How shared equity works
A smaller mortgage in exchange for sharing part of the property's value
The Australian Government Help to Buy Scheme may help eligible buyers purchase an owner-occupied home with a minimum 2% deposit. The Government can contribute up to 30% of the purchase price for an existing home or up to 40% for a newly built home.
This contribution reduces the amount you need to borrow, but it is not a grant. The Government holds a proportional equity share that must eventually be repaid and will share in any increase or decrease in the property's value.
Official $800,000 existing-home example
Purchase costs and any required financial buffer are additional. Your participating lender must still approve the loan.
Key features
What Help to Buy may provide
The scheme is designed to bridge the gap between your deposit, your lender-approved borrowing capacity and the price of an eligible home.
Smaller deposit
Eligible applicants need a minimum deposit of 2%, although they may be required to contribute more where reasonably affordable.
Existing homes
The Government may contribute up to 30% of the purchase price of an eligible established home.
New homes
The Government may contribute up to 40% of the purchase price of an eligible newly built home.
No LMI
An eligible Help to Buy purchase does not require Lenders Mortgage Insurance, reducing an upfront borrowing cost.
Eligibility
Who may qualify for Help to Buy?
Applicants generally need to meet all scheme requirements and the participating lender's separate home-loan assessment.
- Be an Australian citizen aged at least 18.
- Have a minimum 2% deposit and contribute the maximum reasonable deposit you can afford.
- Apply alone or jointly with one other eligible person.
- Have taxable income of no more than $103,000 for an individual, or $165,000 for joint applicants and single parents, for FY2026.
- Live in the property as your principal place of residence.
- Not own or beneficially own other property in Australia or overseas, subject to limited single-parent exceptions.
- Purchase an eligible property within the location price cap.
Help to Buy is not limited to first-home buyers
You may be eligible if you are returning to home ownership and do not currently hold a disqualifying interest in property. Special provisions may also apply to eligible single parents.
Annual review point: Income and other thresholds are indexed. Always confirm the figures applying when your final application is assessed.
What we review before you apply
- Your latest ATO Notice of Assessment.
- Your deposit, assets and existing property interests.
- Your lender-assessed borrowing capacity.
- Your intended property type, postcode and price.
Property requirements
What can you buy?
The property must be in Australia, fall within the applicable price cap and be acceptable under both Help to Buy and the participating lender's policy.
New or existing homes
Eligible houses, townhouses, apartments, units and duplexes may qualify when purchased on an arm's-length basis.
Building options
Vacant land with an eligible fixed-price building contract, qualifying rebuilds and certain off-the-plan purchases may be considered.
Location price caps
Price caps differ across capital cities, regional centres and other areas. The price cap is not your personal borrowing limit.
Your 2% deposit is not the full amount you may need. Allow for stamp duty after concessions, conveyancing, inspections, registration costs, insurance, moving expenses and an appropriate financial buffer.
Understand the arrangement
A lower loan today means sharing future property value
Help to Buy can improve purchasing power and reduce mortgage repayments, but the long-term shared-equity obligations need to be understood before you commit.
Potential benefits
- Enter the market with a minimum 2% deposit.
- Borrow less from the participating lender.
- Potentially access a suitable home sooner.
- Avoid Lenders Mortgage Insurance.
- No interest or rent is charged on the Government's equity contribution.
Important trade-offs
- The contribution is shared equity—not a grant.
- The Government shares proportionally in gains or losses.
- Your repayment is based on the property's value at that time, not simply the original dollar contribution.
- Annual obligations and periodic eligibility reviews apply.
- Rules apply to renting, refinancing, secured borrowing and major renovations.
Your path to full ownership
How you can buy back the Government's share
You can generally make voluntary partial repayments or repay the Government's equity share in full. A partial repayment must usually be at least 5% of the property's current value, rounded to the nearest $1,000.
A current valuation is required because the amount is calculated using the Government's percentage share and the property's value when you repay—not its original purchase price.
- Buy back part of the Government's equity over time.
- Repay the remaining share in full when financially able.
- Repay the Government's share when the property is sold.
- Buy out the share when refinancing to a non-participating lender.
Ongoing responsibilities
- Keep the home as your principal place of residence.
- Maintain the property and full replacement building insurance.
- Continue making your lender repayments and paying ownership costs.
- Participate in required income and circumstances reviews.
- Notify Housing Australia about relevant changes, refinancing, sale or major renovations.
Independent legal and financial advice should be considered before entering a shared-equity arrangement.
Compare before deciding
Help to Buy or another low-deposit pathway?
The lowest upfront deposit is not automatically the most suitable long-term option. Compare the loan size, eligibility rules, ownership structure and future flexibility.
Help to Buy
Minimum 2% deposit and a smaller mortgage, but income caps, annual places and a Government equity share apply.
5% Deposit Scheme
No Government ownership share and generally no LMI, but you borrow and repay the full remaining purchase amount.
Standard or family-supported loan
May offer broader lender or property choices, but LMI, a larger deposit or guarantor risk may need to be considered.
Application process
How to apply for Help to Buy
Review your position
Assess income, savings, debts, expenses, property interests and an affordable repayment range.
Check scheme eligibility
Confirm citizenship, income, deposit, ownership and owner-occupier requirements.
Compare participating lenders
Review lender servicing, credit policy, rates, fees, features and eligible property rules.
Prepare your documents
Gather identification, your latest Notice of Assessment, income evidence, liabilities and savings history.
Obtain conditional approval
The lender assesses the home loan and reserves a Help to Buy place, subject to scheme requirements.
Property and final approval
Confirm the price cap, complete due diligence, obtain valuation and finalise the loan and participation documents.
Do not rely on conditional approval as a guarantee. Obtain legal advice before bidding at auction or signing an unconditional contract. The property, valuation and updated application must still be acceptable.
How Triple O Finance can help
Assess the scheme and the mortgage behind it
We can help you understand whether Help to Buy may apply, assess the loan you could reasonably manage and compare it with other available home-buying pathways.
Eligibility review
Review the main scheme, income, ownership and deposit requirements.
Borrowing assessment
Assess income, liabilities, expenses and participating-lender servicing.
Pathway comparison
Compare Help to Buy with the 5% Deposit Scheme and other loan structures.
Application support
Coordinate documents, lender communication, approval milestones and settlement preparation.
Information reviewed 26 September 2026. Scheme thresholds, places and lender policies can change. General information only; scheme eligibility and loan approval are assessed individually.
