Quick answer: Help to Buy lets eligible buyers purchase with a 2% deposit while the Government contributes up to 30% of an existing home or up to 40% of a new home, with no lenders mortgage insurance. For 2026–27 you must earn $103,000 or less as a single, or $165,000 combined as a couple or single parent, be an Australian citizen, not own property now, and buy under the price cap: $1.3 million in Sydney. The Government shares in your home’s value, so you repay its share (at the home’s value at the time) when you sell or can afford to buy it back.
Help to Buy has been open since December 2025, but October 2026 brought the change many buyers were waiting for: more lenders and more broker access. Queensland Country Bank started taking applications through brokers on 6 October, and the Teachers Mutual Bank group began onboarding its first trained brokers the same day, joining Bank Australia. Here is how the scheme works, who qualifies, and how it compares with the 5% Deposit Scheme.
How Help to Buy works
Help to Buy is a shared equity scheme run by Housing Australia. You buy the home in your own name, take out a smaller home loan with a participating lender, and the Government pays part of the price in exchange for the same percentage share of the home’s value.
- Your deposit: at least 2% of the price, from your savings. You put in the most you can reasonably afford, as worked out by the lender’s financial capacity test.
- The Government’s share: between 5% and 30% for an existing home, or between 5% and 40% for a new home or a home you build. It contributes only as much as you need, and enough that you don’t pay LMI.
- No interest or rent on the Government’s share, and no monthly repayments to the Government. You repay your lender as usual.
- You still pay stamp duty (or claim your state’s first home concession), legal and conveyancing fees, inspections and other purchase costs.
Who is eligible in 2026
| Requirement | Rule |
|---|---|
| Citizenship and age | Australian citizen, 18 or over |
| Income (single) | $103,000 taxable income or less |
| Income (joint or single parent) | $165,000 combined taxable income or less |
| Property ownership | You can’t own any property in Australia or overseas when you apply (limited exceptions for single parents). Previous owners can apply. |
| Deposit | At least 2% of the price, plus your own purchase costs |
| Living in it | Must be your home (principal place of residence). Renting it out needs Housing Australia’s approval. |
| Lender | A participating lender, which also tests what you can afford |
Source: Housing Australia, Help to Buy Customer Guide (version 1 July 2026). Income limits are indexed every 1 July and are tested on your most recent Notice of Assessment.
Help to Buy price caps
| State or territory | Capital city and regional centres | Rest of state |
|---|---|---|
| NSW | $1,300,000 | $800,000 |
| VIC | $950,000 | $650,000 |
| QLD | $1,000,000 | $700,000 |
| WA | $850,000 | $600,000 |
| SA | $900,000 | $500,000 |
| TAS | $700,000 | $550,000 |
| ACT | $1,000,000 | n/a |
| NT | $600,000 | $600,000 |
Source: firsthomebuyers.gov.au. Use the official postcode tool to check the cap for a specific suburb. For house and land, the cap applies to land plus build.
What it looks like on an $850,000 Sydney home
Here is an eligible first home buyer purchasing an existing $850,000 home in Sydney, compared with the 5% Deposit Scheme. Both pay the same NSW first home buyer stamp duty of about $9,796 at this price.
| Help to Buy (30% Government share) | 5% Deposit Scheme | |
|---|---|---|
| Your deposit | $17,000 (2%) | $42,500 (5%) |
| Government contribution | $255,000 (30% share of the home) | None (it guarantees the loan instead) |
| Your home loan | $578,000 | $807,500 |
| Monthly repayment* | $3,634 | $5,077 |
| LMI | None | None |
| If the home is worth $1,000,000 when you sell | Government receives $300,000 (30%) | Nothing owed to the Government |
*Principal and interest over 30 years at 6.45%, an illustrative owner-occupier rate. The actual Government share depends on the lender’s assessment of what you can afford.
The trade-off is clear: Help to Buy cuts the repayment by about $1,443 a month in this example, but the Government shares 30% of any growth (and any fall). For buyers whose income can’t support a full-size loan, that can be the difference between buying and renting. For buyers who can afford the bigger loan, the 5% Deposit Scheme keeps all the growth.
Help to Buy vs the 5% Deposit Scheme
| Help to Buy | 5% Deposit Scheme | |
|---|---|---|
| Minimum deposit | 2% | 5% |
| Income limit | $103,000 single, $165,000 joint | None |
| Sydney price cap | $1.3 million | $1.5 million |
| Who can apply | Australian citizens | Citizens and permanent residents |
| Lenders | Four participating lenders | A large panel of lenders |
| Share of growth | Government shares growth and falls | All yours |
| Repaying the Government | On sale, refinance away, or if income stays over the limit | Nothing to repay |
You can’t use both on the same purchase. See our 5% Deposit Scheme guide for that scheme’s rules.
Repaying the Government’s share
- Voluntary buy-backs: at least 5% of the home’s value at a time, whenever you can afford it (you pay for the valuation).
- If your income rises: Housing Australia reviews your income at least every five years. If it is over the limit for two financial years in a row, your lender assesses whether you can afford to buy back some or all of the share.
- When you sell, the Government receives its percentage of the sale value.
- Refinancing: you can refinance with another participating lender; refinancing to any other lender means buying back the share in full.
- Renovations: works over $21,000 (or needing council approval) need Housing Australia to be told first, so the value you add is credited to you.
Which lenders offer it, and broker access
As at October 2026 there are four participating lenders: Commonwealth Bank, Bank Australia, the Teachers Mutual Bank group (Teachers Mutual Bank, Health Professionals Bank, UniBank and Firefighters Mutual Bank) and Queensland Country Bank. Bank Australia and Queensland Country Bank (from 6 October 2026) take applications through brokers. Teachers Mutual is opening broker access in stages, starting with brokers who have completed its Help to Buy training, with wider access planned through 2027. The scheme has 10,000 places a year.
Is Help to Buy right for you?
- Often a good fit: single buyers and single parents on moderate incomes, essential workers, and buyers whose borrowing power falls well short of the homes they need.
- Often better elsewhere: buyers who can borrow enough on their own (the 5% Deposit Scheme keeps all the growth), permanent residents (not eligible), and anyone over the income limits.
- Think about the exit: plan how you’ll buy back the share as your income grows, because the buy-back price rises with the home’s value.
Still working out your numbers? See how much to save for a first home and how much you can borrow.
Help to Buy: common questions
What is the Help to Buy scheme?
Help to Buy is an Australian Government shared equity scheme run by Housing Australia. You buy with as little as a 2% deposit and the Government contributes up to 30% of the price of an existing home or up to 40% of a new home, in exchange for the same share of the home’s value. You pay no interest or rent on the Government’s share and no lenders mortgage insurance.
What are the Help to Buy income limits in 2026?
For 2026–27, taxable income of $103,000 or less for a single applicant, and $165,000 or less combined for joint applicants or single parents. Income is taken from your last Notice of Assessment, and the limits are indexed every 1 July.
What is the Help to Buy price cap in Sydney?
$1.3 million in Sydney and NSW regional centres, and $800,000 in the rest of NSW. Other caps include $950,000 in Melbourne, $1 million in Brisbane and Canberra, $850,000 in Perth and $900,000 in Adelaide.
Do I have to pay the Government back?
Yes, eventually. You repay the Government’s share when you sell, when you refinance to a lender outside the scheme, or if your income stays above the limit for two financial years in a row and your lender assesses you can afford it. You can also buy back part of the share voluntarily, at least 5% of the home’s value at a time. The repayment is based on the home’s value at that time, not the original amount.
Can permanent residents use Help to Buy?
No. Help to Buy is only open to Australian citizens aged 18 or over. Permanent residents can use the 5% Deposit Scheme instead, which has no income limits.
Can I use Help to Buy with the First Home Owner Grant or stamp duty concessions?
Yes. You can claim state first home owner grants and stamp duty concessions with Help to Buy. You can’t combine it with the 5% Deposit Scheme or other government shared equity schemes, loans or guarantees.
Which lenders offer Help to Buy?
As at October 2026, four participating lenders: Commonwealth Bank, Bank Australia, the Teachers Mutual Bank group (including Health Professionals Bank, UniBank and Firefighters Mutual Bank) and Queensland Country Bank. Bank Australia and Queensland Country Bank accept applications through brokers; Teachers Mutual is opening broker access in stages.
Which scheme suits you?
Help to Buy, the 5% Deposit Scheme, a family guarantee or a standard loan: the right path depends on your income, savings and the home you want. We compare them on your real numbers in a free 15-minute chat. This is general information, not advice for your situation.