Complete guide to Australia's Help to Buy shared equity scheme. Up to 40% government contribution, 2% deposit, price caps, eligibility and how to apply. Brokio, Williams Landing.
The Help to Buy scheme is an Australian Government shared equity program that launched in December 2025. It's designed to make homeownership accessible to people who can't save a large deposit — and it does this in a genuinely meaningful way.
The government becomes a co-owner of your property by contributing a percentage of the purchase price:
You only need a 2% deposit. The government puts in their share. Your home loan covers the rest. No Lenders Mortgage Insurance (LMI) is required.
Let's say you're buying an existing home in Melbourne for $750,000:
Without Help to Buy, you'd need a loan of $735,000 (or save a much larger deposit). With the scheme, your loan drops to $510,000 — that's $225,000 less debt, which means significantly lower monthly repayments and less interest over the life of the loan.
The government holds an equity share proportional to their contribution. They don't charge rent on their share, and they don't charge interest. But when you sell the property (or choose to buy them out), they receive their percentage of the property's value at that time.
If the property goes up in value, the government's share goes up too. If it drops, their share drops. It's a genuine co-ownership arrangement — the government shares both the upside and the risk.
There are 10,000 places per year (40,000 over four years). As of early 2026, more than 2,300 places have already been approved — roughly a quarter of the annual allocation. At the current rate of uptake, spots could run out before the end of the financial year.
The Help to Buy scheme has specific eligibility requirements. Here's who qualifies — and a few things that might surprise you.
The scheme is particularly powerful for:
The income threshold is based on your most recent Notice of Assessment from the ATO. This is your taxable income after deductions — not your gross salary. If you salary sacrifice into super, use negative gearing losses from a previous property, or have other legitimate deductions, your taxable income may be below the threshold even if your gross salary is higher. This is worth discussing with your broker and accountant.
The Help to Buy scheme sets maximum property price caps depending on where you're buying. These caps are designed to reflect local market conditions, but they vary significantly across states.
The $950,000 cap for Melbourne is highly relevant for buyers in the western suburbs. Let's look at current median prices in key areas (April 2026 estimates):
The good news: almost every property in Melbourne's west falls comfortably within the $950,000 cap. This makes the western suburbs one of the best areas in Melbourne to use the Help to Buy scheme — you get genuine houses (not just apartments) at prices well within the threshold.
There's a 10 percentage point incentive to buy new. For a $700,000 property:
That extra $70,000 in government support means lower repayments and less interest over the life of the loan. If you're open to new builds or house-and-land packages in growth areas like Tarneit, Truganina, or Wyndham Vale, the 40% contribution can be a game-changer.
If you're a first home buyer, you might be weighing up Help to Buy against the First Home Guarantee (FHG). Both reduce the deposit barrier, but they work very differently — and which one is "better" depends entirely on your situation.
That's a difference of $1,133 per month in repayments — or $13,596 per year. Over 30 years, the Help to Buy borrower pays approximately $190,000 less in interest.
The lower repayments come at a real cost: the government owns 30% of your home's future value. If your $700,000 property grows to $900,000 in 10 years:
In a rising market, the FHG buyer builds wealth faster because they own 100% of the growth. In a flat or falling market, Help to Buy is less risky because the government shares the downside.
Choose Help to Buy if: You're on a lower income, can't save a 5% deposit, and need lower monthly repayments to make homeownership work. The reduced loan stress now outweighs the shared equity later.
Choose First Home Guarantee if: You can manage a 5% deposit and afford higher repayments, and you want to own 100% of your property from day one. Your long-term wealth will be greater.
Both schemes can be combined with Victoria's First Home Owner Grant ($10,000 for new homes under $750,000) and stamp duty concessions, making them even more powerful.
Help to Buy sounds great on paper — and it genuinely is a good scheme. But there are important details that aren't always highlighted in the headlines.
As of early 2026, only Commonwealth Bank (CBA) and Bank Australia are participating lenders. More banks are expected to join throughout 2026, but right now, your choice is limited.
CBA has restricted applications to its branch network only — meaning you can't apply online or through a broker's CBA channel. This limits your ability to compare products and negotiate. Bank Australia offers a more straightforward application process.
What this means for you: With limited lender competition, you might not get the most competitive interest rate. A standard home loan through a broker with access to 30+ lenders could potentially offer a better overall deal — especially if your deposit is closer to 10-20%.
The government's equity contribution must eventually be repaid. This happens when you:
The repayment is based on the current market value at the time, not the original purchase price. If your property has appreciated, you pay back more than the government originally contributed.
With 2,300+ places already taken from the 10,000 annual allocation (as of early 2026), demand is outpacing supply. The scheme operates on a first-come, first-served basis. If you're eligible and interested, delaying could mean waiting until the next financial year.
Help to Buy does not exempt you from stamp duty. You still pay stamp duty on the full purchase price. However, you may qualify for Victoria's stamp duty concessions separately:
These concessions can stack with Help to Buy, potentially saving you tens of thousands in upfront costs.
This is the most important distinction. The First Home Owner Grant gives you $10,000 with no strings attached. Help to Buy is fundamentally different — the government becomes your co-owner. That's a long-term financial relationship, not a one-off benefit. Make sure you understand and are comfortable with this before applying.
Navigating the Help to Buy scheme can be confusing — eligibility rules, price caps, participating lenders, and the interaction with other grants and concessions. That's where having a mortgage broker in your corner makes a real difference.
Here's our honest advice: if you earn under the income threshold and you're struggling to save a large deposit, Help to Buy is one of the most generous homeownership schemes in Australian history. The 2% deposit requirement and LMI exemption alone can save you $20,000-$40,000 in upfront costs.
But go in with your eyes open. You're sharing ownership with the government, and in a rising market, that shared equity comes at an opportunity cost. For some people, saving a bit longer for a larger deposit and going through a standard loan will build more wealth in the long run.
The right answer depends on your numbers, your goals, and your timeline. That's a conversation we have with every client.
Interested in the Help to Buy scheme? Book a free consultation with Brokio — we'll run the numbers for your specific situation and tell you honestly whether this scheme is your best path to homeownership. Visit us at 601/87 Overton Road, Williams Landing VIC 3027, or call for a phone consultation. We help buyers across Williams Landing, Point Cook, Tarneit, Truganina, Werribee, and all of Melbourne's west.
Ready to explore tailored loan options? Contact Brokio today and let us guide you through your mortgage, car loan, personal loan, or investment property loan journey with confidence.
