How the Help to Buy scheme works
Help to Buy is the Australian Government's shared equity scheme: you buy with a 2% deposit, the government contributes up to 30% of the price of an existing home or 40% of a new one, and you borrow the rest from a participating lender with no lenders mortgage insurance. You own the home and the government owns a share of its value until you buy it back. This guide covers the income thresholds and price caps, a worked example, the buy-back, the downsides, and what the participating lenders publish.
- Government equity share of up to 30% for an existing home and up to 40% for a new build; your deposit plus the share must reach 20% so no LMI applies (CommBank)
- Minimum 2% deposit; income thresholds of $103,000 for individuals and $165,000 for joint applicants or single parents, wage-indexed annually (Bank Australia, government site)
- Available in all states and territories, at or below location price caps; open to first home buyers and those re-entering the market
- The government shares gains and losses in proportion; you buy the share back over time at the value at the time, and may be required to if you no longer meet the criteria
- Apply only through a participating lender; CommBank publishes it is currently the only major bank on the panel, alongside Bank Australia, TMB and other mutuals
WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees, or other loan amounts might result in a different comparison rate. Comparison rates are based on a secured loan of $30,000 over 5 years for vehicle finance and $50,000 over 5 years for equipment finance, as required under the National Credit Code.
What is Help to Buy?
The government's first home buyer site defines it as a shared equity scheme where the Australian Government contributes towards the purchase price of your home, available in all states and territories, for a newly built or existing home at or below the property price cap for the location. Bank Australia publishes the consequence: you own the home but share some of the value with the government, and because the government has contributed to the purchase, it proportionally shares any gains or losses. It is designed, in the government's words, to bridge the gap when you have saved what you can but are still a little short, and it is not meant to be a lifelong commitment.
Worked example: the government's $800,000 purchase
| Item | Amount | Share of price |
|---|---|---|
| Purchase price | $800,000 | 100% |
| Buyer's deposit | $16,000 | 2% |
| Government equity share (existing home) | $240,000 | 30% |
| Home loan from the participating lender | $544,000 | 68% LVR |
| Monthly repayment at 6% p.a. over 30 years | About $3,262 | — |
| Same home with a 95% loan under the 5% Deposit Scheme | $760,000 loan, about $4,557 a month | 95% LVR |
The government publishes the first four lines as its example of Rob's purchase, with a 68% LVR and monthly principal and interest repayments over 30 years; the repayment figures are our arithmetic at an illustrative rate. The loan is $216,000 smaller than under the 5% Deposit Scheme, which is about $1,300 a month less to service. The price of that is 30% of every dollar of growth: if the home is worth $1,000,000 when Rob buys the share back, the share costs $300,000, not $240,000.
Who is eligible?
| Requirement | As published | Source |
|---|---|---|
| Income | Taxable income up to $103,000 for individuals, $165,000 for joint applicants (maximum two) or single parents; wage-indexed annually | Bank Australia; government site |
| Deposit | Minimum 2% of the purchase price | CommBank, Bank Australia, TMB |
| Government share | 5% to 30% for existing homes, up to 40% for new builds or construction; deposit plus share at least 20% | CommBank |
| Property | New or existing home at or below the location price cap, to live in | Government site |
| Prior ownership | Must not currently own an interest in property; exceptions for single parents; open to buyers re-entering the market | Bank Australia, CommBank |
| Ongoing | Income caps and participation requirements apply on an ongoing basis; a review and possible buy-back if no longer met | CommBank |
| Application | Only through a participating lender, which assesses eligibility and submits to Housing Australia | Government site |
What do participating lenders publish?
Checked against each lender's published page on 20 September 2026; "Not published" means the page does not state it. The panel and terms change without notice, so confirm before relying on them.
| Lender | Deposit and share as published | Income threshold as published | Other published terms |
|---|---|---|---|
| CommBank | As little as 2%; government contributes 5% to 30% for existing homes, up to 40% for new builds; deposit plus share at least 20% | Income caps apply on an ongoing basis | Currently the only major lender participating; options for first home buyers and those re-entering the market; review and possible buy-back if you no longer meet the criteria |
| Bank Australia | Minimum 2%; up to 30% existing or 40% newly built | Up to $103,000 individuals, $165,000 joint or single parents | Must not currently own, exceptions for single parents; government shares gains and losses proportionally; can remove the need for LMI; online eligibility check |
| TMB (Teachers Mutual Bank) | At least 2%; government may contribute up to 30% existing or 40% new | Not published on the page | For first home buyers and those returning to home ownership; borrow the remainder from the bank |
| Other participating lenders | Housing Australia publishes the full panel; the government's site says a participating lender will assess eligibility and submit the application | ||
The downsides, and how the buy-back works
The government's share is not a loan and has no repayments, which is what makes the monthly cost low; it is a share of the asset, which is what makes the exit expensive. When you buy the share back, in stages or in full, you pay its proportion of the property's value at that time, so the government captures its share of any growth (and wears its share of any fall). CommBank publishes that if you no longer meet the eligibility requirements, for example by exceeding the income cap, it will review your circumstances and you may be required to buy back the Commonwealth share in full or in part. The usual route is a refinance to a larger loan once your income and equity have grown; the home equity loan guide covers how that borrowing works. Plan for it from day one, because the scheme is designed to be left.
Help to Buy or the 5% Deposit Scheme?
Both start at a 2% deposit for single parents and neither charges LMI. Help to Buy cuts the loan by the government's share, which is what gets a modest income over the serviceability line; the 5% Deposit Scheme has no income cap and no buy-back but needs the income to carry a 95% loan. Run the borrowing power calculator on both loan sizes. A broker accredited with the participating lenders can lodge either, and Your Finance Guide refers you to one licensed broker partner for that comparison; we do not lend or assess applications ourselves.
Buying with government help
The schemes, the calculators and the exit.
Help to Buy FAQs
What are the downsides of the Help to Buy scheme?
How much deposit do I need for Help to Buy?
What are the income limits?
How much will the government contribute?
How do I buy back the government’s share?
Is Help to Buy available in every state?
Help to Buy or the 5% Deposit Scheme?
Can I use Help to Buy if I have owned before?
A smaller loan, a shared home
Tell us your income, what you have saved and where you want to buy, and we refer you to one licensed broker partner who checks Help to Buy against the 5% Deposit Scheme and lodges the one that fits. Free for borrowers, no obligation.