Shared Equity Schemes Australia — State and Federal Programs (2026)
Shared equity schemes allow an eligible buyer to purchase a home with a smaller loan and deposit by having a government body co-purchase a portion of the property. The government’s equity stake reduces your loan size — lowering repayments — but you share any capital gain (or loss) proportionally when you sell or buy out the government’s share.
Both the federal government and several state governments run separate shared equity programs.
How Shared Equity Works
In a standard shared equity arrangement:
- You purchase a property with a smaller deposit (2–5%)
- The government buys a percentage of the property alongside you (e.g., 30%)
- You take out a mortgage only on your share of the property value
- You pay no rent on the government’s share while you live there
- When you sell — or choose to buy out the government — any capital gain is shared proportionally
Example — $600,000 home, 30% government stake:
- Government contributes: $180,000
- Your loan: $600,000 × 95% − $180,000 = $390,000 (5% deposit = $30,000)
- Monthly repayments at 6.00%/30yr on $390,000: ~$2,338 (vs $3,597 on full loan of $600,000 at 90% LVR)
- If sold at $750,000 (25% gain): government receives $225,000 (30%); you receive $525,000 less your remaining loan
Federal Scheme — Help to Buy
The Help to Buy scheme is administered by Housing Australia and provides:
| Feature | Detail |
|---|---|
| Government equity contribution | Up to 40% for new builds; up to 30% for established homes |
| Income cap (single) | $90,000 gross per year |
| Income cap (joint/couple) | $120,000 gross combined per year |
| Minimum deposit required | 2% |
| Places available | 10,000 per year |
| Must you be a first home buyer? | Yes — must not have previously owned residential property in Australia |
Property price caps under Help to Buy (indicative — confirm at application):
| State/Territory | New Builds | Established |
|---|---|---|
| NSW | $950,000 | $850,000 |
| VIC | $850,000 | $750,000 |
| QLD | $750,000 | $650,000 |
| WA | $600,000 | $500,000 |
| SA | $600,000 | $500,000 |
| TAS | $600,000 | $500,000 |
| ACT | $750,000 | $650,000 |
| NT | $600,000 | $500,000 |
Help to Buy was legislated in early 2024. Confirm current status, launch date and price caps with Housing Australia at housingaustralia.gov.au.
Buying out the government’s equity stake: You can buy out the government’s stake in stages at any time by paying market value for the portion you purchase. A registered valuation is required. There is no requirement to buy out — the government stake can remain until sale.
New South Wales — Shared Equity Home Buyer Helper
NSW ran a Shared Equity Home Buyer Helper pilot program. The scheme provided:
- Government equity contribution of up to 40% (new builds) or 30% (established)
- Targeted at key workers, single parents and singles/couples aged over 50
- Income caps: $93,200 (single) / $124,200 (joint)
- Property price caps: $950,000 (Sydney) / $600,000 (regional)
The NSW pilot scheme closed to new applications. Check NSW Government website for current availability or replacement programs.
Victoria — HomesVic
Victoria’s shared equity program, HomesVic, offered:
- Government equity stake of up to 25%
- Targeted at low-to-moderate income earners
- Limited places annually
Check the Victorian Homebuyer Fund (the successor program) and current VIC government housing policy for current availability and details.
Western Australia — SharedStart / Keystart
Western Australia operates the SharedStart loan through Keystart, the state government’s low-deposit home loan provider.
Key features:
- Available to eligible low-to-moderate income earners
- Low deposit requirements
- Income caps apply
- Only available through Keystart (a WA government lender)
WA’s Keystart program is among the most established state shared equity schemes in Australia and has helped tens of thousands of West Australian buyers into homeownership.
Shared Equity vs First Home Guarantee — Which Is Better?
| Feature | Help to Buy (Shared Equity) | First Home Guarantee |
|---|---|---|
| How it helps | Reduces loan size significantly | Eliminates LMI on 5% deposit |
| Income cap (single) | $90,000 | $125,000 |
| Income cap (joint) | $120,000 | $200,000 |
| Your deposit | 2% | 5% |
| You own 100% from day one? | No — government holds equity stake | Yes |
| Capital gain sharing | Yes — proportional to government stake | No — you keep 100% of capital gain |
| Best for | Very limited deposit; lower income | Those wanting full ownership with low deposit |
The First Home Guarantee is generally preferable for buyers who expect significant capital gains or have income above $90,000 (single). Help to Buy suits buyers with the lowest incomes and smallest deposits for whom reducing monthly repayments is the priority.
Frequently Asked Questions
Do I pay rent on the government’s share of my home? No. Under Help to Buy and the state shared equity programs, you live in the property as an owner and do not pay rent on the government’s equity stake.
Can I renovate a property under a shared equity scheme? Generally yes, but significant renovations may affect property value and the government’s equity stake. Check scheme rules before undertaking major works.
What happens if property prices fall? Capital losses are also shared proportionally. If you sell for less than you paid, the government’s equity stake is calculated at the current (lower) market value — you do not carry the full loss alone.
Can I combine shared equity with the FHOG? Eligibility to combine varies by state and scheme. Check with your scheme administrator — in some states the FHOG may be accessible alongside Help to Buy if you meet all criteria.
Related Guides
Shared equity scheme rules, eligibility criteria and availability change regularly. Always verify current scheme details with the relevant government agency. This article provides general information only. For advice tailored to your situation, speak with a licensed mortgage broker or financial adviser. Find one through MoneySmart.
Disclosure: This article contains general comparisons of government schemes. Peakifi does not receive commissions from any government scheme administrator.