Help to Buy scheme
If you’re looking to buy a home in Victoria, the Help to Buy scheme could help you get there sooner. This Australian Government initiative supports eligible buyers with a shared equity contribution, reducing upfront costs and ongoing repayments. Explore how it works and whether you meet the eligibility criteria.
A quick guide to the Help to Buy scheme
The Australian Government Help to Buy scheme helps eligible Australians buy a home with a lower deposit through a shared equity contribution.
Deposit required
Eligible buyers may need around a 2% deposit. The government contributes to the purchase price, reducing the amount you borrow from a bank.
Who it’s for
The scheme supports eligible Australians, including first home buyers and single parents, who meet income limits and want to buy a home sooner.
Key benefit
The government contributes towards the purchase price, reducing your loan and repayments, with the option to buy back the equity share later.
Income limits
Income limits apply to individuals and joint applicants. Your taxable income must meet thresholds and be assessed by a participating lender.
Property price caps
Property price caps apply by state and territory. The home must fall within the maximum purchase price to qualify under the scheme.
What is the Help to Buy scheme?
The Help to Buy scheme is a shared equity scheme where the Australian Government contributes towards the purchase price of your home. This reduces the amount you need to borrow from a participating lender, making home ownership more accessible.
Managed by Housing Australia, the initiative is available each year to eligible buyers and applies to new homes and existing homes within set property price caps.
In return, the government holds an equity share. You can buy back this share over time or sell your home and share the value with the government.
How the Help to Buy scheme works
The Help to Buy scheme works by partnering you with the Australian Government to reduce upfront costs and support your path to home ownership.
Government contributes to your purchase
The government contributes a percentage of the purchase price, reducing how much you need to borrow from a participating lender.
You secure a smaller home loan
Because the government contributes, your loan through a bank is smaller, which can lower repayments and improve affordability.
You share ownership of the property
You own and live in the home, while the government holds an equity share based on its contribution to the purchase price.
You can buy back the equity share
Over time, you can buy back the government’s interest in the property, increasing your ownership as your financial position improves.
Equity is shared when you sell
If you sell your home, the government receives its share of the property value, based on its equity stake at the time of sale.
Who is eligible for the Help to Buy scheme?
Eligibility for the Help to Buy scheme is based on income, residency, and property criteria. Buyers must meet conditions set by the Australian Government and be approved by a participating lender.
Income and financial requirements
Applicants must meet taxable income limits set by the scheme. A participating lender will assess your financial position, including income, savings, and borrowing capacity, before progressing your application.
Property and purchase conditions
The property must meet price caps and be located in an eligible state or territory. Both new homes and existing homes can qualify, provided they meet all scheme rules.
Residency and citizenship rules
You must be an Australian citizen and intend to live in the home as your primary place of residence. The scheme is designed to support owner-occupiers, not investors.
Ownership and equity conditions
Buyers must agree to the shared equity structure. The government holds an interest in the property, and you may buy back this share or sell your home and share the value.
Benefits of the Help to Buy scheme
The Help to Buy scheme is designed to make home ownership more affordable. By reducing upfront costs and loan size, it helps eligible buyers enter the market sooner.
- Lower deposit required, helping you buy a home sooner
- Reduce how much you borrow from a participating lender
- Government contributes towards the purchase price
- Access affordable home ownership with shared equity
- Option to buy back the government’s equity over time
Limitations of the Help to Buy scheme?
While the Help to Buy scheme offers strong support, it includes conditions and restrictions. Buyers must meet strict criteria and accept shared equity terms.
- Limited places available each year through Housing Australia
- Income limits apply and must be maintained over time
- Government holds an equity share in your property
- Property price caps restrict where and what you can buy
- Rules apply when selling or buying back the equity share
Can the Help to Buy scheme be used to build a home?
Yes, the Help to Buy scheme can be used to build a new home, provided the project meets eligibility criteria and property price caps at the time of approval.
A participating lender will assess your financial position before you apply for the Australian Government initiative through Housing Australia. The land and building must fall within the scheme rules.
With the government contributing towards the purchase price, you can build a home in Australia while reducing how much you borrow and maintaining ownership of the property, while sharing some of the value over time.
How to apply for the Help to Buy scheme
Applying for the Help to Buy scheme involves working with a participating lender and Housing Australia. Each step ensures you meet eligibility and are ready to secure a home.
1. Check eligibility and speak to a lender
Review eligibility criteria and speak with a participating lender authorised to offer the scheme. They will assess your financial position and borrowing capacity.
2. Submit your application
If eligible, your lender will submit your application to Housing Australia. Places are limited each year, so meeting all conditions is essential.
3. Secure your home and proceed
Once approved, you can purchase or build a home that meets scheme rules. The government contribution is applied at settlement.
What documents are required?
Proof of identity
e.g., driver's licence or passport
Evidence of income
e.g., payslips, tax returns
Information about the property
you intend to purchase or build
Help to Buy scheme calculator
Use the Help to Buy calculator to estimate your deposit, loan amount, and potential government contribution. It’s a simple way to understand how the shared equity scheme could support your budget and help you plan your next steps with confidence.
Can Carlisle Homes help with the Help to Buy scheme process?
Carlisle Homes can guide you through the Help to Buy scheme, from understanding eligibility to choosing a home that meets requirements. We work with you and your lender to help you move forward with confidence.
Explore building with Carlisle Homes
Explore how Carlisle Homes can support your journey to home ownership. From home designs to house and land packages, discover options that suit your lifestyle and budget.
How to get started with Carlisle Homes
Getting started with Carlisle Homes is simple, with support at every stage. Begin by exploring home designs and understanding your budget, including how the Help to Buy scheme may assist your purchase.
Our team can guide you through Help to Buy eligibility and connect you with a participating lender to assess your financial position. We’ll help ensure your chosen home meets scheme requirements, so you can move forward with confidence towards home ownership.
Explore other government home buyer schemes
There are several Australian Government initiatives designed to support different home buyer needs. Explore other schemes to find the right fit for your situation.
Frequently asked questions
How much can I borrow with the Help to Buy scheme?
How much you can borrow depends on your income, expenses, and the property price. Because the government contributes towards the purchase price, your loan through a participating lender is typically lower than a standard home loan.
Which banks offer the Help to Buy scheme?
The scheme is available through selected participating lenders authorised to offer it. Not all banks in Australia will take part, so you’ll need to apply through an approved lender working with Housing Australia.
Can I buy an existing home or only new homes?
You can use the Help to Buy scheme to purchase both new homes and existing homes. The property must meet eligibility criteria and fall within property price caps set for your state or territory.
What happens if I want to sell my home?
If you sell your home, the government receives its share based on its equity interest in the property at the time of sale. This reflects the shared equity arrangement of the scheme.
Can I buy back the government’s share?
Yes, you can buy back the government’s equity share over time. This allows you to increase your ownership of the property as your financial position improves.
What are the pros and cons of the scheme?
The scheme can reduce your deposit and loan, making home ownership more accessible. However, the government holds an interest in the property, and conditions apply when selling or buying back equity.
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Explore more information about government schemes and home buying support in Australia. These articles can help you understand your options and plan your next steps with confidence.
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