Help to Buy Scheme 2026: Complete Guide for First Home Buyers

Introduction

For Australian first home buyers, the 2026-27 Budget delivered the most substantial direct support package in years — an expanded Help to Buy shared equity scheme. The Government co-purchases part of the home with the buyer, dramatically reducing the mortgage and deposit needed. In return, the Government holds an equity stake that is bought back (or repaid) over time.

Help to Buy is one of three significant federal first home buyer schemes (alongside the First Home Guarantee and the First Home Super Saver). For eligible buyers, it offers the largest upfront benefit but with the most complex ongoing relationship with the Government. This article walks through how it works, who qualifies, and how to compare it to alternatives.

How Help to Buy Works

The mechanics are straightforward:

1. The buyer identifies an eligible property within the relevant price cap.
2. The Government co-purchases part of the property:
   • Up to 40% for new builds
   • Up to 30% for established properties
3. The buyer takes a mortgage on the remaining share (minimum 2% deposit required from the buyer).
4. The buyer owns and occupies the property as their main residence.
5. The Government retains its equity share until the buyer either buys it out, sells the property, or refinances.

Worked example

Lucas buys a new build apartment in Brisbane for $680,000. Help to Buy contributes 40% ($272,000). Lucas's required deposit is 2% of his share ($8,160), and his mortgage is $399,840 (about $1,000/month interest at 5% — vs $3,000/month if buying outright). On future sale, 40% of any gain accrues to the Government.

Eligibility Criteria

• Australian citizen aged 18+
• Not currently own (or have previously owned) residential property in Australia
• Will occupy the property as main residence
• Income at or below the cap (see below)
• Property within the relevant state price cap
• Property must be a residential dwelling (apartment, townhouse, house)

Joint applicants (couples or co-purchasers) must collectively meet the eligibility criteria — both must be first home buyers, both must meet income caps as a combined household.

Income Caps and Property Price Caps

Income caps

• Singles: $90,000 taxable income
• Couples: $120,000 combined taxable income

Property price caps (illustrative)

Caps are indicative based on scheme announcements. Confirm current values on the official Help to Buy website before applying.

Places Available

The scheme provides 5,000 places per year initially. These are allocated on a first-come, first-served basis once applications open each financial year. Competition is expected to be strong — successful applicants typically need to apply early in the allocation window and have finance pre-approval in place.

How to Apply

1. Confirm you meet eligibility criteria (income, first home buyer status, citizenship).
2. Obtain a pre-approval from a participating lender (most major banks participate).
3. Identify a property within the relevant cap.
4. Submit a Help to Buy application via the scheme administrator (Housing Australia).
5. If approved, proceed to contract subject to settlement of the Government equity arrangement.
6. At settlement, the Government's share is transferred and you become co-owner with the Government.

The process can add 4-6 weeks to a normal property purchase timeline. Plan accordingly when bidding at auction or making offers.

Exit and Equity Buyback

The Government's share is repaid when:

• You sell the property — Government receives its proportional share of sale proceeds.
• You buy back the Government share — at then-current market value.
• You refinance to remove the shared equity arrangement.
• You no longer meet eligibility (e.g. income rises significantly above cap).

Buyback is generally permitted at any time. The buyback amount is calculated as the Government's percentage share of the current market value — meaning if the property has appreciated, the buyback cost is higher than the original Government contribution. Conversely, if the property has depreciated, the buyback cost is lower.

Risks and Trade-offs

Other considerations:

• If your income later exceeds the cap, you may be required to refinance out of the scheme.
• Some lenders charge slightly higher rates on Help to Buy mortgages (reflecting the shared equity structure).
• Renovations or improvements may affect the equity calculation — confirm rules before major works.
• The scheme administrator must consent to changes (e.g. renovations, leasing, refinance).

Compared to Other Schemes

First Home Guarantee (FHBG)

FHBG provides a Government guarantee for up to 15% of the property price, allowing buyers to purchase with as little as 5% deposit without paying Lenders Mortgage Insurance. The buyer takes the full mortgage. Government does not own equity. Compared to Help to Buy, FHBG provides less upfront support but no shared equity obligation.

First Home Super Saver (FHSS)

FHSS allows first home buyers to make voluntary super contributions that can be withdrawn for a home deposit, with concessional tax treatment. Useful complement to FHBG or Help to Buy. Maximum withdrawal currently $50,000.

Choosing between schemes

Help to Buy is the largest direct support but involves shared equity. FHBG enables smaller deposits without shared equity. FHSS provides a tax-effective savings vehicle. Many buyers use FHSS to save the deposit and FHBG or Help to Buy at purchase. Combining FHSS + Help to Buy can produce powerful outcomes for eligible buyers.