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Australian Government Help to Buy Scheme (2025): How It Works – And How to Make It Work for You

From 5 December 2025, the Australian Government’s new Help to Buy Scheme opens for applications – and it’s going to change the way many Australians get into their own home.


If you’ve been watching prices climb while your savings struggle to keep up, this shared equity scheme could be the bridge between “almost there” and actually owning your home.


In this guide, we’ll break down:


  • What the Help to Buy Scheme is

  • Who can qualify

  • How the 2% deposit and 30–40% government contribution really work

  • Key risks and fine print most headlines skip

  • Where OwnerDeveloper can support you with feasibility, site selection and long-term property strategy


⚠️ Important: This article is general information only. Help to Buy is a government scheme delivered through participating lenders. OwnerDeveloper is not a lender and does not provide personal financial advice. Always seek independent legal, tax and financial advice before making decisions.


What Is the Australian Government Help to Buy Scheme?

Help to Buy is a shared equity scheme run by the Australian Government (via Housing Australia) to help more people own a home sooner.


In simple terms:

  • You contribute:

    • A minimum 2% deposit, plus

    • A home loan from a participating lender

  • The Government contributes:

    • Up to 30% of the purchase price for an existing home, or

    • Up to 40% of the purchase price for a new build or newly built home


In return:

  • You own and live in the home, but

  • The Government holds a proportional equity share, and

  • You share future gains (or losses) when you sell, or when you buy out the Government’s share.


You don’t pay rent on the Government’s portion, but you must eventually repay that contribution – either over time or when the property is sold.


Who Is Help to Buy For?

The scheme is designed for people who:


  • Are shut out of the market by the size of the deposit or borrowing gap

  • Have saved as much as they realistically can

  • Can service a home loan, but need extra help to reach the price of a suitable home


You must:

  • Be an Australian citizen

  • Be at least 18 years old

  • Have an annual taxable income:

    • Up to $100,000 for single applicants

    • Up to $160,000 for joint applicants and single parents

  • Have a minimum 2% deposit of the purchase price

  • Live in the home as your principal place of residence (no investment properties)

  • Not currently own any other property or land in Australia or overseas

    • Some limited exceptions may apply for single parents wanting to buy out a former partner or sell an existing shared property

  • Be buying within the price caps for your area

  • Apply through a participating lender (not directly with the Government)

Who Is Help to Buy For?

How the 2% Deposit and 30–40% Government Contribution Work

Let’s use a simple example so you can see the structure.


Example: Buying an $800,000 Home

Imagine you’re buying a home for $800,000 under the Help to Buy Scheme:

  • Your 2% deposit: $16,000

  • Your home loan (from a participating lender): $544,000

  • Government contribution (30%): $240,000


Total purchase price: $800,000


What this means in practice:

  • Your loan-to-value ratio (LVR) is much lower than if you borrowed the entire amount yourself

  • You avoid lenders’ mortgage insurance (LMI) because the combined deposit + Government share is at least 20%

  • Your monthly repayments are lower than they would be on a standard 90–95% home loan


However:

  • The Government owns 30% of the property value in this example

  • If the property grows to $1,000,000, that 30% becomes $300,000

  • If the market falls, the Government share falls too – it is truly shared equity


You can buy back the Government’s share over time (sometimes called “staircasing”) through:

  • Voluntary repayments

  • Additional lending

  • Or clearing it when you sell the home


Property Price Caps – How Much Can You Actually Spend?

You can’t buy any property at any price under Help to Buy. There are maximum price caps based on state and region.


Some key examples (rounded, based on current government releases):

  • NSW

    • Sydney + major regional centres (e.g. Newcastle, Central Coast, Illawarra): up to $1.3 million

    • Other NSW locations: up to $800,000

  • VIC

    • Melbourne + Geelong: up to $950,000

    • Other VIC locations: up to $650,000

  • QLD

    • Brisbane + Gold Coast + Sunshine Coast: up to $1,000,000

    • Other QLD locations: up to $700,000

  • SA, ACT, NT and others

    • Have their own caps that reflect local markets (for example, SA’s capital city cap is lower than Sydney, ACT is capped at $1 million, etc.)


You’ll need to use the official postcode price-cap tools (on the First Home Buyers / Housing Australia sites) to confirm what applies to your exact area and property type.


Where Is Help to Buy Available?

As at launch, the scheme is available in:


  • NSW

  • VIC

  • QLD

  • SA

  • ACT

  • NT


Some states (like WA and TAS) are expected to join later once enabling legislation is passed.


Always check the latest Government updates for current participating states and territories.


Which Lenders Offer Help to Buy?

Applications don’t go through Housing Australia directly – they must go through a participating lender.


At launch, this list includes:

  • Commonwealth Bank

  • Bank Australia


More lenders are expected to join over time.


Each lender will:

  • Check your eligibility

  • Assess your borrowing capacity

  • Submit your Help to Buy application to Housing Australia for conditional approval


✅ OwnerDeveloper is not a lender and does not place you into the scheme. We can, however, help you understand how the scheme fits within your longer-term property and development strategy before you speak with a lender or broker.


Step-by-Step: How to Apply for Help to Buy

Here’s the typical journey:


1. Check your eligibility

Use the official online eligibility tools to quickly see whether you meet:


  • Citizenship and age requirements

  • Income thresholds

  • Deposit requirements

  • Property ownership rules


If you pass the basic tests, move to the next step.


2. Speak to a participating lender (and your adviser)

You’ll need to:


  • Choose a participating lender

  • Provide income, savings and expense details

  • Get clear on your borrowing capacity


Because Help to Buy is a long-term shared equity commitment, it’s wise to speak with:


  • A qualified financial adviser

  • A tax adviser

  • And, if you’re thinking ahead to development, a property development consultant like OwnerDeveloper


3. Get conditional approval and reserve your place

If you qualify:


  • Your lender submits your application to Housing Australia

  • If accepted, you receive conditional approval

  • You then usually have up to 90 days to find a suitable property within your approved budget and the price caps


4. Find and secure the right property

Once you have conditional approval:


  • Look for homes within your price cap and borrowing limit

  • Consider not just “can I live here?” but also:

    • Build quality

    • Local planning controls

    • Long-term growth and development potential


💡 This is where OwnerDeveloper can add real value – helping you avoid poor-quality stock and understand the planning and development potential of a site before you commit.


5. Final approval, settlement and ongoing obligations

When you sign a contract:


  • Your solicitor / conveyancer handles the contract of sale and settlement

  • The lender and Housing Australia finalise your Help to Buy participation

  • The Government is registered as a second mortgagee over the property

  • You move in and begin your loan repayments


Ongoing, you must:

  • Live in the home as your principal residence

  • Maintain and insure the property

  • Provide updated income information when required

  • Meet any reviews that check continued eligibility


If your circumstances change (e.g. income exceeds the thresholds), you may eventually be required to buy back some or all of the Government’s share.

Final approval, settlement and ongoing obligations

Help to Buy vs Other Government Home Buyer Schemes

Help to Buy sits alongside (not on top of) other Government initiatives, such as:


  • 5% Deposit Scheme (government guarantee instead of shared equity)

  • First Home Owner Grants (state-based cash grants)

  • First Home Super Saver Scheme (saving through super)


You generally can’t stack Help to Buy with other shared equity / guarantee schemes, but you may still be able to receive:

  • Stamp duty concessions or exemptions

  • First home buyer grants, depending on your state


Each program has different rules – always check current eligibility and ask your adviser what you can and can’t combine.


The Upside – And the Fine Print You Shouldn’t Ignore


Potential benefits

  • Lower deposit barrier: Enter the market with as little as 2%

  • Smaller mortgage: Lower repayments compared to borrowing the full price yourself

  • No LMI: The combined deposit + Government share usually removes the need for lenders’ mortgage insurance

  • Access to better quality stock: The Government share can move you from “compromise” properties into homes that actually suit your needs


Key considerations and risks

  • You’re sharing the upside: If your home doubles in value, the Government’s share doubles too

  • You’re sharing the downside: If the market falls, the Government’s equity shrinks – but your loan size stays the same

  • Limited places: Only 10,000 places per year nationally for several years

  • Ongoing eligibility checks: If your income grows beyond the cap, you may be required to buy back equity sooner

  • Not for investors: You must live in the property; it’s not a strategy for immediate investment stock


How OwnerDeveloper Can Help You Use Help to Buy Strategically

OwnerDeveloper works with homeowners and aspiring developers across NSW and QLD to turn property decisions into long-term wealth strategies – not just one-off purchases.


If you’re considering the Help to Buy Scheme, we can help you:


1. Choose smarter sites – not just “whatever the bank approves”

We can:

  • Review site feasibility before you commit

  • Flag red-flag issues like flood, easements, zoning constraints or poor-quality construction

  • Help you compare properties not just on price – but on future potential


2. Think beyond “first home” toward “first small development”

Even though Help to Buy must be used for an owner-occupied home, you can still think ahead.


We can help you:


  • Understand whether a site may support future upgrades – e.g. extensions, granny flats or, in time, small redevelopment (once you’re no longer in the scheme)

  • Plan a longer-term path from homeowner to small-scale developer using your equity and experience


3. Align your property choice with future duplex or small project potential

If you’re dreaming of:


we can help you:

  • Understand local planning rules (e.g. zoning, height, FSR, subdivision potential)

  • Avoid properties that lock you out of future options

  • Build a clear “stage 1: home buyer → stage 2: small developer” road map


🏗️ OwnerDeveloper doesn’t sell property, doesn’t place loans, and doesn’t receive commissions from banks. Our job is to help you make the most of your land, your equity and your opportunities – whether that’s now or in the future.


Thinking About Using Help to Buy? Let’s Talk Strategy First.

Before you sign a contract or lock yourself into a 30-year commitment, it’s worth asking:


  • Is this property the right one to start my long-term wealth journey?

  • How could this decision set me up for future projects like a duplex, manor home, or multi-dwelling development?

  • What’s my exit plan from the scheme and into full ownership or my next project?


That’s exactly what we help our clients work through.



If you’re:

  • Eligible (or close to eligible) for Help to Buy, and

  • Based in NSW or QLD, and

  • Serious about using your first home as a stepping stone into small-scale property development


…then a quick strategy call with OwnerDeveloper can save you years of trial and error.



  • Whether your plan makes sense in the current market

  • How to avoid common first-home and first-project mistakes

  • What steps you can take now to set up your future duplex or development project


Own your home sooner – and make sure it also moves you closer to the life and financial freedom you actually want.

Thinking About Using Help to Buy? Let’s Talk Strategy First.

 
 
 
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