Help to Buy Scheme Australia: How It Works in 2026

Help to Buy is the Commonwealth's shared-equity scheme for eligible home buyers who can almost stretch to a purchase - but not quite. The government takes an equity stake so you borrow less, and you can enter with as little as a 2% deposit. This guide covers the current eligibility rules, price caps, and how to model the numbers before you apply. Confirm live figures on firsthomebuyers.gov.au - income thresholds index every 1 July.

The 30-second summary

• Shared equity: Housing Australia takes an equity share (typically up to 30% existing / 40% new home) so your loan is smaller.
• Deposit: minimum 2% from your savings, plus you must put in the maximum you can reasonably afford.
• Income caps (base figures, indexed annually): $100,000 individual / $160,000 joint or single parent.
• Price caps are state-specific (e.g. NSW capital $1.3m, VIC $950k, QLD $1.0m).
• You must be an Australian citizen, 18+, not currently owning property, and living in the home.
• Model borrowing and deposit with the borrowing capacity, purchasing power and savings goal calculators before you talk to a lender.

How shared equity changes the loan

Suppose you buy a $600,000 home. Without Help to Buy, an 80% LVR loan is $480,000 after a $120,000 deposit. With a 30% Commonwealth equity share ($180,000), your loan might be sized against the remaining ~$420,000 of the price - less principal, smaller repayments, and often no LMI because the combined buyer-plus-government stake covers more of the value.

Exact loan sizing is set by the participating lender and Housing Australia. The point for planning: run your numbers as if you are buying a smaller share of the home, then stress-test stamp duty and cash costs separately.

Eligibility checklist

You generally need all of the following (paraphrased from Housing Australia materials):

1. Australian citizen, aged 18+
2. Not currently own property or land in Australia or overseas (limited single-parent exceptions)
3. Will live in the home as your principal place of residence
4. Taxable income at or below the current income cap on last year's ATO Notice of Assessment
5. Purchase price at or below the cap for that location
6. At least a 2% deposit from savings, plus maximum reasonable contribution
7. Loan approval from a participating lender
8. Home insurance (a scheme requirement)

Permanent residents are not eligible under the published citizen rule - do not assume PR status is enough.

Income caps

Applicant type	Taxable income cap (base)
Individual	$100,000
Joint applicants / single parents	$160,000

These figures are indexed on 1 July each year. Always check firsthomebuyers.gov.au for the year you are applying.

Property price caps (capital city / regional centre vs other)

State / Territory	Capital city & regional centre	Other
NSW	$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	-
Northern Territory	$600,000	-

Participating jurisdictions and exact suburb classifications change - confirm the property against Housing Australia before you sign.

Worked planning example

Item	Figure
Target purchase price	$600,000 (under VIC capital cap)
Your savings / deposit	$30,000 (5%)
Assumed Commonwealth share	30% = $180,000
Remainder to fund	$390,000
Your cash still needed	Deposit + stamp duty + legal + inspections

Use:

• Borrowing capacity calculator - can you service the loan on the reduced principal?
• Purchasing power calculator - what price band is realistic with your deposit and borrowing?
• Stamp duty calculator - FHB concessions still matter; Help to Buy does not pay your duty.
• Savings goal (deposit) - months to the 2% floor vs a more comfortable buffer.

Also consider the First Home Super Saver Scheme if you are still building the deposit inside super.

FAQ

What is the Help to Buy scheme?

Help to Buy is an Australian Government shared-equity scheme administered by Housing Australia. Eligible buyers purchase with as little as a 2% deposit; the government takes an equity share so you borrow less from a participating lender.

What are the Help to Buy income caps?

$100,000 individual / $160,000 joint or single parent on last year's taxable income, indexed each 1 July. Confirm current figures on firsthomebuyers.gov.au.

What are the Help to Buy property price caps?

State-specific. Examples: NSW capital $1.3m, VIC $950k, QLD $1.0m, WA $850k, SA $900k, TAS $700k, ACT $1.0m, NT $600k. Regional "other" caps are lower.

How much deposit do I need for Help to Buy?

At least 2% from your savings, and the maximum you can reasonably afford. Stamp duty and other purchase costs are still yours to pay.

Who is eligible for Help to Buy?

Australian citizens 18+, not currently owning property, living in the home, within income and price caps, with a participating-lender loan.

Can I use Help to Buy with the First Home Guarantee?

No - pick one pathway. They are different Housing Australia products.

Do I have to buy back the government's share?

Yes over time, via voluntary buybacks and usually in full on sale or refinance under scheme rules. See the current Housing Australia customer guide.

How do I work out if Help to Buy is enough for me?

Model borrowing, deposit and purchase costs with the calculators above, then confirm with a participating lender and Housing Australia.

Sources

• Housing Australia / firsthomebuyers.gov.au - Help to Buy
• Help to Buy Program Directions 2025

Eligibility and caps change. This article is general information, not personal advice. Confirm every figure with Housing Australia and your lender before you rely on it.