Buying a home usually means taking on the full purchase price yourself, with the help of a home loan.
Help to Buy takes a different approach.
Under the Australian Government’s shared equity scheme, up to 10,000 eligible buyers each year may be able to purchase a home with a smaller deposit and a smaller home loan, with the government contributing part of the purchase price.
In return, the government holds a financial interest in the property.
This means you still own and live in the home, but the government shares in the property’s value. If the value of the home changes, the value of the government’s share changes too.
Help to Buy may make home ownership more achievable for some buyers, but it is different from a grant or loan guarantee. It’s important to understand what shared equity means before applying.
How does it work?
Under Help to Buy, eligible buyers provide a minimum 2 per cent deposit and take out a home loan through a participating lender.
The Australian Government can contribute:
- up to 40 per cent of the purchase price for a new home
- up to 30 per cent of the purchase price for an existing home.
The government does not charge rent or interest on its share while you are living in the home.
However, when you sell the property or buy back the government’s share, the amount payable is based on the value of that share at the time.
For example, if the government contributed 30 per cent of the purchase price, it would generally be entitled to 30 per cent of the property’s value when you sell or buy out that share.
You can buy back the government’s share over time or in full, subject to the scheme rules.
Who can use the scheme?
To use Help to Buy, you need to meet the eligibility requirements.
These include:
- being 18 years or older
- being an Australian citizen
- applying as an individual or with one other eligible person
- having taxable income at or below the scheme threshold
- not owning property in Australia or overseas
- living in the home as your main residence while you are part of the scheme
- being able to get a home loan from a participating lender.
For the 2026-27 financial year, the income thresholds are $103,000 for single applicants and $165,000 for single parents or joint applicants.
Note: These income thresholds are indexed each financial year, so it is important to check the current limits before applying.
What types of homes can you buy?
Help to Buy can be used for a new or existing home, including a house, townhouse, apartment or unit.
It can also be used for vacant land where you have an eligible building contract to build a new home.
The property must be within the price cap for the area where it is located. In WA, the current caps are:
- $850,000 for Perth
- $600,000 for regional WA.
Your own purchasing power may be lower than the price cap, depending on your income, deposit, loan approval and other financial circumstances.
How do you apply?
To apply for Help to Buy, you need to speak with a participating lender.
The lender will assess whether you may be eligible for the scheme and whether you can afford the home loan.
You should not put down a deposit or bid at auction until you have conditional approval from both Housing Australia and your participating lender.
Before making an offer, it is also important to check whether the property is eligible, whether it is within the price cap, and whether the settlement timeframe works with the scheme requirements.
What else should you know?
Help to Buy may reduce your upfront costs and the size of your home loan, but shared equity is different from buying a home entirely on your own.
The government will have a financial interest in the property, and that share will need to be repaid when you sell, or when you choose or are required to buy it back.
You should also consider how Help to Buy fits with other support you may be eligible for, including the 5% Deposit Scheme, WA’s First Home Owner Grant or the first home owner rate of duty.
Before applying, check the official Help to Buy information and consider speaking with a participating lender, broker, settlement agent, solicitor or financial advisor so you understand what applies to your situation.
