For many buyers across Sydney, saving a deposit is no longer the only challenge. Even with a steady income and careful budgeting, the gap between what you can reasonably borrow and current property prices can feel difficult to close. This is where the Help to Buy Scheme in Australia has become part of the conversation.
At the time of writing, applications for the Australian Government Help to Buy Scheme can be made through participating lenders. It introduces a shared equity approach that may allow eligible buyers to enter the market sooner, without needing a full traditional deposit or taking on a higher level of debt. At the same time, it comes with specific rules, long-term obligations, and lender assessment requirements that are important to understand clearly before you apply.
In this guide, we explain how the Help to Buy Scheme works in practice, who may be eligible, how property price caps apply in Sydney, and what you should prepare before speaking with a participating lender. We also share how mortgage brokers in Sydney typically interpret this scheme alongside current Australian lending policies, serviceability rules, and real-world borrower scenarios.
What the Australian Government Help to Buy Scheme Is Designed to Do
The Help to Buy Scheme is a shared equity scheme in Australia, administered by Housing Australia on behalf of the Australian Government. Its purpose is to support eligible home buyers who have saved what they can but still fall short of purchasing a suitable home under standard lending arrangements.
Under Help to Buy, the Government contributes part of the property’s purchase price. In return, the Government holds an equity interest in the property, rather than charging interest or requiring repayments in the same way a lender does.
It is important to understand what Help to Buy is not. It is not a cash grant, it is not a guarantee scheme, and it does not replace a home loan. You still need to qualify for and maintain a standard mortgage with a participating lender. The scheme works alongside normal lending rules, not instead of them.
How Shared Equity Works Under Help to Buy
Understanding how shared equity operates in practice is essential, as it affects how much you borrow, how ownership is structured, and how future repayments are calculated.
The Government’s Contribution
Under the Help to Buy Scheme, the Australian Government may contribute:
- Up to 30% of the purchase price for an existing home, or
- Up to 40% of the purchase price for a newly built home.
This contribution reduces the amount you need to borrow from a lender. In many cases, this can lower your loan-to-value ratio and reduce your overall debt exposure.
Your Deposit and Home Loan Still Matter
You are still required to:
- Contribute a minimum 2% deposit from genuine savings, and
- Take out a home loan with a participating lender.
The lender will assess your application using their standard credit and serviceability criteria. Income verification, living expenses, liabilities, and credit history are still reviewed in the same way as any other owner-occupied loan.
What Ownership Looks Like in Practice
When you purchase a home under Help to Buy:
- You are listed as the owner on the property title.
- Housing Australia registers an equity interest on the property title, with the legal structure set by the scheme documents and relevant State or Territory requirements.
- You repay only your home loan to the lender on a regular basis.
The Government does not charge interest on its equity share. However, because it owns a percentage of the property value, it will share proportionally in any future capital gains or losses.
How Government Equity Is Repaid Over Time
Help to Buy is designed as a pathway into ownership, not a permanent arrangement.
You may repay the Government’s equity in several ways:
- Making voluntary repayments to buy back portions of the equity over time.
- Refinancing or increasing your loan to buy out some or all of the Government’s share, subject to lender approval.
- Repaying the Government’s share in full when you sell the property.
The amount required to buy back equity is always based on the current market value at the time of repayment, not the original contribution amount. This means repayments can increase or decrease depending on how the property value changes.
This is one of the most important points for buyers to understand early, as it affects how future repayments and equity buy-backs are calculated over time. While Help to Buy can reduce your initial loan size, your long-term planning still needs to account for future equity buy-back costs.
Who the Help to Buy Scheme Is Aimed At
Help to Buy is designed to support specific buyer situations, rather than applying broadly to all home buyers.
The scheme is open to both:
- First home buyers who may be considering a first home buyer home loan, and
- Eligible buyers returning to home ownership.
The Australian Government has stated that 10,000 places are available each year under Help to Buy, so availability can depend on demand and timing.
Help to Buy is generally designed for buyers who:
- Have a stable income but limited borrowing capacity relative to Sydney prices.
- Have genuine savings but struggle to reach a traditional deposit.
- Are comfortable with shared equity and long-term planning obligations.
It may not suit buyers who expect rapid income growth or those who prefer full ownership from the outset.
Help to Buy Eligibility Criteria Explained Clearly
Help to Buy eligibility is assessed through both Housing Australia and the participating lender. You must meet all core criteria at the time of application.
Age and Citizenship
You must:
- Be at least 18 years old, and
- Be an Australian citizen.
Eligibility rules can change, so check the official criteria or eligibility tool before applying.
Income Thresholds
To meet Help to Buy income limits, your taxable income must be at or below:
- $100,000 per year for individual applicants, or
- $160,000 per year for couples or single parents.
If your income is close to the eligibility thresholds, the timing of your application can matter, because assessment is based on your most recent ATO Notice of Assessment.
Property Ownership Rules
You generally must not own:
- Any property in Australia, or
- Any property overseas.
There are limited exceptions, particularly for single parents who jointly own property and intend to buy out another party or sell an existing interest. These cases are assessed carefully and are not automatic.
Owner-Occupier Requirement
The property must be:
- Your principal place of residence, and
- Occupied by you while you are part of the scheme.
Investment properties and holiday homes are not eligible.
Property Price Caps and What They Mean in Sydney
Help to Buy includes property price caps based on location. For buyers purchasing in New South Wales, property price caps vary by location and property type. In Greater Sydney, current caps can be up to $1,300,000 for existing homes and up to $800,000 for newly built homes, subject to postcode and Government updates.
For Sydney buyers, this often becomes one of the most practical constraints.
While price caps are designed to reflect regional markets, Sydney’s median prices mean buyers may need to:
- Consider apartments, units, or townhouses rather than detached houses.
- Look at different suburbs or postcodes within Greater Sydney.
The property must also meet the lender’s standard security requirements, which are assessed separately from the Help to Buy eligibility rules. Not all properties under the cap will automatically be acceptable to every lender.
Types of Properties You Can Buy Under Help to Buy
Help to Buy supports a range of property types, provided they meet both scheme and lender requirements.
You may be able to purchase:
- An existing home, including houses, townhouses, apartments, units, or duplexes.
- A newly built home, which may allow for a higher Government equity contribution.
- Vacant land with a construction contract, provided you have signed a comprehensive building contract with an eligible builder.
Off-the-plan purchases and construction loans may involve additional lender assessment. Valuation timing, progress payments, and builder risk are usually considered more closely in these scenarios.
How the Application Process Works in Practice
The application process involves both lender assessment and Government approval, with each step needing to be completed in the correct order.
Step One: Initial Eligibility Check
Most buyers start by using the Government’s eligibility tool. This can provide a quick indication but does not replace a full assessment.
At this stage, many buyers benefit from understanding how income, liabilities, and living expenses will be viewed by lenders, not just whether they meet scheme rules.
Step Two: Applying Through a Participating Lender
You cannot apply directly to Housing Australia. Applications must be submitted through a participating lender authorised to offer Help to Buy.
The lender:
- Assesses your loan eligibility and serviceability.
- Confirms scheme eligibility requirements.
- Submits your application to Housing Australia on your behalf.
Step Three: Conditional Approval and Reservation Period
If approved, you may receive conditional approval and have a scheme place reserved for up to 90 days.
Your approval letter will outline:
- Your maximum purchase price, and
- Key conditions that must be met before settlement.
Step Four: Finding and Buying a Property
Once conditionally approved, you can:
- Make offers on suitable properties within the price cap.
- Typically include a subject to finance clause, depending on legal advice.
Your lender and Housing Australia coordinate before settlement. Housing Australia’s conveyancer will arrange documentation for the Government’s equity interest.
What to Prepare Before You Apply
Preparation often makes the difference between a smooth application and unnecessary delays.
Financial Documents
You will usually need:
- Your most recent ATO Notice of Assessment.
- Payslips or income evidence.
- Bank statements showing your 2% deposit and genuine savings history.
Credit and Liabilities
Your credit report, existing debts, and ongoing commitments are still assessed under standard lending rules. Help to Buy does not bypass serviceability requirements.
Some lenders may assess HELP or HECS debts differently, and this can affect borrowing capacity. Treatment varies by lender and is subject to policy at the time of application.
Budgeting Beyond the Purchase Price
Even with Help to Buy, you still need to plan for:
- Stamp duty, although concessions may apply.
- Legal and conveyancing costs.
- Building inspections, strata reports, and insurance.
Many buyers focus heavily on saving the deposit without fully accounting for other upfront costs, such as stamp duty, legal fees, and inspections.
Ongoing Obligations While You Are in the Scheme
While participating in Help to Buy, you must continue to meet scheme conditions.
This usually includes:
- Maintaining and insuring the property.
- Living in the property as your principal residence.
- Providing updated income or personal information when requested.
Significant changes to your circumstances may need to be reported. The scheme is monitored over time, not just at settlement.
Exiting the Help to Buy Scheme and Moving Toward Full Ownership
Help to Buy is structured to allow flexibility over time.
You may exit the scheme by:
- Making incremental equity repayments.
- Refinancing to buy out the Government’s share, subject to lender approval.
- Selling the property and repaying the Government from the sale proceeds.
Many buyers consider exit strategies early, particularly how and when the Government’s equity share may be repaid in the future. Understanding how future income changes, refinancing conditions, and property values may affect buy-back costs can help you make informed decisions.
How Lenders and Participating Institutions Assess Help to Buy Applications
Help to Buy does not replace standard lending assessment. Applications are still assessed under each lender’s usual credit, serviceability, and security policies, alongside the scheme’s eligibility rules.
This means lenders will typically review:
- Income consistency and sustainability, based on current lending standards.
- Living expenses and existing liabilities, including credit cards, personal loans, and HELP or HECS debts.
- Property suitability, valuation outcomes, and security requirements.
Participation in Help to Buy does not remove the need to meet lender criteria, and outcomes can vary depending on the lender’s policies at the time of application. Lender participation, documentation requirements, and assessment approaches may also change without notice.
What Sydney Buyers Should Consider Before Using Help to Buy
Help to Buy may offer a pathway into the market for some buyers, particularly where deposit constraints are the main barrier. At the same time, shared equity is a long-term arrangement that requires realistic expectations, careful budgeting, and forward planning.
If you are considering the Help to Buy Scheme Australia, understanding both the Government rules and the lender assessment process is essential before you apply.
If you would like to explore how this scheme may interact with your broader borrowing options, our mortgage brokers in Sydney at Unconditional Finance can help you understand the structure, lender requirements, and preparation steps involved, so you can make informed decisions with clarity.
Disclaimer: This information is general in nature and does not take into account your objectives, financial situation, or needs. Eligibility criteria, property price caps, lender policies, and Government scheme rules can change without notice. You should consider obtaining independent legal and financial advice before applying for the Australian Government Help to Buy Scheme or entering into any home loan arrangement.
Frequently Asked Questions (FAQs)
At the time of writing, the Australian Government Help to Buy Scheme is open for applications through participating lenders. Places are capped each year, so availability can depend on demand and timing.
Yes. Help to Buy does not replace a home loan. You must qualify for a standard mortgage with a participating lender and meet their serviceability and credit requirements.
You generally can’t receive Help to Buy at the same time as other schemes that provide shared equity, loans or guarantees (including some State or Territory programs). However, stamp duty concessions, grants and other exemptions may still apply depending on your State or Territory rules.
The Government’s equity contribution does not attract interest. You only pay interest on your home loan, with the rate set by your lender based on their current pricing and assessment criteria.
If the property value increases, the Government’s equity share increases proportionally. Any amount paid to buy back that equity is based on the market value at the time of repayment or sale.
Some lenders may consider self-employed or variable income, provided there is sufficient income history and supporting documentation. Eligibility and assessment can vary depending on the lender’s policy and the borrower’s circumstances.
Help to Buy is income-tested and is generally designed for buyers earning below the scheme’s income thresholds. Applicants who exceed these limits based on their most recent tax assessment are usually not eligible.