Saving a traditional 20% home deposit—or even 5%—has become one of the biggest hurdles to owning a home in Australia. If you, your adult children, or someone in your family has been struggling to build up enough savings, I have some great news to share.
Through the Australian Government’s Help to Buy Scheme, eligible buyers can now step onto the property ladder with as little as a 2% deposit.
How Does It Work?
Think of the government as a silent partner in your purchase. Under this shared-equity arrangement:
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- Government Contribution: The government contributes up to 30% of the purchase price for an existing home, or up to 40% for a brand-new build.
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- Your Deposit: You only need to save a 2% deposit.
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- Your Mortgage: You take out a home loan for the remaining balance.
Because the government pays for a chunk of the property upfront, your mortgage is significantly smaller, and your monthly repayments are much lower.
Example: Rob’s purchase with Help to Buy
Rob bought a home for $800,000 through Help to Buy. His home purchase was structured as follows:
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- $16,000 deposit from Rob
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- $544,000 loan from his Participating Lender
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- to bridge the gap and enable the purchase, $240,000 contribution from the Government
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- total property value: $800,000.
From this arrangement:
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- Rob’s loan to value ratio (LVR) is 68% ($544,000 ÷ $800,000). He repays this loan over 30 years through monthly principal and interest repayments to his lender.
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- the Government holds a 30% equity share ($240,000 ÷ $800,000). The Government’s share must eventually be repaid, either through:
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- voluntary repayments
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- when Rob has the financial capacity to make a payment to buy back the Government’s equity or
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- when Rob sells the property.
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- the Government holds a 30% equity share ($240,000 ÷ $800,000). The Government’s share must eventually be repaid, either through:
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- the amount paid will always be based on the value of the property at the time of making the payment.
By understanding these obligations, Rob knows what he needs to repay regularly to his lender, and how his long-term path to full home ownership works under the Australian Government Help to Buy Scheme.
Who Is Eligible?
Home buyers need to meet eligibility criteria to qualify for Help to Buy. These include:
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- minimum age – must be at least 18 years old
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- deposit – minimum 2% of the home purchase price
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- citizenship – all applicants must be Australian citizens
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- single and joint applicants – you can apply to the Scheme either alone or together with one other person, provided you both meet the eligibility criteria
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- income – must have an annual taxable income at or below $103,000 for individual applicants or $165,000 for single parents and joint applicants, as shown on the ATO Notice of Assessment (NOA) for the previous financial year (FY 2026)
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- owner-occupier – you must live in the home as your principal place of residence whilst a part of the scheme (investment properties are not eligible and renting out the property is not allowed)
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- property ownership – cannot own or beneficially own any property in Australia or overseas. There are exceptions for single parents who own property jointly with someone else and want to buy out the other person’s share or intend to sell their existing ownership
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- other Australian Government assistance – cannot receive help from other schemes, including shared equity schemes, loans or guarantees provided by States or Territories to support the purchase. However, you can still benefit from stamp duty concessions, grants and other exemptions.
How We Help You Navigate It
The scheme requires applying through participating lenders. As your mortgage broker, our role is to act as the bridge between you, the lender, and the government framework.
We will:
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- Check your eligibility and local property price caps.
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- Calculate your expected monthly repayments and borrowing limit.
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- Guide you through the paperwork to reserve your place in the program.
Whether this is for you or a family member trying to buy their first home, feel free to reply directly to this email or call us to chat about how to get started! Click here to find out more.
