Find out what the passed bill means for you.
Help to Buy will commence on 5 December 2025, providing shared-equity support to help eligible Australians buy a home.
The Government may contribute up to 40% of the price for new homes or 30% for existing homes, with a minimum 2% deposit required.
Up to 40,000 households will be supported over four years, with income caps of $100k for individuals and $160k for joint applicants and single parents.
The Scheme includes state and territory price caps and is administered by Housing Australia.
At launch, it will be operational in QLD, VIC, NSW, SA, ACT and NT, with participation from Bank Australia and CBA.
ABC News reports that Tasmania won’t participate in Help to Buy after the state chose not to introduce the required legislation. The Federal Government also confirms Western Australia isn’t participating yet, as it has not passed the enabling legislation.
For many Australians, stepping into the property market feels as daunting as climbing Everest—challenging, expensive, and full of obstacles.
The Federal Government’s Help to Buy Scheme, is a game-changer for 40,000 low to middle-income Australians. This shared equity program lets eligible first-home buyers purchase with just a 2% deposit, with the government contributing up to 40% for new homes and 30% for existing properties.
By lowering upfront costs and mortgage repayments, it removes key barriers to homeownership. Paired with Build-to-Rent incentives, this initiative aims to fast-track your path to owning a home.
3 reasons why his scheme could get you on the property ladder sooner
1. Significantly reduced deposit requirement:
The Help to Buy Scheme dramatically lowers the entry barrier to homeownership by requiring only a 2% deposit.
Less savings stress: You can enter the market with a smaller deposit. For a $500,000 property, you only need $10,000, not the usual $100,000.
Faster entry: Reduced upfront costs mean you can enter the market years earlier.
Emily Lonsdale - Growth GM, Aussie Home Loans: "This scheme is critical for many Australians who have struggled to save for a deposit. It puts buying a home back on the radar for many who thought the upfront investment was out of reach."
2. Increased purchasing power
The government’s contribution (up to 40% for new homes, 30% for existing) stretches your budget, making it easier to secure a better property.
More options: A $400,000 budget could extend to properties worth up to $666,000.
Better opportunities: Access homes in desirable areas or with features that fit your needs.
Scott Bolton, Aussie Broker, Canberra emphasised the impact, "Having the government as a co-investor helps buyers get into properties they once thought were out of reach.”
3. Lower ongoing costs
Borrowing less from the bank means lower mortgage repayments, easing the long-term financial burden.
Smaller monthly payments: Reduced loan amounts lead to less strain on your budget.
No interest on the government’s share: Keeps more income available for other expenses or savings.
Lachlan Howell, Aussie Broker, Neutral Bay adds, "This scheme is a game-changer for many Australians. Not only does it provide the opportunity to lower your ongoing monthly mortgage repayments, but it also offers the chance to hold a share in a larger asset, providing both short-term and long-term benefits. It's a stepping stone for many to overcome the challenges of entering the property market by significantly minimising their deposit. Aussies can now achieve their homeownership goals today rather than years down the track."
Eligibility criteria
To qualify for the Help to Buy Scheme, applicants must meet the following conditions:
Be Australian citizens aged 18 or over
Have an annual income of $100,000* or less for individuals or $160,000* or less for couples or single parents
Not currently owning property in Australia or overseas
Intend to live on the purchased property
Be able to finance the remainder of the purchase through a standard home loan
Have saved the minimum 2% deposit and be able to cover associated costs such as stamp duty and legal fees
Note: *From 5 December 2025, the Australian Government Help to Buy Scheme will be open for applications. For more information, please visit this page.
Recent coverage from ABC News confirms that the Tasmanian Government has chosen not to introduce the legislation needed for Help to Buy to operate in the state. This means Tasmania won’t take part in the Scheme at this time.
The Australian Government also notes on its First Home Buyers website that Western Australia isn’t participating yet, as the required legislation has not been passed.
While Help to Buy isn’t available in Western Australia yet, the State Government has introduced a similar initiative to support local buyers. Western Australia recently launched the Urban Connect Shared Equity scheme, designed to help more Western Australians access home ownership.
Property price caps
The scheme includes property price caps that vary by location. These will be based on the median house price in that region rather than the median dwelling price.
Here's a table summarising these price caps:
Region | Old price cap | New price cap* |
|---|---|---|
NSW (Capital city/regional centre) | $950,000 | $1,300,000 |
NSW (Other) | $750,000 | $800,000 |
VIC (Capital city/regional centre) | $850,000 | $950,000 |
VIC (Other) | $650,000 | $650,000 |
QLD (Capital city/regional centre) | $700,000 | $1,000,000 |
QLD (Other) | $550,000 | $700,000 |
WA (Capital city) | $600,000 | $850,000 |
WA (Other) | $450,000 | $600,000 |
SA (Capital city) | $600,000 | $900,000 |
SA (Other) | $450,000 | $500,000 |
TAS (Capital city) | $600,000 | $700,000 |
TAS (Other) | $450,000 | $550,000 |
$750,000 | $1,000,000 | |
$600,000 | $600,000 | |
$550,000 | $550,000 | |
$400,000 | $400,000 |
Source: Housing Australia
Note: *From 5 December 2025, the Australian Government Help to Buy Scheme will be open for applications. For more information, please visit this page.
The Help to Buy Scheme summarised
The Help to Buy Scheme is a shared equity program that enables eligible buyers to enter the property market with a smaller deposit and reduced mortgage. Here's how it works:
Government Contribution: The federal government will contribute up to 40% of the purchase price for new homes and 30% for existing properties
Deposit Requirement: Buyers need only a 2% deposit to participate in the scheme
Ownership Structure: The government becomes a co-owner of the property, holding an equity stake proportional to its contribution
No Rent or Interest: Participants don't pay rent or interest on the government's share of the property.
Buying Back Equity: After two years, homeowners can start buying back the government's share in 5% increments.
Equity at Sale: If the property is sold, the government recovers its equity contribution plus a proportional share of any capital gains.
How do I apply for the Help to Buy scheme?
The Help to Buy scheme is yet to be officially legislated, but you can start getting ready to apply as soon as it launches:
Check your eligibility: Ensure you meet the Help to Buy criteria above.
Find the right lender: Talk to a Local Aussie broker to assess your financial situation and explore the options available for your circumstances.
Find the perfect home: Search for a property, keeping in mind the above price caps for each state and territory.
Submit paperwork: Work with your Aussie broker to submit relevant paperwork for your application.
If you’re still unsure about your eligibility for the Help to Buy scheme in your state or territory, you can contact your local Aussie Broker to get free help.
