Last Updated: 24th January, 2024

What Is The Help To Buy Scheme?

The Help to Buy Scheme, introduced by the Australian Labor Party, is a shared equity scheme wherein the government helps Australians purchase a home by contributing up to 40% of the property price for a new home and up to 30% for an existing one. Participants need just a 2% deposit and do not have to pay Lenders Mortgage Insurance. They also do not have to pay rent on the portion of the home the government owns and they can buy out the government’s share when they are able. The scheme is designed to help with the longstanding affordability crisis. There would be 10,000 places available for eligible Australians each year. Visual representation of help to buy scheme with a real-life scenario

Help To Buy Eligibility Calculator

Discover your eligibility for the Help To Buy Scheme with our user-friendly calculator. By answering a few simple questions, you can instantly find out if you meet the criteria and qualify for the scheme.

When Will It Be Available?

The Help to Buy Scheme is set to commence in 2024.

Who Is Eligible For The Help To Buy Scheme?

Criteria Eligibility Requirements
  • Individual gross income must not exceed $90,000 a year
  • Gross income for couples applying together must not exceed $120,000 a year
  • If income exceeds the maximum allowed for two consecutive years, participants will have to repay the government’s financial contribution in part or whole, as their circumstances permit.
  • Property ownership and residency
  • Must have no land or property under your name in Australia or overseas
  • Property purchased through the scheme must be participants’ primary residence
  • Age and citizenship
  • Must be at least 18 years old
  • Must be an Australian citizen
  • Permanent residents aren’t eligible
  • Deposit and other expenses
  • Minimum deposit 2%
  • Participants must pay legal costs, conveyancing fees, stamp duty, and any related taxes or expenses
  • Type of housing Participants can purchase a new or existing home that is one of the following types:
  • Stand-alone house
  • Semi-detached house
  • Duplex
  • Townhouse
  • Unit
  • Other requirements
  • Must pass the serviceability test of the lender and qualify for a home loan
  • Let our Home Loan Experts navigate the requirements of the scheme for you. We’ll sort out whether you qualify. Call us on 1300 889 743or fill in our free assessment form today.

    How Much Will I Save?

    The savings on a property through the scheme will depend on the property’s price. Based on the price cap for different locations, a 40% equity contribution from the government for purchasing a new house can save you anywhere from $120,000 to $380,000. A 30% equity contribution from the government to purchase an established home can save anywhere from $120,000 to $285,000. The chart below shows price caps for properties in different locations and the maximum the government would pay under the scheme, based on the property type.
    Region Property Price Cap Savings On New Home At Maximum Price Savings On Existing Home At Maximum Price
    NSW – Sydney and regional centres
    (Newcastle, Lake Macquarie and Illawarra)
    $950,000 $380,000 $285,000
    NSW – rest of state $600,000 $240,000 $180,000
    VIC – Melbourne and regional centre
    $850,000 $340,000 $255,000
    VIC – rest of state $550,000 $220,000 $165,000
    QLD – Brisbane and regional centres
    (Gold Coast and Sunshine Coast)
    $650,000 $260,000 $195,000
    QLD – rest of state $500,000 $200,000 $150,000
    WA – Perth $550,000 $220,000 $165,000
    WA – rest of state $400,000 $160,000 $120,000
    SA – Adelaide $550,000 $220,000 $165,000
    SA – rest of state $400,000 $160,000 $120,000
    TAS – Hobart $550,000 $220,000 $165,000
    TAS – rest of state $400,000 $160,000 $120,000
    ACT $600,000 $240,000 $180,000
    Northern Territory $550,000 $220,000 $165,000

    Does Help To Buy Allow You To Buy Out The Government’s Stake?

    Participants in Help to Buy do not have to pay rent on the portion of the home the government owns. They can also buy out the government’s equity – at least 5% at a time – when they are able.

    How To Apply For The Help To Buy Scheme

    We at Home Loan Experts can assist you with applying for the Help to Buy scheme when the government starts accepting applications for it. Even if you don’t qualify for the scheme, there are other programs for you to choose from, including the following: With limited places available, competition for a spot in this scheme is sure to be fierce. Don’t delay! Discuss your situation with our mortgage brokers today, and we’ll find the best home loan scheme for your situation. Call us on 1300 889 743 or fill in our free assessment form.