Help to Buy Scheme Australia — Shared Equity Guide (2026)
Help to Buy is the Australian Federal Government’s shared equity scheme, designed to help eligible low-to-middle income buyers purchase a home with a smaller deposit and a smaller mortgage. Under the scheme, the federal government co-purchases up to 40% of a new property (or 30% of an existing property) — reducing the buyer’s deposit requirement and monthly repayments.
Unlike the First Home Guarantee, Help to Buy involves the government taking an equity stake in your home. You must eventually buy the government out or repay the equity share when you sell.
Key Features (2026)
| Feature | Detail |
|---|---|
| Government equity contribution | Up to 40% (new builds); up to 30% (existing homes) |
| Minimum deposit required | 2% of the full purchase price |
| LMI payable | No |
| Income cap — single | $90,000 gross annual income |
| Income cap — couple/joint | $120,000 combined gross annual income |
| Annual places | 10,000 |
| Eligible buyers | Must not own other property |
| Administered by | Housing Australia |
Note: Help to Buy was legislated in late 2024. Implementation details may evolve. Verify current status and eligibility at housingaustralia.gov.au.
How Help to Buy Works
Example — $600,000 new home, 30% government equity:
| Item | Amount |
|---|---|
| Property price | $600,000 |
| Government equity (30%) | $180,000 |
| Buyer’s loan amount | $408,000 (68%) |
| Buyer’s deposit (2%) | $12,000 |
| Effective LVR | 68% (on buyer’s portion) |
| LMI | Not required |
By taking a 30% equity stake, the government reduces the buyer’s loan from $588,000 (98% LVR) down to $408,000 — cutting monthly repayments by approximately $1,080/month at 6.00%.
Property Price Caps
Like other Home Guarantee Scheme products, Help to Buy has property price caps that vary by location. Caps are set to align broadly with median property prices in each region.
Specific caps are published by Housing Australia and subject to update. As a reference, they are expected to align roughly with First Home Guarantee price caps.
Income Caps — The Key Difference from FHBG
The Help to Buy scheme targets lower-income buyers — its income caps are significantly below those of the First Home Guarantee:
| Applicant Type | Income Cap | FHBG Income Cap |
|---|---|---|
| Single | $90,000 | $125,000 |
| Couple / joint | $120,000 | $200,000 |
For buyers earning above $90,000 (single) or $120,000 (couple), the First Home Guarantee is the relevant scheme. Help to Buy is specifically designed for lower-income buyers who may struggle even with a 5% deposit requirement.
What Is Shared Equity?
Shared equity means the government owns a percentage of your home. While you live there and maintain it as though it is fully yours, the government’s equity share:
- Does not accrue rent or charge interest
- Does participate in capital gains when you sell (the government receives its proportionate share of any sale proceeds)
- Can be bought out at any time — you can purchase the government’s equity stake incrementally or in full as your financial position improves
Example — buying out the government share: If your $600,000 property rises to $800,000 in value and the government holds 30%:
- Government’s share at sale: 30% × $800,000 = $240,000 (repayable to government)
- Your equity: 70% × $800,000 = $560,000 (minus your outstanding loan balance)
Help to Buy vs First Home Guarantee — Which Is Better?
| Situation | Better Scheme |
|---|---|
| Income above $90,000 (single) | First Home Guarantee |
| Income below $90,000 (single), tight deposit | Help to Buy |
| Want full ownership immediately | First Home Guarantee |
| Want to minimise loan size and repayments | Help to Buy |
| Comfortable building equity over full purchase price | First Home Guarantee |
| Happy to share future capital gains | Help to Buy |
State-Based Shared Equity Schemes
Several states operate their own shared equity programs independently of the federal scheme:
- NSW: Shared Equity Home Buyer Helper (government contributes up to 40% new / 30% existing; different income caps)
- VIC: HomesVic (government co-ownership program; limited places)
- WA: Keystart Loans (low-deposit lending through a government-owned lender)
See Shared Equity Schemes Australia for a full comparison of state programs.
Frequently Asked Questions
Do I have to pay rent to the government for their equity share under Help to Buy? No. The government does not charge rent on its equity stake. You live in and maintain the property as a normal owner-occupier. The government’s share is returned when you sell or buy them out.
Can I buy out the government’s share over time? Yes. You can purchase additional equity from the government at any time (known as “staircasing”). This reduces the government’s stake and increases your ownership percentage — ultimately moving toward 100% ownership.
Does the government get capital gains from my property? Yes. When you sell, the government receives its proportionate share of the sale price. If your property has grown in value, the government’s payout will be larger than its original contribution.
Is Help to Buy available to previous homeowners? No. You must not own any other residential property in Australia at the time of application.
How does Help to Buy affect my borrowing power? By reducing your loan amount significantly (e.g., from $590,000 to $408,000 on a $600,000 property with 30% equity), your monthly repayments fall substantially. However, lenders will still assess serviceability on the loan amount you are borrowing.
Related Guides
- Home Guarantee Scheme — All Three Guarantees
- First Home Guarantee Explained
- Shared Equity Schemes — State Programs
- Government Home Buying Schemes — Complete Guide
- First Home Buyer Hub
This article provides general information only. Help to Buy scheme details, income caps and property price caps are subject to change. Always verify current information at housingaustralia.gov.au. For advice tailored to your situation, speak with a licensed mortgage broker or financial adviser. Find one through MoneySmart.