If you’ve ever looked at house prices and thought, “I’ll never save a 20% deposit,” you’re not alone. For many Australians, especially women and lower-income earners, saving a deposit is the biggest obstacle standing between them and home ownership. 

That’s exactly who Help to Buy was designed for. The government’s shared equity scheme allows eligible buyers to purchase a home with a deposit as low as 2%, helping some people get into the market years sooner than they otherwise could. 

But while the scheme can be a game changer, the eligibility rules are stricter than many people realise. Income limits, property ownership requirements and location-based price caps can all affect whether you qualify. 

Before you start inspecting properties or mentally arranging furniture in your dream home, it’s worth understanding exactly how Help to Buy works, who it’s designed for, and the rules that could determine whether you’re eligible. 

What Help to Buy actually is 

At its core, Help to Buy is a shared equity scheme in Australia designed to make home ownership possible sooner. 

Instead of saving a 20% deposit on your own, you can buy with a deposit as low as 2%, while the Australian Government contributes up to 40% of the purchase price for a new home, or up to 30% for an existing home. 

That doesn’t mean the government becomes your landlord. You still own and live in the property, and your name goes on the title. The government simply takes an ownership stake that reflects the amount they’ve contributed. 

Over time, you can buy back the government’s share if your circumstances allow, or repay it when you refinance or sell the property. 

There are 10,000 spots on offer each year, and since June 2026, every state and territory has come on board, giving buyers across the country another pathway into the market.  

Am I eligible for Help to Buy? 

One of the most common questions we hear is: Am I eligible for Help to Buy? 

The answer depends on several factors, and you’ll need to meet all of the eligibility criteria. 

You may be eligible if: 

• You’re at least 18 years old. 

• You’re an Australian citizen. 

• You can contribute a minimum 2% deposit. 

• Your income falls within the current income limits for 2026, up to $103,000 for singles or $165,000 for couples or single parents. 

• You’ll live in the property as your principal place of residence. 

• You don’t currently own another property in Australia or overseas, unless an approved exception applies. 

These limits are indexed over time, so it’s worth checking the latest numbers before making plans based on information you’ve seen elsewhere. 

One rule to know: you can’t combine Help to Buy with another government shared equity scheme, loan or guarantee. However, you can still combine it with stamp duty concessions and other grants you’re eligible for. 

Check your eligibility: Use Housing Australia’s Help to Buy Eligibility Tool to see if you may be eligible in a few minutes. It’s a good first step before you speak to anyone. 

The two Help to Buy rules that catch people out 

Before you start house hunting, it’s worth double-checking two eligibility rules that regularly surprise buyers. 

1. The income limits – the income limits change each year. So a figure you saw in an article last year might no longer be accurate today. If your income is close to the threshold, it’s worth checking the latest limits before assuming you’re eligible, or ruling yourself out altogether. 

2. The property ownership rule – in general, you can’t own residential property when you apply for Help to Buy. That includes property in Australia or overseas. However, there are some limited exceptions, including certain arrangements available to eligible single parents. It’s worth checking the details with a participating lender before assuming you’re eligible, or ruling yourself out entirely. 

What does Help to Buy look like in practice? 

Let’s say you’re purchasing a home worth $800,000. 

With the 2% deposit scheme Australia now offers through Help to Buy, you’d need a deposit of $16,000. 

If the government contributes 30% toward the purchase price of an existing home, that amounts to $240,000. That leaves you needing a home loan of around $544,000. 

One of the major benefits is that your loan-to-value ratio is significantly lower, which can help you avoid Lenders Mortgage Insurance (LMI), potentially saving thousands of dollars upfront. 

The trade-off is that the government’s contribution isn’t a traditional loan. It’s an ownership stake. 

If the property’s value increases over time, the value of the government’s share increases too. When you repay that share in the future, you’ll repay a percentage of the home’s value at that time, rather than the original dollar amount contributed. 

That’s an important distinction to understand before committing to any government home buyer scheme involving shared equity: “Is giving up some future growth worth buying a home years earlier?” 

Property price caps: check before you fall in love with a place 

Even if you meet all the income and eligibility requirements, the property itself also needs to qualify. 

Under Help to Buy, every location has a maximum property price cap. These caps vary by state, territory and region. 

That means a home that qualifies in one area may be above the cap just a short distance away. 

Use Housing Australia’s Help to Buy Property Price Caps Search Tool to check the cap for your specific location before you start inspecting. Doing this early saves you from getting attached to a place, only to find out it’s technically out of reach under the scheme. 

Not every lender offers it, so choose carefully 

Another common misconception is that you can walk into any bank and apply. 

That’s not how the scheme works. 

Housing Australia works with a panel of participating lenders, and applications need to be submitted through one of those approved providers. 

The list of participating lenders continues to evolve, so it’s worth checking the current panel if you’ve looked previously. You can check the  Participating Lenders list here. 

Once you’ve found a participating lender, they’ll assess your eligibility, help prepare your application and manage the approval process with Housing Australia. 

After receiving conditional approval, you’ll typically have up to 90 days to find an eligible property and sign a contract of sale, with extension options available in some circumstances. 

Help to Buy vs First Home Guarantee 

Help to Buy isn’t the only scheme out there. When comparing Help to Buy to schemes like the First Home Guarantee, neither option is automatically better than the other. The two schemes aim to solve different problems for first time buyers. 

The First Home Guarantee lets you buy with a 5% deposit without paying LMI and the government doesn’t take an ownership stake in the property. 

With Help to Buy, on the other hand, the government contributes a portion of the purchase price, reducing the size of your loan. The trade-off is that you will need to share future profits with the government. 

For buyers struggling to save a larger deposit or qualify for sufficient borrowing, Help to Buy can be a powerful option. 

For buyers who can comfortably manage a larger deposit and want to keep 100% ownership from day one, the First Home Guarantee may be more attractive. 

The right choice ultimately depends on your income, borrowing capacity, savings, long-term plans and how comfortable you are with shared ownership. 

Who to talk to before you apply  

To understand where you stand with Help to Buy, it’s important to talk to the right people:  

• A mortgage broker can help you compare Help to Buy, the First Home Guarantee and any other state-based grants or concessions you’re eligible for. 

• A financial adviser can help you understand the long-term impact of sharing equity. 

• A conveyancer or solicitor can explain the legal structure of the government’s ownership interest and the second mortgage that’s registered under the scheme. 

The earlier you get advice, the easier it becomes to understand your options and move forward with confidence. 

If you’re considering applying, the best place to start is by confirming your eligibility and speaking with a trusted professional who can help you work through the numbers. Find a trusted professional in the Penny app. 

Sources 

1. Housing Australia. More Australians set to benefit as Help to Buy expands from 1 July 2026 

2. Australian Government First Home Buyers. Australian Government Help to Buy Scheme 

3. Australian Government First Home Buyers. Help to Buy Property Price Caps Search Tool 

4. Australian Government First Home Buyers. Help to Buy Participating Lenders 

5. Australian Government Treasury. Supporting people into home ownership 

This article is general information only and does not constitute financial or legal advice. Eligibility criteria, income thresholds and property price caps are reviewed and can change. Always check the current details at firsthomebuyers.gov.au and speak with a participating lender or licensed mortgage broker before making any decisions.