Help to Buy Scheme. How to apply and qualify in 2026

Complete 2026 guide to Help to Buy: eligibility, property price caps, application steps, and real savings examples. Expert mortgage broker help to navigate the 2% deposit scheme.

The federal government’s Help to Buy scheme opened for applications on December 5, 2024. With only 10,000 spots available each year and demand expected to far exceed supply, understanding whether you qualify—and acting quickly if you do—could be the difference between homeownership this year or waiting indefinitely.

If you’re earning under $100,000 individually or $160,000 as a couple, you’ve managed to save a 2% deposit, but you’re still falling short of being able to buy, this shared equity program might bridge that gap. But it’s complex, it’s not right for everyone, and the limited places mean you need to move fast.

“For families and individuals including essential workers, Help to Buy offers a meaningful pathway to home ownership,” Housing Australia chief executive Scott Langford said when announcing the program’s launch.

If you’re serious about applying, working with a mortgage broker who specializes in government schemes can significantly improve your chances of securing one of those 10,000 annual spots.

What is the Help to Buy shared equity scheme?

Under this program, the Australian Government becomes a co-owner of your home by contributing toward the purchase price. You’ll own 60-70% of the property, they’ll own 30-40%, and you’ll share proportionally in any gains or losses when you eventually sell or buy them out.

Here’s a practical example. You’re purchasing an existing home for $800,000. Under Help to Buy, the government contributes 30% ($240,000), you provide a 2% deposit ($16,000), and you secure a mortgage for the remaining $544,000. Your loan-to-value ratio is 68%—well under the 80% threshold where Lenders Mortgage Insurance typically kicks in.

The crucial difference from a traditional loan: you’re not borrowing the government’s $240,000. They’re investing it as an equity partner. You won’t make any repayments on their share during your loan term, but you will eventually need to repay it—either by buying back their equity incrementally over time, or when you sell the property.

How much the government contributes:

• Existing homes: up to 30% of the purchase price
• New homes: up to 40% of the purchase price

Housing Australia administers the entire program on behalf of the Commonwealth, processing applications, managing equity stakes, and overseeing participant obligations. Over four years, the scheme will assist up to 40,000 households.

One important note: Western Australia and Tasmania hadn’t passed the necessary state legislation by the scheme’s December launch, so buyers in those states initially couldn’t participate. Check with Housing Australia or your lender for current status if you’re in WA or Tasmania.

Who qualifies for the Help to Buy scheme?

You’ll need to meet specific income thresholds, property ownership criteria, and demonstrate you can service the mortgage portion you’re borrowing.

Income limits: Are you under the caps?

Individual applicants: Maximum $100,000 annual taxable income
Couples and single parents: Maximum $160,000 combined annual taxable income

These limits are based on your most recent tax return. If you’re sitting just under the threshold, factor in expected income changes—because if you exceed these caps for two consecutive years after purchasing, Housing Australia may require you to buy back part or all of the government’s share.

For context, $100,000 individual income or $160,000 household income covers a significant portion of essential workers (nurses, teachers, paramedics, early childhood educators, police officers) and moderate-income families who’ve been priced out of major city markets.

Property ownership status: Can you currently own anything?

You cannot currently own property or land anywhere in Australia or overseas when you apply. This is a hard requirement.

But here’s what many people miss: you don’t need to be a first-time buyer. If you previously owned a property, sold it, and currently own nothing, you can still qualify. This differs from the First Home Guarantee, which requires you to either never have owned property or not have owned in the last 10 years.

There’s a specific exception for eligible single parents who may be divesting from a jointly owned property following separation.

Deposit and borrowing capacity: Can you afford the loan?

Minimum deposit: 2% of the property purchase price
For a $700,000 home: $14,000 deposit
For an $800,000 home: $16,000 deposit

This is dramatically lower than the traditional 20% ($140,000-$160,000) or even the 5% required under the First Home Guarantee.

But—and this is critical—you still need to prove you can service the loan. Most lenders cap borrowing at roughly six times your annual income. So if you earn $80,000, you’d typically borrow no more than $480,000. The government’s equity contribution bridges the gap between what you can borrow and the property’s price.

You’ll also need to cover stamp duty, legal fees, building inspections, conveyancing costs, and other settlement expenses separately. These aren’t included in the 2% deposit calculation.

Property requirements: What can you buy?

Must be:

• Your principal place of residence (not an investment property)
• Priced at or below the cap for your state and region
• Either new or existing: houses, townhouses, apartments, or house and land packages all qualify

Cannot be:

• A property you plan to rent out
• Located in a postcode where the price exceeds the cap
• Purchased using other Commonwealth shared equity or guarantee schemes

Target groups: Who is this designed for?

While anyone meeting the criteria can apply, the scheme specifically targets:

• First-home buyers struggling with deposit requirements despite consistent saving
• Essential workers on moderate incomes serving their communities
• Single parents navigating property ownership alone
• Young families earning steady incomes but priced out by deposit barriers

Property price caps: What can you afford in your state?

The 2025 Federal Budget significantly raised Help to Buy price caps, linking them to average house values rather than apartment/unit dwelling prices. As Housing Minister Clare O’Neil explained when announcing the changes: “In Brisbane, for example, we’re raising property price caps from what were $700,000 to now $1m. In Melbourne from $850,000 to $950,000, and in Sydney from $950,000 to $1.3m.”

Major city price caps (2025 budget figures)

New South Wales:

• Sydney and regional centres (Newcastle, Wollongong, Central Coast): $1.3 million
• Rest of NSW: varies by region, generally lower

Victoria:

• Melbourne: $950,000
• Geelong (regional centre): $950,000
• Rest of Victoria: varies by region

Queensland:

• Brisbane: $1 million
• Gold Coast and Sunshine Coast (regional centres): $1 million
• Rest of Queensland: varies by region

South Australia:

• Adelaide: $700,000
• Regional SA: lower caps apply

Western Australia:

• Not yet participating (pending state legislation passage)
• Price caps to be confirmed once operational

Tasmania:

• Hobart: $700,000
• Currently not participating (pending state legislation)

Australian Capital Territory:

• Canberra: $1 million

Northern Territory:

• Darwin and regional NT: varies by location

Regional and remote areas generally have lower caps reflecting local market conditions. The government states that more than 5 million properties across Australia fall under these thresholds.

How to find your exact cap: Use Housing Australia’s postcode search tool on the First Home Buyers website. Both the purchase price and your lender’s valuation must fall at or below the cap for your property to qualify.

How does the Help to Buy application process work?

You can’t apply directly to Housing Australia. Applications must go through a participating lender, and right now, only two lenders offer the scheme: Commonwealth Bank and Bank Australia. More lenders are expected to join throughout 2026.

Step 1: Check your eligibility first

Before approaching a lender, use the eligibility checker on Housing Australia’s website. This quick assessment tells you whether you meet the basic criteria. Better yet, speak with a mortgage broker who can review your complete financial situation and advise whether Help to Buy is actually your best option—or whether the First Home Guarantee, a state scheme, or waiting to save more makes better financial sense for your circumstances.

Step 2: Gather your documentation

You’ll need to provide:

• Recent payslips (usually last 3 months)
• Tax returns and assessment notices (last 1-2 years)
• Bank statements showing savings history (typically 3-6 months)
• Employment verification letter
• Identification documents (driver’s licence, passport, Medicare card)
• Proof of any other income sources
• Details of existing debts and financial commitments

Having everything organized before approaching a lender speeds up your application and demonstrates you’re a serious buyer competing for limited spots.

Step 3: Apply through Commonwealth Bank or Bank Australia

Commonwealth Bank: You must apply in person at a branch. CBA has restricted Help to Buy applications to their branch network—you cannot apply online or over the phone. Book an appointment with a Home Lending Specialist.

Bank Australia: Offers more flexibility in how you can apply and is marketed specifically toward values-based banking and first-home buyers.

Your lender will assess:

• Your income and employment stability
• Your savings pattern and deposit source
• Your borrowing capacity based on the mortgage amount you need
• Your credit history and existing debts
• The property you’re planning to purchase (if identified)

Step 4: Conditional approval and Housing Australia submission

Once your lender completes their assessment, they submit your conditional approval application to Housing Australia. If approved, your place in the scheme is reserved for 90 days—matching your loan pre-approval period. You can request one 90-day extension before this expires if you need more time to find the right property.

Your confirmation letter will specify:

• Your maximum purchase price
• Reservation expiry date
• State or territory you applied in
• Next steps for finalizing your application

Step 5: Find your property

With pre-approval secured, you can start house hunting within the requirements. Your property must:

• Fall under the price cap for your region
• Meet your lender’s lending criteria
• Be your intended principal residence
• Comply with any state-specific requirements

Step 6: Final approval and settlement

Once your offer is accepted, your lender submits the final application to Housing Australia. You’ll sign several documents:

• The Participation Agreement with Housing Australia (outlines your obligations)
• National Mortgage Form (registers the government’s equity stake)
• Standard home loan documents with your lender

Get legal advice from a solicitor or conveyancer before signing—these agreements create long-term obligations beyond a standard mortgage.

Before settlement, you must:

• Arrange building insurance covering the full property value
• Provide proof of insurance to both your lender and Housing Australia
• Complete all standard pre-settlement requirements

On settlement day, the funds transfer, the government’s equity contribution is registered as a second mortgage over the property, ownership finalizes, and you receive the keys.

Timeline expectations: From initial application to settlement typically takes 8-12 weeks, assuming you find a suitable property quickly. Given only 10,000 annual places are available and demand is high, applying early in the financial year may improve your chances.

Help to Buy vs First Home Guarantee: Which scheme saves you more?

These are two completely different government programs, and you can’t combine them—you need to choose one.

How they differ

First Home Guarantee (expanded October 2025):

• 5% deposit minimum
• You own 100% of the property from day one
• Government guarantees up to 15% of the loan, removing the need for LMI
• No income caps (removed October 2025)
• Unlimited places available
• Must be a first-home buyer or not owned property in the last 10 years
• Must remain owner-occupied while guarantee is active

Help to Buy:

• 2% deposit minimum
• You own 60-70%, government owns 30-40%
• Government contributes equity, reducing your loan size
• Income caps: $100k individuals, $160k couples
• Limited to 10,000 places per year
• Don’t need to be a first-home buyer, just can’t currently own property
• Must remain your principal residence

Real numbers: Which costs less?

Let’s compare using an $800,000 existing home purchase:

Scenario 1: First Home Guarantee

• Deposit (5%): $40,000
• Loan amount: $760,000
• Monthly repayment (6% interest, 30 years): $4,556
• LMI saved: ~$20,000
• You own: 100%

Scenario 2: Help to Buy

• Deposit (2%): $16,000
• Government equity (30%): $240,000
• Loan amount: $544,000
• Monthly repayment (6% interest, 30 years): $3,263
• LMI saved: ~$15,000
• You own: 70%
• Monthly saving vs First Home Guarantee: $1,293

That $1,293 monthly saving adds up to $15,516 per year or $77,580 over five years. But there’s a catch.

After 5 years (assuming 5% annual growth):

Your $800,000 property is now worth ~$1,021,000.

First Home Guarantee buyer:

• Owns 100% of $1,021,000 property
• Equity built: ~$221,000 (growth) + principal paid down
• Can sell and keep all gains, or refinance freely

Help to Buy buyer:

• Owns 70% of $1,021,000 property (= $714,700)
• Government owns 30% (= $306,300)
• To buy back government’s share: need $306,300 (based on current value, not their original $240,000)
• Total to own 100%: government’s $306,300 + remaining mortgage balance

Analysis by Money.com.au shows Help to Buy buyers pay less total interest over the loan life because they’re borrowing less. But they only build equity in their 60-70% ownership share, while the government shares proportionally in capital growth.

Who should choose Help to Buy?

Best for you if:

• You can only manage a 2% deposit despite consistent saving
• Your income sits comfortably under the caps ($100k/$160k)
• You’re comfortable with shared ownership for the medium term
• Your income is likely to grow, allowing you to buy back the government’s share within 5-10 years
• Lower monthly repayments are a priority for cash flow
• You’re buying in an expensive market where even 5% is out of reach

Who should choose First Home Guarantee?

Better option if:

• You can stretch to a 5% deposit
• Your income already exceeds or soon will exceed Help to Buy caps
• You want 100% ownership from day one
• You prefer keeping all capital gains as property values rise
• You want maximum flexibility to renovate, refinance, or convert to investment later
• You value simplicity over complexity

A mortgage broker can model both scenarios based on your specific income, savings, target property, and long-term goals—helping you make the choice that saves you the most money over 5, 10, or 30 years.

How do you repay the government’s equity share?

This is where Help to Buy differs most significantly from a standard mortgage. The Commonwealth’s contribution must eventually be repaid, but you have several options for when and how.

Buying back their share incrementally

You can purchase additional stakes in your home from the government’s equity as your financial situation improves. The minimum buy-back is 5% of the property’s current market value at the time of repurchase.

Example: The government holds 30% equity in your $800,000 property (their original contribution: $240,000). Two years later, your property is worth $880,000. You want to buy back 5%.

• 5% of current value ($880,000) = $44,000
• After this buy-back, you own 75%, government owns 25%
• You can continue buying back 5% chunks whenever you have funds available

This allows you to gradually work toward full ownership at your own pace.

Repayment when you sell

When you sell the property, the government receives their percentage share of the sale price—not their original contribution. This is crucial.

Example: You bought for $800,000 with a 30% government contribution ($240,000). Five years later, you sell for $1 million.

• Government receives: 30% of $1,000,000 = $300,000 (not the original $240,000)
• You receive: 70% of $1,000,000 = $700,000, minus your remaining mortgage balance
• The government shares proportionally in both gains and losses

If your property decreased in value to $750,000, the government would receive 30% of $750,000 ($225,000), sharing the loss with you.

Forced repayment if your income increases

If your annual income exceeds the eligibility thresholds ($100,000 individual / $160,000 couple) for two consecutive years, you may be required to buy back the government’s share either partially or fully.

Housing Australia has some flexibility in how they enforce this. They’ll review your circumstances and work with you to determine whether you can afford to take on additional debt to buy out some or all of their stake. You’d typically return to your lender to assess whether you can refinance to a larger loan amount.

All repayments are based on current market value

Whether you’re buying back incrementally or repaying in full, the amount is always calculated on the property’s current market value—not the original purchase price. This protects the government’s investment and ensures they share in capital growth.

What this means: If property values have risen significantly in your area, buying back the government’s share becomes more expensive than their original contribution. This is the trade-off for lower initial repayments.

Is Help to Buy right for you?

Like any major financial decision, this scheme has clear advantages for some buyers and significant drawbacks for others.

Advantages

• Much lower deposit barrier: just 2% vs traditional 20%
• Significantly smaller mortgage reduces monthly repayments
• No repayments owed on the government’s 30-40% equity during your loan
• Avoid Lenders Mortgage Insurance, saving $15,000-$30,000
• Faster pathway to homeownership if you’ve saved what you can
• Access to better locations or larger properties than you could afford with traditional lending

Disadvantages

• You don’t own 100% of your property—government holds 30-40% equity
• You only build equity in your 60-70% ownership share
• Repayment is based on current market value, not the government’s original contribution
• Income growth might force early repayment before you’re ready
• More complex than a standard mortgage with ongoing Housing Australia obligations
• Very limited lender options (currently just two banks)
• Refinancing to a non-participating lender requires buying back government’s share first
• Shared ownership may limit renovation decisions

Who benefits most from this scheme?

You’re likely a good candidate if:

• You’re an essential worker (nurse, teacher, paramedic, early childhood educator, police officer) earning moderate income
• You’ve been saving consistently but can’t reach the 5% deposit threshold in expensive markets
• You’re confident your income will grow over the next 5-10 years, allowing incremental buy-backs
• You’re buying in Sydney, Melbourne, or Brisbane where even modest properties require large deposits
• Lower monthly repayments give you breathing room for other expenses
• You prioritize getting into the market now over maximizing long-term capital gains

When it probably doesn’t make sense

Consider alternatives if:

• Your income is already approaching the caps or you expect rapid income growth
• You’re buying in a market with strong predicted capital growth and want to keep all gains
• You plan extensive renovations or need full control over property decisions
• You can stretch to a 5% deposit and qualify for the First Home Guarantee
• You might need to relocate or sell within 3-5 years
• The complexity and ongoing obligations make you uncomfortable

How Attain Loans and Mortgages helps you navigate Help to Buy

With only 10,000 spots available annually, strong demand, complex eligibility requirements, and just two participating lenders, having expert guidance can be the difference between securing a place and missing out.

Complete eligibility assessment and scheme comparison

We review your complete financial picture—income, savings, employment, debts, long-term goals—and advise whether Help to Buy is genuinely your best option. Sometimes the First Home Guarantee makes more sense. Sometimes a state-based scheme offers better terms. Sometimes waiting to save another 3% delivers better long-term value. We’ll model different scenarios with real numbers and show you the 5, 10, and 30-year outcomes for each option.

Strategic lender selection

With only CBA and Bank Australia currently offering Help to Buy, choosing the right lender matters. We have direct relationships with both and understand their:

• Interest rates and product features
• Servicing calculations and approval criteria
• Application processing times
• Customer service quality
• Ongoing account management

We’ll guide you toward the lender more likely to approve your application and offer better long-term terms. And when new lenders join the panel throughout 2026, you’ll be first to know about potentially better deals.

Maximizing other benefits and grants

While you can’t stack Help to Buy with the First Home Guarantee, you can combine it with:

• First Home Owners Grant (where applicable)
• State stamp duty exemptions or concessions
• First Home Super Saver Scheme
• Various state-specific programs

We identify every incentive you’re eligible for and structure your application to maximize total benefits—potentially saving you tens of thousands beyond the Help to Buy scheme itself.

Application preparation and timing strategy

We know exactly what documentation Housing Australia and the lenders require. We’ll help you compile everything before approaching a lender, ensuring your application is complete, accurate, and compelling. Given limited annual places, timing matters—we can advise when to apply for the best chance of securing a spot.

Understanding your long-term obligations

The Participation Agreement you sign with Housing Australia creates obligations beyond a standard mortgage. We walk you through:

• Scenarios that might trigger forced repayment
• Your rights and responsibilities as a shared equity participant
• Renovation restrictions and approval requirements
• What happens if you need to sell earlier than planned
• How to plan your exit strategy from the program

Property search within price caps

We know which suburbs and property types in your target area fall within the Help to Buy caps. This saves you time searching for homes that won’t qualify and helps you focus on properties that align with both the scheme requirements and your lifestyle needs.

Post-approval support

Our relationship doesn’t end at settlement. As your circumstances change—income increases, you’re ready to buy back some equity, you’re considering renovations, you want to refinance—we’re here to advise on the implications for your Help to Buy obligations and help you navigate next steps.

Ready to explore whether Help to Buy is right for you? Book a consultation with Attain Loans and Mortgages. We’ll assess your eligibility, compare all available schemes, and if Help to Buy makes sense, guide you through every step of the application process to maximize your chances of securing one of the limited spots.

Further questions

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.