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Bridging the gap to buying your new home

Australian Government Help to Buy Scheme

About the Scheme

The Australian Government Help to Buy Scheme is a shared equity initiative to support more Australians into a home. If you've saved what you can but are still a little short, Help to Buy may bridge the gap. Under the Scheme you save a minimum 2% deposit and take out a home loan from a Participating Lender. The Government contributes up to 30% (existing homes) or up to 40% (newly built homes) towards the purchase price. This bridges the gap between your deposit, what you can borrow and the price of a home that suits you, and removes the need for Lenders Mortgage Insurance. You own the home, and the Government shares proportionally in any gains or losses when you sell or buy out its equity share.

Scheme details & eligibility

How it works

• You save a minimum 2% deposit and obtain a home loan from a Participating Lender.
• The Government contributes up to 30% (existing homes) or 40% (new homes) toward the purchase price, reducing what you need to borrow.
• You can make voluntary repayments to increase your equity share over time, buy back the Government's share outright, or repay it when you sell.
• Example: on an $800,000 home, a $16,000 deposit (2%) plus a $544,000 loan (68% LVR) and a $240,000 Government contribution (30% equity share) completes the purchase.

Eligibility

• Be at least 18 years old and an Australian citizen
• Have a minimum 2% deposit of the purchase price
• Annual taxable income at or below $103,000 (individuals) or $165,000 (single parents and joint applicants)
• Live in the home as your principal place of residence. Investment or rental use is not allowed
• Not own or beneficially own any property in Australia or overseas (some exceptions for single parents)
• Not be receiving other Australian Government shared equity assistance for the same purchase

How to apply

• 1. Check your eligibility using the Help to Buy Eligibility Tool.
• 2. Find a Participating Lender to assess your eligibility and discuss if Help to Buy suits you.
• 3. Your lender assesses your financial position and submits a conditional approval application to Housing Australia.
• 4. Once conditionally approved, you have up to 90 days (extendable) to find a home and sign a contract of sale.
• 5. Complete settlement with your lender and Housing Australia's conveyancer. Then you're a homeowner and Help to Buy participant.

More information