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Government's Help to Buy scheme offers co-ownership housing option. Low and middle-income buyers access property with 2% deposit and up to 40% government contribution.
The Australian Federal Government has created a new path to home ownership through its ‘Help to Buy’ scheme. This co-purchasing program supports 40,000 low and middle-income buyers over four years, addressing housing affordability challenges.
How the scheme works
The government acts as a co-owner, contributing up to 40% of the purchase price for new homes and 30% for existing properties. This arrangement lets buyers enter the market with a 2% deposit, without interest charges on the government’s share.
When buyers sell their property or choose to purchase the government’s portion, they repay the co-owned amount. A $500,000 home purchase with 40% government contribution requires borrowing of $300,000, reducing regular mortgage payments.
Price caps across Australia
The scheme includes location-based price limits. New South Wales sets caps at $950,000 for homes in capital cities and regional centres. Queensland caps purchases at $700,000. These limits aim to create equal access across different property markets.
Who qualifies for Help to Buy
Australian citizens aged 18 or older qualify if they earn under $90,000 individually or $120,000 as a household. Applicants must not own property in Australia or overseas when applying.
Understanding property value changes
Property value increases affect the government’s equity share. If a property with 30% government ownership increases by $100,000, the government’s share grows by $30,000. Annual checks review financial status and property values, which might impact continuing eligibility.
Program rollout across states
The Northern Territory and Australian Capital Territory offer immediate access. Other states need law changes before starting the program. The government plans to support 10,000 new buyers each year.
Further questions
What happens if property values fall under Help to Buy?
Can buyers renovate Help to Buy properties?
What income changes affect Help to Buy eligibility?
Does the scheme allow refinancing?
What investment restrictions apply to Help to Buy properties?
This is general information only and is subject to change at any given time. Your complete financial situation will need to be assessed before acceptance of any proposal or product.
