For many Australians, the dream of building a home is often delayed by one major hurdle: saving a large deposit. Rising property prices, rental costs and stricter lending requirements can make it difficult to get started, even for households with solid incomes.
That's where the Australian Government's Help to Buy Scheme comes in. Designed to reduce both the deposit required and the size of your mortgage, Help to Buy gives eligible buyers the opportunity to enter the market sooner by partnering with the Government through a shared equity arrangement.
If you're planning to build your first home, here's everything you need to know.
Help to Buy is an Australian Government shared equity scheme that assists eligible home buyers by contributing towards the purchase price of a home. In return, the Government receives an equivalent ownership interest in the property.
Unlike a grant, the Government's contribution is not free money. Instead, it becomes an equity stake in your property that you can repay over time or when you eventually sell the home.
The scheme is designed to help Australians who can afford home loan repayments but need additional support to bridge the gap between their savings and the cost of buying or building a suitable home.
The Government's contribution significantly reduces the amount you need to borrow, resulting in lower repayments and improved borrowing capacity.
Let's say you're building a home valued at $750,000.
Instead of borrowing $735,000, you'd only need a mortgage of $435,000, dramatically reducing your loan size and monthly repayments.
To access the Help to Buy Scheme, applicants must satisfy several eligibility requirements.
Current income thresholds:
Property Ownership Requirements
The property must be your principal place of residence. Applicants must not:
One of the biggest benefits of Help to Buy is the low deposit requirement. Eligible buyers can participate with a minimum deposit of just 2% of the purchase price.
For example:
Property Value | Minimum Deposit Required |
|---|---|
$600,000 | $12,000 |
$700,000 | $14,000 |
$800,000 | $16,000 |
This can dramatically reduce the time required to save for home ownership.
No. One of the key advantages of Help to Buy is that eligible participants do not need to pay Lenders Mortgage Insurance (LMI).
Depending on the property value and lender, avoiding LMI could save buyers thousands or even tens of thousands of dollars in upfront costs.
Shared equity means the Government becomes a silent investment partner.
If the Government contributes:
You continue to:
However, when you sell the property or buy out the Government's share, the Government receives the value of its ownership percentage at that time.
Yes. Participants can purchase back the Government's equity share over time, allowing them to gradually increase their ownership percentage.
This flexibility means buyers can start with Government assistance and move towards full ownership as their income and financial position improve.
The Help to Buy Scheme has a limit of 10,000 places per year with applications are made through participating lenders.
Because annual places are capped, interested buyers should speak with MyChoice Home Loans or participating lenders to find out more.
In many cases, buyers may also explore additional assistance programs such as:
Buyers should seek professional advice to understand which incentives can be combined based on their circumstances.
Disclaimer: Eligibility criteria, income thresholds, participating lenders and property caps may change. Always confirm current requirements with Housing Australia and a qualified lending professional before making financial decisions. For further information please visit: https://firsthomebuyers.gov.au/australian-government-help-buy-scheme
Explore our award-winning, architecturally inspired designs, and let us assist you in bringing to life the home of your dreams.
Log in to your account and pick up where you left off.
Make your account and keep your home design faves right where you left them.
Save your preferred home designs and specific structural choices so you can easily share them with family and friends, make thoughtful updates at your own pace, and seamlessly compare different layouts side-by-side.
Please select your desired build region so we can personalise your content.