Will I pay rent or interest on the government's share?

No. You do not pay rent or interest on the government's equity contribution. You only pay your mortgage repayments to your lender.

Can I buy back the government's share? When and how?

Yes. You can progressively buy back the government's share at market value through voluntary payments. You must also repay it when you sell or exit the scheme.

What are my ongoing obligations while in the scheme?

You must live in the home as your principal residence and keep it insured and well maintained. Regular income reviews also apply to ensure continued eligibility.

What types of properties are eligible?

Eligible properties include new builds, off-the-plan homes, and existing residential properties. All homes must fall within the scheme's property price caps.

Which lenders are participating?

Use Housing Australia's current participating-lender list. Your lender assesses the home loan and submits the scheme application on your behalf.

How many places are available and how is demand managed?

There are 10,000 places available each year. Applications go through participating lenders and depend on eligibility and availability.

Can I combine with other first-home buyer assistance or grants?

Eligible grants and stamp duty concessions can be used with Help to Buy. You cannot combine it with the Australian Government 5% Deposit Scheme or other government shared equity, loan or guarantee assistance for the same purchase. Check each benefit separately.

What happens if I sell the house for a profit?

When you sell, the government receives its percentage share of the sale price. This means your repayment increases if the property has risen in value.

When do I have to pay the government back?

You repay its share when you sell or leave the scheme. You can also make voluntary buybacks, and Housing Australia may require payments following a financial review. Refinancing to a non-participating lender requires a full buyout; refinancing within the panel is subject to approval.

Who pays for maintenance and rates?

You are fully responsible for council rates, maintenance, and repairs. The government does not contribute to ongoing property costs.

Can I rent out my Help to Buy property?

No. The property must remain owner-occupied at all times. Renting it out breaches the scheme conditions.

Is the Help to Buy Scheme better than the First Home Guarantee?

It depends on what is holding you back. Help to Buy reduces the mortgage through shared equity. The Australian Government 5% Deposit Scheme helps eligible buyers avoid LMI while keeping the full equity interest. Compare the repayments, savings needed and future obligations.

Is Shared Equity Right For Long-Term Wealth?

The government shares in any increase in the property's value, so you keep less of that gain than you would with full ownership. In return, you need a smaller mortgage at the start. I'd compare what you can afford now with the cost of buying back the share later.

Help to Buy scheme: buying with a 2% deposit

Help to Buy is open for applications. It lets eligible buyers purchase a home with a deposit from 2% and a government equity contribution, reducing the mortgage they need.

Before you plan around a 2% deposit, I'd check whether you qualify and what sharing the home's future value means for you. A smaller mortgage now needs to work alongside your plans to sell, refinance or buy back the government's share later.

What is the Help to Buy scheme?

Help To Buy Scheme - What is it? — Help to Buy reduces the mortgage you need by sharing the cost of the property.

The Australian Government Help to Buy Scheme can contribute up to 30% of an existing home's price or up to 40% for a new home. Your deposit and a mortgage cover the rest.

You own the property and live in it. The government holds a financial interest in its value. The amount you eventually repay changes with the value of the home.

Both first-home buyers and previous owners may qualify. You generally cannot own other property when you apply, with limited exceptions for single parents.

How does Help to Buy work?

You contribute at least a 2% deposit and must put in the maximum amount you can reasonably afford. You also need money for buying costs.
A participating lender assesses what you can borrow and repay. The government contribution fills the remaining gap, up to the scheme limits. Approval and the maximum contribution are not automatic.
You do not pay lenders mortgage insurance under the scheme, or rent or interest on the government's share.
There are 10,000 places available each year. Apply through a participating lender, subject to eligibility and availability.
For the 2026/27 financial year, the taxable-income limits are $103,000 for a single applicant and $165,000 for a single parent or joint applicants combined. See the current income thresholds.

Hypothetical example: for a $700,000 new home with the maximum 40% government contribution, a $14,000 deposit plus $280,000 from the government leaves a $406,000 mortgage. Buying costs are extra. A lender must still assess the application.

How do I repay the government?

help to buy scheme for first home buyers 3

You can buy back the government's share over time or repay it when you sell. Housing Australia can also require repayments after a financial review where you have capacity to pay.

The repayment is based on the property's value at that time. In a hypothetical example, a 40% contribution towards a $700,000 new home is $280,000. If the home is later valued at $800,000 and that share is still 40%, buying it back would cost $320,000. This assumes no adjustment to the share or transaction costs.

A rise in your home's value can make the buyback more expensive. I would include that in your plan from the start.

What Help to Buy can help with

help to buy scheme for first home buyers 4 — The smaller deposit and mortgage can help when saving enough to buy is the main obstacle.

A deposit from 2% can reduce the savings hurdle, although buying costs still need funding.
The government contribution reduces the mortgage you need, which can lower repayments compared with borrowing more at the same rate and term.
You do not pay lenders mortgage insurance or interest or rent on the government contribution.
You may qualify for separate grants or stamp duty concessions, subject to their rules.

Check to see if you are eligible for a home loan

What to consider before applying

The government shares in changes to the property's value. Buying back its share can cost more if the home rises in value.
Income limits, property price caps and the lender's repayment assessment restrict who can use the scheme.
You must live in the home while participating and meet ongoing review, insurance and maintenance requirements.
Renovating, refinancing and changes in ownership need to be checked against the scheme rules before you proceed.
You still pay the home's running costs, rates and maintenance. The government does not pay its equity percentage of those bills.

If you can buy without shared equity, compare the 5% Deposit Scheme as well. You cannot combine the two schemes on the same purchase.

Help to Buy is open: when and how to apply

Applications opened on 5 December 2025. Help to Buy is now available in all states and territories.

From 1 July 2026, annual indexation increased the income limits to $103,000 for a single applicant and $165,000 for single parents and joint applicants. The income test for 2026/27 uses your 2025/26 ATO Notice of Assessment. Property price caps are set separately and did not automatically rise with this indexation.

How do I apply?

Contact a participating lender. The lender checks your financial position and submits your application to Housing Australia. You cannot apply directly to Housing Australia.

Prepare identification, your latest Notice of Assessment, deposit evidence and details of income, debts and expenses. Before signing a contract, confirm the property qualifies and get legal advice about the shared equity arrangement.

Who is eligible for Help to Buy?

Every applicant must be an Australian citizen aged at least 18. Applying with a citizen does not make a permanent resident eligible.
Your taxable income must be within the current income limit.
You need a deposit of at least 2%, funds for buying costs and the ability to repay the lender's mortgage. The lender also assesses your savings, assets and debts.
You must live in the property as your main home while you remain in Help to Buy.
You generally cannot own another property in Australia or overseas. Specific single-parent provisions can apply to buying out a co-owner or selling an existing interest.
The purchase price must fit the cap for the location, and the property must satisfy the lender and scheme requirements.
The scheme is for buyers who need the assistance. If you can buy a suitable home using your savings, assets and borrowing capacity alone, you may not qualify.

Use the official eligibility tool as a starting point, then confirm your position with a participating lender.

Property price caps

I'd check the cap for the property's postcode before you start making offers. These are the maximum purchase prices allowed under the scheme.

help to buy scheme for first home buyers 8

State / Territory	Area	Maximum Property Price (Cap)
New South Wales (NSW)	Capital city & regional centres	$1,300,000
	Rest of NSW	$800,000
Victoria (VIC)	Capital city & regional centres	$950,000
	Rest of VIC	$650,000
Queensland (QLD)	Capital city & regional centres	$1,000,000
	Rest of QLD	$700,000
Western Australia (WA)	Capital city	$850,000
	Rest of WA	$600,000
South Australia (SA)	Capital city	$900,000
	Rest of SA	$500,000
Tasmania (TAS)	Capital city	$700,000
	Rest of TAS	$550,000
Australian Capital Territory (ACT)	Capital / all areas	$1,000,000
Northern Territory (NT)	All areas (or capital / regional)	$600,000

Check the official property price caps and postcode tool before making an offer. A price cap is not a borrowing approval.

Your responsibilities after buying

ongoing responsibility- Help to buy scheme

Keep the property as your main home, insured and maintained. You are responsible for rates, repairs and other running costs.
Housing Australia checks insurance annually and reviews taxable income at least every 5 years, or earlier if circumstances require it.
Tell Housing Australia about relevant changes, including refinancing, selling or major renovations. Additional borrowing is restricted.
Refinancing within the participating lender panel may be possible with approval. Moving to a non-participating lender requires buying out the government's share in full.
If you no longer meet the rules or have capacity to repay following a review, Housing Australia may require a payment. The agreement and your circumstances determine the next step.

Read the Help to Buy Customer Guide with your solicitor before signing. Make sure you understand when repayments can be required and what happens if your plans change.

Would you like to learn about your situation?

Is Help to Buy right for you?

I'd compare the repayments you can manage now with the cost of buying back the government's share later. Help to Buy may help when your savings and borrowing capacity fall short. Whether it suits you also depends on how long you plan to stay and how you expect to leave the scheme.

We can help you compare low-deposit options, including the 5% Deposit Scheme. For a Help to Buy application, confirm the available application channel with a participating lender.

Help to Buy FAQs

Compare your buying options

If you are weighing up Help to Buy against another low-deposit option, our team can help you compare the deposit, repayments and obligations. Your Help to Buy application goes through a participating lender.

Call 1300 088 065 or book a free assessment to work through your buying options.

Hunter Galloway - Our Dedicated Team — Our team of home loan experts is here to help you buy a home in Australia.

Sources and references

Checked 30 September 2026.