a deposit as low as 2 per cent, take out a smaller mortgage, and avoid Lenders Mortgage Insurance. The trade-off is that you share future capital growth with the government, and the scheme is income tested with limited places. It is a genuinely different pathway from the 5 per cent Deposit Scheme, and the two cannot be combined.
What Help to Buy actually is
Help to Buy is a shared equity scheme. That phrase does a lot of work, so it is worth unpacking, because it is what makes the scheme different from every other first home buyer program.
In a normal purchase you provide a deposit, borrow the rest, and own 100 per cent of the home. Under Help to Buy the government becomes a part-owner alongside you. It contributes a share of the purchase price up front, which means a much smaller deposit and a much smaller mortgage. In exchange it holds an equity stake equal to what it put in.
You still live in the home as the owner-occupier, make your own repayments, and make all the decisions about living there. The government is a silent equity partner rather than a landlord. Its share sits registered on the title and is settled later, either when you sell or when you buy the share back over time.
How it works, step by step
- You contribute a deposit as low as 2 per cent. Far less than a standard 20 per cent, and no Lenders Mortgage Insurance applies.
- The government contributes an equity share. Up to 40 per cent of the price for a new home, or up to 30 per cent for an existing home.
- You take out a mortgage for the remainder. Because the government has covered a large slice, your loan is significantly smaller, which means lower repayments.
- You buy and move in. You are the owner-occupier. The government’s share is registered on the title.
- The government’s share is settled later. When you sell, it receives its percentage of the sale price. Alternatively you can buy the share back over time at the market value when you do so.
Applications are made through a participating lender rather than directly to Housing Australia. The lender panel has been limited as the scheme has rolled out and is expanding over time, so confirming which lenders currently offer it is the practical first step.
The 2026 numbers
Because government schemes are indexed and adjusted, always confirm the live figures with Housing Australia before acting.
| Feature | 2026 detail |
|---|---|
| Minimum deposit | 2 per cent of the purchase price, with no Lenders Mortgage Insurance. |
| Government contribution | Up to 40 per cent for a new home, up to 30 per cent for an existing home. |
| Income caps from 1 July 2026 | $103,000 taxable income for an individual, $165,000 for joint applicants and single parents. |
| Sydney and NSW regional centres price cap | $1,300,000, with other NSW areas lower. Caps differ in other states. |
| Places available | 10,000 per year, 40,000 over the four-year life of the scheme. |
| Administered by | Housing Australia, applied for through participating lenders. |
Two details worth flagging. Both your purchase price and the lender’s valuation must sit at or below the cap for your specific area, so a postcode-level check matters. And the income caps are an ongoing condition rather than just an entry test: exceeding the cap for two consecutive years after you join can trigger a requirement to repay the government’s share. Confirm the current caps and conditions on the Housing Australia website.
Who is eligible
- Australian citizen, aged 18 or over. Note this differs from the 5 per cent Deposit Scheme, which extends to permanent residents.
- Income within the caps, based on your most recent Notice of Assessment.
- Owner-occupier. You must live in the home as your principal place of residence.
- Not currently a property owner. You generally cannot own another property in Australia or overseas when you apply. Notably Help to Buy is not strictly limited to first home buyers: a previous owner who currently owns nothing can qualify in some cases.
- Within the place limit. Places are capped each year, so meeting the criteria does not by itself secure a spot.
Because the finer points carry conditions and exceptions, and because places are limited, confirm your specific position with a participating lender or Housing Australia rather than assuming.
Not sure if Help to Buy is right for you?
Book a free 15-minute call. We will run the comparison honestly, Help to Buy against the 5% Deposit Scheme against a standard deposit, and tell you which fits your income, deposit and goals, including when shared equity is not the best move. No obligation, and no fee at any point.
Help to Buy versus the 5% Deposit Scheme
This is the single most common point of confusion, because both help first home buyers with a small deposit while working in fundamentally different ways. They are separate schemes and cannot be used together on the same purchase.
| Help to Buy | 5% Deposit Scheme | |
|---|---|---|
| How it helps | Government co-owns part of the home | Government guarantees the deposit gap |
| Deposit | From 2 per cent | From 5 per cent |
| Who owns the home | You and the government, shared | You own 100 per cent |
| Mortgage size | Smaller, government covers a share | Larger, you borrow up to 95 per cent |
| Income cap | Yes, income tested | No income cap |
| Future capital growth | Shared with the government | All yours |
| NSW and Sydney price cap | $1,300,000 | $1,500,000 |
The simplest way to hold the distinction: under the 5 per cent Deposit Scheme you own the whole home and keep all the growth, but you borrow more and repay a bigger loan. Under Help to Buy you borrow less and repay a smaller loan, but you own less of the home and share the growth. Neither is automatically better. Our first home buyer loans page covers the deposit scheme in full.
The trade-off: sharing your capital growth
Help to Buy can look almost free at first glance. It is not, and understanding the real cost is essential before deciding.
Because the government owns a share of your home, it is entitled to that same share of any increase in value. When you buy back its stake or sell, the government’s portion is calculated on the property’s market value at that time, not on what it originally contributed.
If the government contributed 30 per cent toward a $600,000 home, that is $180,000. If the home later grows to $800,000, buying the share back costs 30 per cent of $800,000, which is $240,000.
That extra $60,000 reflects the growth on the government’s share. You still keep 70 per cent of the growth on the whole property, but you have shared the rest. Those are round numbers used to show the mechanism, not a projection about any property.
This is not a hidden catch. It is simply how shared equity works, and it is the price of getting in with a much smaller deposit and mortgage. There are also other conditions worth weighing: the income test continues after you join, places are limited, only some lenders participate, and there are rules around living in the property and what happens if your circumstances change. Together they mean Help to Buy is a considered decision rather than an obvious win.
Who it suits, and who it does not
It can suit you if
- Saving a full deposit is the main thing keeping you out of the market, and a 2 per cent entry point changes what is possible.
- A smaller mortgage and lower repayments meaningfully improve your monthly position.
- Getting into a home sooner matters more to you than capturing every dollar of future growth.
- Your income sits within the caps and looks likely to stay there.
It may not suit you if
- You can reasonably reach a 5 per cent deposit, in which case the 5 per cent Deposit Scheme lets you keep full ownership and all the growth.
- You expect strong capital growth and want to keep all of it.
- Your income is near the cap and likely to rise above it, which could trigger repayment conditions.
- You value full control and simplicity over the lower entry cost.
The honest position is that Help to Buy trades a share of your future growth for a much easier entry today. Whether that is a good deal depends entirely on your circumstances, your deposit position, and how you weigh getting in sooner against owning outright.
How Intellect Finance can help
Government schemes are only useful if you pick the right one, and Help to Buy is not automatically the best fit even when you qualify. We compare the realistic options side by side: Help to Buy, the 5 per cent Deposit Scheme, a standard deposit with or without a family guarantee, and any state concessions you are entitled to. We confirm which lenders currently participate, check whether the properties you are considering fall under the relevant price cap, and are honest when a different pathway would leave you better off.
Best Interests Duty applies to a home loan for a property you will live in, so we are required to act in your interests and prioritise them over ours. We charge you nothing on any loan type, with no arrangement fee and no clawback recovery fee. Penrith based since 2005, holding Australian Credit Licence 390611. A smaller Help to Buy loan also changes your numbers, which our guide to how much you can borrow covers.
Read Intellect Finance’s Google reviews
Working out whether a shared equity scheme, a 5 per cent deposit, or a different pathway suits you is exactly the kind of comparison a broker helps with. Here are Intellect Finance’s Google reviews, live from our Google Business Profile and unedited.
These reviews reflect other borrowers’ experiences. They are not a promise of any particular outcome for your loan, which will always depend on your circumstances and the lender’s assessment.
Frequently Asked
Help to Buy FAQs
The questions buyers ask most about the scheme.
What is the Help to Buy scheme?
An Australian Government shared equity scheme, administered by Housing Australia and launched in December 2025. The government co-purchases part of your home, contributing up to 40 per cent of the price for a new home or 30 per cent for an existing home, in return for an equity share of the same size. You can buy with a deposit as low as 2 per cent and take out a smaller mortgage, with no Lenders Mortgage Insurance. You own and live in the home, and the government’s share is repaid when you sell or bought back over time.
How much deposit do I need for Help to Buy?
A minimum of 2 per cent of the purchase price, with no Lenders Mortgage Insurance. You still need to cover the usual purchase costs on top, including duty where it applies, legal and conveyancing fees and inspections, so 2 per cent of the price is not the total cash needed to complete.
What are the income caps for Help to Buy in 2026?
From 1 July 2026 the caps are $103,000 in taxable income for an individual and $165,000 for joint applicants and single parents, based on your most recent Notice of Assessment. These are indexed and rose from the caps that applied at launch. If your income exceeds the cap for two consecutive years after you join, you may be required to repay the government’s share, so the ongoing condition matters as much as the entry test. Confirm the current figures with Housing Australia.
What are the property price caps for Help to Buy?
Caps vary by location to reflect local market conditions. For Sydney and NSW regional centres the Help to Buy cap is $1,300,000, with other areas of NSW lower, and other states have their own limits. Both your purchase price and the lender’s valuation must fall at or below the cap for your area, so check the current figure for the specific postcode on the Housing Australia website before making an offer.
Who is eligible for Help to Buy?
Generally an Australian citizen aged 18 or over, earning within the income caps, living in the home as your principal place of residence. You generally cannot own another property in Australia or overseas when you apply, though unlike a strict first home buyer scheme, previous owners who currently own nothing can qualify in some cases. Places are limited each year, so eligibility alone does not guarantee a place. Note the citizenship requirement differs from the 5 per cent Deposit Scheme, which extends to permanent residents.
How is Help to Buy different from the 5% Deposit Scheme?
They work differently. The 5 per cent Deposit Scheme lets you buy with a 5 per cent deposit and no Lenders Mortgage Insurance, but you borrow 95 per cent and own the whole property, and there is no income cap. Help to Buy has the government co-own up to 40 per cent, so your deposit can be as low as 2 per cent and your mortgage is smaller, but you share future capital growth and it is income tested. The two cannot be combined.
What are the downsides of Help to Buy?
The main trade-off is sharing future capital growth in proportion to the government’s equity share. If your home rises in value, buying back that share later costs more than its original contribution, because it is calculated on current market value. There are also ongoing conditions including the income test and the requirement to live in the property, limited places each year, and a restricted lender panel.
How do I apply for Help to Buy?
Through a participating lender rather than directly to Housing Australia. The participating panel has been limited as the scheme rolled out and is expanding, so the first step is checking which lenders currently offer it. From there you get pre-approved for the mortgage portion, find a property within the price cap that passes valuation, and apply for the Help to Buy arrangement as part of your loan application.
The bottom line
Help to Buy is genuinely useful for buyers whose main obstacle is the deposit. A 2 per cent entry point and a smaller mortgage can bring ownership forward by years, and for many that is worth more than capturing every dollar of future growth. The catch is real but not hidden: you share your home’s growth with the government in proportion to its stake, and the scheme comes with income tests, limited places and ongoing conditions.
The mistake to avoid is treating it as free money, or confusing it with the 5 per cent Deposit Scheme, which keeps you in full ownership. Compare the pathways honestly against your own deposit, income and goals before committing. None of them guarantees approval, which rests with the lender, but choosing the one that fits your situation is where the real value lies.
Joseph Sukkar
Joe founded Intellect Finance in Penrith in 2005 and has more than 25 years in Australian finance. First home buyers across Penrith, Western Sydney and the Sydney metropolitan area are a large share of the firm’s residential work, which means scheme comparisons and participating lender panels are day-to-day territory. Intellect Finance charges clients no fee on any loan type. More about the team.
Sources
Housing Australia, Help to Buy: eligibility, income caps, property price caps, place allocations and the participating lender list. Figures are indexed and change. housingaustralia.gov.au
Federal Register of Legislation, Help to Buy Act 2024 and the Housing Australia Investment Mandate Direction 2018, for the statutory basis of the scheme and of the Home Guarantee Scheme it is compared with. legislation.gov.au
Revenue NSW, transfer duty and first home buyer concessions, which apply separately from federal schemes. revenue.nsw.gov.au
Important disclosures, general advice warning and licensing
General information only. This article is general information only and does not constitute financial, credit, legal or tax advice. It does not take your personal or financial circumstances into account, and it is not a recommendation to use any scheme or to purchase any property.
Scheme details change, and published figures vary. Help to Buy is administered by Housing Australia, and its income caps, property price caps, place numbers, participating lenders and eligibility rules are set by government and are subject to change and indexation. The figures here reflect the position as reviewed on 7 September 2026. Published sources have at times reported differing income cap figures following the 1 July 2026 indexation, so confirm the current numbers directly with Housing Australia before relying on them or making an offer. Eligibility is determined by Housing Australia and the participating lender, not by Intellect Finance.
Shared equity has long-term consequences. A shared equity arrangement affects your future proceeds and involves ongoing obligations, including an ongoing income test and requirements about living in the property. Decisions should be made with a full understanding of the participation agreement. The worked example uses round numbers to show the mechanism and is not a projection of any property’s value. Questions about tax or legal implications should be directed to your accountant or solicitor, and questions about whether property is a suitable investment to a licensed financial adviser. Intellect Finance holds a credit licence, not an Australian Financial Services Licence.
Approval is never guaranteed. All lending is subject to lender assessment, credit criteria, valuation and lender policy. Places under the scheme are limited and eligibility alone does not secure one. No broker can guarantee approval, a place, a valuation outcome or a timeframe.
Best Interests Duty. A home loan for a property you will live in is regulated consumer credit under the National Consumer Credit Protection Act 2009, and Best Interests Duty applies. It does not apply to business or commercial lending.
What we charge you. Nothing, on any loan type. No arrangement fee for residential, commercial, corporate, asset, SMSF or personal lending, no fee for complex or specialist lending, and no clawback recovery fee if a loan is discharged early. Lenders pay us a commission on settlement, disclosed to you in writing in our Credit Guide before we provide credit assistance.
About the reviews shown. The reviews displayed on this page are genuine reviews published by clients on Intellect Finance’s Google Business Profile, shown live via a third-party reviews widget. They reflect those individuals’ own experiences and are not a promise of any particular outcome.
Intellect Finance Pty Ltd holds Australian Credit Licence 390611 and is a member of the MFAA and AFCA. Lending criteria, fees and terms apply. Article checked 7 September 2026.
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Book a free 15-minute call. We will compare Help to Buy against the 5% Deposit Scheme and a standard deposit for your situation, confirm which lenders currently participate, check your target properties against the price cap, and tell you honestly which pathway fits your income, deposit and goals. Penrith based since 2005, clients Australia-wide. No fee on any loan type. ACL 390611.
General information only, not financial advice. Scheme figures are set by government, indexed and subject to change. Confirm current details with Housing Australia. No broker can guarantee approval or a place.
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