Help to Buy: the government owns part of your home. Here is what that means.
Help to Buy is a shared equity scheme. The government puts in up to 40% of the purchase price for a new home (30% for existing). Your minimum deposit is 2% of the purchase price. Your mortgage covers the rest. This is separate from the 5% Deposit Scheme, which requires 5% from most buyers (or 2% for single parents) but lets you own 100%.
Based on the published scheme design, you pay no rent or interest on the government's share, provided you meet the scheme conditions (living in the property, maintaining insurance, keeping it in good repair). Your repayments are dramatically lower because you are borrowing much less. For a lot of buyers, this is what makes the numbers work.
The catch is in the name: shared equity. The government owns a percentage of your home. When you sell, they get that percentage of the sale price. If the property went up 30%, the government's share went up 30% too. If it went down, they absorb their share of the loss.
This is not a loan. There is nothing to repay while you live there. But when you sell, move out, or buy the government out, the maths kicks in. The tool below shows exactly how.
See how shared equity works
Adjust the sliders to see who owns what, and what happens when you sell.
Estimates for illustration only, not financial advice. See full disclaimer below.
Property type
2% minimum under Help to Buy (this tool). The government co-owns your home.
5% minimum under the 5% Deposit Scheme (no shared equity, you own 100%). Single parents: 2%.
Who owns what at purchase
You save $1,049/mo on repayments. In return, the government keeps 30% of whatever your home is worth when you sell.
Monthly repayments
With scheme
$2,728/mo
On a $455,000 mortgage
Without scheme
$3,777/mo
On a $630,000 mortgage
$1,049 less per month. In exchange, the government owns 30% of your home's future value.
The full picture over time
Your repayment savings vs the government's share of property growth. Adjust the growth rate to see how sensitive the outcome is.
At 4.0% growth, your repayment savings stay ahead of the government's equity gain over 20 years.
Try higher growth rates to see where the crossover happens.
All figures are nominal (not adjusted for inflation). The repayment difference assumes you save every dollar. If you spend it, your actual benefit is lower. This does not account for returns you could earn by investing the difference. Property growth varies significantly by location and period: Sydney ~7% pa, regional ~3% over 20 years (ABS, CoreLogic). Past growth does not predict future growth.
What happens when you sell
The government gets their 30% of whatever the home sells for. You keep your 70%.
Include selling costs
Agent commission, legal, marketing. You pay 100% of these, not the government.
Where the money goes
The property sold at the same price you paid. The government gets back exactly what they put in.
Comparison (assumes 10% deposit without scheme)
Selling costs are deducted from both scenarios above.The "without scheme" column assumes a 10% deposit with a full mortgage. For many buyers eligible for Help to Buy, this may not be realistic. A broker can tell you what you could borrow without the scheme.
The trade-off in plain terms
Lower repayments now. You are borrowing $455,000 instead of $630,000. That saves you $1,049 every month.
Less profit later. When you sell, the government takes their 30% of the sale price. If the property goes up, they share in the gain. If it goes down, they share in the loss.
You can buy them out.At any time, you can buy back the government's share in 5% increments at current market value. As your income grows, you can gradually own 100% of your home.
This tool is for illustration purposes only. Check firsthomebuyers.gov.au for current eligibility rules, property price caps, and participating lenders. Income caps, property price caps, and equity share limits may change. Confirm current figures before making decisions. Mortgage repayments assume principal and interest over 30 years at your selected rate. Actual rates vary by lender and product. This is not financial or legal advice. Speak to a mortgage broker, financial advisor, and property lawyer before making any decisions.
Who is this for?
To be eligible, you need to be an Australian citizen earning under $90,000 (single) or $120,000 (couple). You cannot currently own property. Property price caps apply by city and region. There are 40,000 places.
The income cap is tested at application time. If your income rises after purchase, that does not automatically trigger repayment.
Buying the government out
You can buy back the government's share over time, in increments of at least 5% of the current market value. The buyback price is based on a valuation at the time (conducted by a valuer approved by Housing Australia, not one you choose). You fund the buyback from your own savings or by refinancing your mortgage (refinancing requires Housing Australia's approval).
Some buyers use this as their long-term strategy: buy back 5% here, 10% there, as income grows, until they own 100%. The sooner you do it, the less of your capital growth you share. If the property has risen significantly in value, the buyback cost will be higher than the original equity amount.
When repayment is triggered
- You sell the property
- You stop living in it as your primary home (e.g. you move out and rent it)
- You transfer the title to someone else, including through a family law property settlement
- You refinance without Housing Australia's approval
- You breach the scheme conditions (e.g. failing to maintain insurance or the property)
- Bankruptcy or insolvency
- The owner passes away (the estate must repay the government's share, either by selling or buying out the equity)
- The maximum scheme participation period expires (check the current term at firsthomebuyers.gov.au)
There may be additional triggers under the final scheme rules. Read the full scheme conditions before signing.
Restrictions while in the scheme
This is not the same as owning a home outright. While in the scheme, you have ongoing obligations:
- You must live in the property as your primary home. You cannot rent it out or list it on Airbnb without approval.
- Renovations above a certain threshold may require Housing Australia's approval.
- You must maintain adequate building insurance at all times.
- You must keep the property in reasonable repair.
- You cannot refinance your mortgage without Housing Australia's consent.
As co-owner, Housing Australia registers a caveat or statutory interest on your property title and has consent rights over refinancing, renovations, and transfers. Your conveyancer will see this on the title search.
If you buy with a partner and later separate
The government's equity share remains regardless of what happens between you and your partner. The property cannot be transferred to one party without Housing Australia's approval. Family Court property settlements will need to account for the government's ownership interest. This is not a debt that can be split. It is an ownership stake that persists until you sell or buy it out.
Housing Australia may need to be joined as a party to Family Court proceedings, or at minimum given notice, because their interest is proprietary, not just contractual. If you are buying jointly, get independent legal advice about how shared equity interacts with family law before you sign.
Things to watch
- Stamp duty. In most states, you pay stamp duty on the full purchase price, not just your share. Check with your conveyancer whether your state offers stamp duty concessions for Help to Buy participants, as rules vary and have changed since the scheme launched.
- Capital gains tax. Your primary residence is normally CGT-exempt when you sell. How the government's equity portion interacts with this exemption under a shared equity arrangement may depend on the final scheme rules and ATO guidance. Ask your accountant before committing.
- Not all lenders participate. Only lenders who have signed up with Housing Australia can offer Help to Buy loans. Your choice of lender (and therefore rates and features) may be more limited than the open market.
- Property price caps. The scheme has price caps by location: $950k in Sydney, $850k in Melbourne, $650k in Brisbane, and lower in regional areas. Check the current caps at housingaustralia.gov.au.
- LMI. Even with Help to Buy, your loan-to-value ratio relative to the full property may technically exceed 80%. Whether LMI applies depends on the participating lender's arrangement with Housing Australia. Confirm this with your broker.
Help to Buy vs the 5% Deposit Scheme
These are two different federal schemes. The minimum deposit depends on which one you use and your circumstances.
| 5% Deposit Scheme | Help to Buy | |
|---|---|---|
| Minimum deposit | 5% (most buyers) 2% for single parents (Family Home Guarantee) | 2% (all buyers) |
| You own | 100% | 60% to 98% |
| Government gets when you sell | Nothing | Their % of sale price |
| LMI | No | Depends on lender |
| Income caps | Removed (Oct 2025) | $90k single, $120k couple |
| Places | Uncapped | 40,000 |
| Monthly repayments | Higher (full mortgage) | Lower (smaller mortgage) |
A mortgage broker can model both options for your situation. The key question: can you afford the repayments on a full mortgage with 5% down? If yes, the 5% Deposit Scheme gives you 100% ownership and you keep all your gains. If the repayments are too high, Help to Buy reduces them but shares your future equity.
The honest assessment
Help to Buy makes buying affordable today. The monthly savings are real and meaningful. For someone who cannot otherwise get into the market, this scheme removes the biggest barrier.
The cost is that you share your upside. If your home doubles in value over 15 years, the government takes their percentage of that gain. For a 30% share on a home that went from $700k to $1.4M, that is $210,000 going to the government instead of your pocket.
Some buyers find that building equity through homeownership, even shared, is worthwhile compared to renting while saving a larger deposit. Others may prefer to wait, save more, and buy without sharing equity. The right answer depends on your income trajectory, the local property market, how long you plan to stay, and what alternatives you have. A financial advisor can model both paths for your situation.
Use the tool above to model your specific numbers. Talk to a mortgage broker about whether this scheme, the First Home Guarantee, or standard borrowing works best for your situation.
Current status
The Help to Buy scheme launched on 5 December 2025 and is now accepting applications in participating states and territories. Check firsthomebuyers.gov.au for confirmed eligibility rules, property price caps, and participating lenders.
Sources
- firsthomebuyers.gov.au/help-buy — official scheme page. 2% minimum deposit, up to 40% equity (new) / 30% (existing), 40,000 places. Customer guide, fact sheet, and eligibility tool.
- Treasury: Home ownership support — federal government overview of all home buyer schemes including Help to Buy, the 5% Deposit Scheme, and FHSS.
- Housing Australia — administers the scheme. Current status, participating lenders, and property price caps.
- ASIC Moneysmart: First home buyer — independent government comparison of all first home buyer schemes.
Important: This article is general information only. It does not constitute financial advice, legal advice, credit assistance, or a recommendation of any financial product. Scheme details are based on published information as at March 2026. Rules, caps, and eligibility may change.
Before making any decisions, speak to a licensed mortgage broker, financial advisor, and property lawyer who can assess your specific circumstances. Consult a property lawyer before entering any shared equity arrangement.
Last reviewed: March 2026.
More guides for buyers
housematch shows this data on every listing.
Bushfire ratings, school catchments, flood zones, transit times, comparable sales, and true ownership costs. All before you visit.