Help to Buy opened for applications on 5 December 2025. In its first seven months, Housing Australia says the scheme received more than 7,200 applications, of which 4,800 had found a home to live in or already settled, with the rest still looking. The same update, published on 1 July 2026, puts the median deposit at about $30,000, with 86% of participants first home buyers and almost seven in ten applying on their own. Tasmania joined on 9 June 2026, so the scheme now runs in every state and territory, with a fresh 10,000 places released for 2026-27.
The arithmetic is what draws people in. On an existing Sydney unit bought at the $1,300,000 cap, the minimum deposit is $26,000 and the Commonwealth can put in up to $390,000, leaving a home loan of $884,000. That loan is more than a single applicant on the $103,000 income cap could service, and a stretch even for a couple at $165,000, so the price caps and the income caps rarely meet in one purchase. This guide sets out how the scheme works in 2026, what the government's share really costs when values rise and fall, how it compares with the First Home Guarantee and a plain loan with lenders mortgage insurance, and where the traps are.
How Help to Buy works in 2026
Help to Buy is a Commonwealth shared equity scheme run by Housing Australia. The government pays part of the purchase price and takes a matching share of the home. Your name is on the title, you live in it, and you pay no rent and no interest on the government's slice. When you sell, or buy the share back, the government receives its percentage of the value at that time.
| Parameter | 2026 rule |
|---|---|
| Minimum deposit | 2% of the purchase price |
| Government share | Between 5% and 30% of an existing home, between 5% and 40% of a new home |
| Income cap (taxable, prior-year tax return) | $103,000 single, $165,000 for couples and single parents, indexed each 1 July |
| Places | 10,000 a year; Housing Australia expects the scheme to support up to 40,000 households over the next three years |
| Rent or interest on the share | None |
| Participating lenders | Bank Australia, Commonwealth Bank, and Teachers Mutual Bank Limited's four brands (Teachers Mutual Bank, Health Professionals Bank, Firefighters Mutual Bank and UniBank), which joined on 27 July 2026; the bank says the scheme reaches its accredited broker network from 6 October 2026 |
| Buy-back | Any time, in steps of at least 5% of the home's current value |
| Who it is for | Australian citizens aged 18 or over who own no other property and will live in the home |
Two details in the fine print matter more than the headline percentages. First, the 30% and 40% are ceilings, not defaults. The Customer Guide says you contribute the maximum you can afford under your lender's assessment, and the government contributes "as much as is necessary" up to its cap and to keep you clear of lenders mortgage insurance. If your bank will lend you 80% and you have 5%, the Commonwealth's share is 15%, not 30%. Second, the income caps were lifted from $100,000 and $160,000 to $103,000 and $165,000 on 1 July 2026 under the scheme's annual wage indexation, and they will move again next July.
Price caps depend on the postcode, with a higher tier for capitals and named regional centres.
| State or territory | Capital city and regional centres | Rest of state |
|---|---|---|
| New South Wales | $1,300,000 | $800,000 |
| Victoria | $950,000 | $650,000 |
| Queensland | $1,000,000 | $700,000 |
| Western Australia | $850,000 | $600,000 |
| South Australia | $900,000 | $500,000 |
| Tasmania | $700,000 | $550,000 |
| ACT | $1,000,000 | n/a |
| Northern Territory | $600,000 | $600,000 |
The regional centres on the capital-city tier are Newcastle and Lake Macquarie, Illawarra, Central Coast, Mid-North Coast, Coffs Harbour-Grafton and Richmond-Tweed in NSW, Geelong in Victoria, and the Gold Coast and Sunshine Coast in Queensland. Housing Australia cannot approve a purchase above the cap, and a suburb with two postcodes can sit in two tiers, so check the postcode tool before you fall for a property.
What the government's share really costs
Take a $750,000 existing unit, close to Cotality's combined-capital unit median of $748,268 in August 2026. Assume the Commonwealth takes its full 30% ($225,000), you put in the 2% minimum ($15,000) and borrow $510,000 at 6% over 30 years. Your repayment is about $3,058 a month, and after five years the loan balance is about $474,577.
Here is what you would owe the government at a sale or full buy-out after five years, across three markets.
| Market over 5 years | Home value | Government's share at exit | Change on its $225,000 | Your equity after bank and government |
|---|---|---|---|---|
| Up 5% | $787,500 | $236,250 | +$11,250 | $76,673 |
| Flat | $750,000 | $225,000 | $0 | $50,423 |
| Down 5% | $712,500 | $213,750 | -$11,250 | $24,173 |
The honest reading is that in a falling market the government shares the loss. If your unit is worth 5% less, you buy the Commonwealth out for $11,250 less than it paid, because the scheme's own documents say the share "grows or shrinks" with the home's value. A bank loan does not shrink, which is why shared equity is a softer landing than a 95% loan if the 2026 downturn deepens.
The trade is simplest to see as a rate. The government's share costs you the property's growth rate on that money, and saves you the mortgage rate on it. Over the same five years, borrowing $202,500 less than a First Home Guarantee buyer saves about $58,780 in interest. If the unit grew 5% a year instead, the government's share would be worth $287,163 at exit, $62,163 more than it paid, and the two figures roughly cancel. Below 5% a year the government is a cheap partner; above it, an expensive one. With Sydney and Melbourne more than 5% below their peaks and the national index down five months straight to August 2026, growth is not what buyers are giving up right now. Over a 30-year hold, nobody can promise which way it goes.
Help to Buy vs the First Home Guarantee vs going solo
The First Home Guarantee is the other Commonwealth path, and since 1 October 2025 it has had no income test and no cap on places. You put in 5%, Housing Australia guarantees up to 15% to the lender, and you skip LMI but carry the full loan. The third path is a plain loan with LMI. On the same $750,000 unit, at the same 6%:
| Help to Buy | First Home Guarantee | Solo, 5% deposit plus LMI | |
|---|---|---|---|
| Deposit | $15,000 | $37,500 | $37,500 |
| LMI premium | None | None | About $30,797, added to the loan |
| Home loan | $510,000 | $712,500 | $743,297 |
| Monthly repayment | $3,058 | $4,272 | $4,456 |
| Interest paid in 5 years | $148,040 | $206,820 | $215,760 |
| Government owns | 30% | Nothing | Nothing |
| Income cap | $103,000 / $165,000 | None | None |
| Your equity after 5 years, flat market | $50,423 | $86,988 | $58,330 |
| Your equity after 5 years, down 5% | $24,173 | $49,488 | $20,830 |
The LMI figure is money.com.au's estimate, updated 27 August 2026, from Westpac's calculator for a 95% loan on a $750,000 purchase. The line worth pausing on is the last one. In a market that falls 5%, the buyer who paid LMI and borrowed 95% ends up with less equity than the Help to Buy buyer, having paid about $1,400 a month more to get there. The Guarantee buyer has the most equity in every scenario, because every dollar of principal repaid is theirs, but pays $1,214 a month more than the Help to Buy buyer for it, which is $72,845 over five years.
Price caps differ too. The Guarantee's Sydney cap is $1,500,000; Help to Buy's is $1,300,000. Both leave stamp duty with you, and state concessions apply whichever path you take, so the stamp duty rules in your state still decide a large slice of your upfront cost.
Who should pick which
Help to Buy suits a buyer whose problem is the monthly repayment, not just the deposit. If your income sits under the cap and a serviceability test would knock a 95% loan back, cutting the loan by nearly a third is what gets the application through. It also suits anyone who expects modest growth and wants less exposure if prices keep drifting. The cost is a government share of every dollar of growth, and living under its rules until you buy it out.
The First Home Guarantee suits a buyer who can service the full loan and wants all the upside. With no income cap and uncapped places it is the default for higher earners, and there is no partner to buy out later. Read it alongside a hard look at your borrowing capacity, because the three 2026 rate rises took tens of thousands off what a 95% borrower can get approved.
Going solo with LMI makes sense mainly when the buyer or the property fits neither scheme: a price above the caps, a second home, a non-citizen. Buyers who cannot reach any of these on one income sometimes look at co-buying with family or friends instead, which pools two deposits and two incomes without a government partner.
Eligibility traps
Early coverage of the scheme, including this site's 2025 guide, predicted an annual income review. That is not what shipped. Housing Australia contacts you every year to check the home is insured, but reviews your taxable income at least once every five years, using your last two tax returns. If your income is over the indexed threshold for two financial years in a row, your lender assesses whether you can afford to repay at least 5% of the government's share, at current market value, within 90 days. If you cannot, you are reassessed in 12 months, and Housing Australia will not force a repayment that would push you into LMI. A pay rise does not evict you, but it does start a clock.
The other rules that catch people:
- You must live in it. Renting the home out, running a business from it, or treating another property as your main residence all need written approval, with exemptions for Defence postings and some employment relocations. Rentvesting is off the table.
- The share is priced on the day. Every buy-back is at market value, in steps of at least 5%, and you pay for the valuation. Buying back a slice while values are down is cheaper than waiting for the recovery.
- Refinancing is restricted. Your loan must stay with a participating lender unless you buy the government out in full as part of the refinance.
- Renovations over $21,000 need notice first. Tell Housing Australia before you start and pay for a before-and-after valuation, and the government's share is reduced so you keep the uplift. Skip the notice and its percentage stays put, so it shares in the value your money created.
- Approvals expire. Conditional approval reserves your place for 90 days, with one 90-day extension if you ask before it lapses. Off-the-plan purchases must have construction under way when you sign and settle within 90 days of final approval.
- Your loan is still a bank decision. Meeting the scheme criteria does not guarantee a loan, and lenders apply their own property rules on top.
The state schemes still running
Help to Buy cannot be stacked with a state shared equity scheme, so where a state scheme is still open the choice is one or the other. Two states have already wound theirs up.
| Scheme | Status in September 2026 | Government share and limits |
|---|---|---|
| VIC Homebuyer Fund | Closed to new applicants 10 September 2025 after helping more than 16,100 Victorians; existing participants continue | Not available to new buyers |
| NSW Shared Equity Home Buyer Helper | Pilot closed 30 June 2024; existing participants stay with Revenue NSW | Not available to new buyers |
| WA Keystart Shared Home Ownership | Open, but Opening Doors WA says available homes are "currently limited"; 1,800-plus buyers since 2011 | Up to 30% of the purchase price; income limits $70,000 for a single, $90,000 for a couple or family |
| WA Urban Connect Shared Equity (Keystart) | Open | The Housing Authority contributes up to $250,000; newly built, under construction or off-the-plan apartments, townhouses, units and villas; 2% deposit; income and price limits are published on Keystart's site |
| SA HomeStart Shared Equity Option | Open | HomeStart takes an equity share, with income and purchase price limits; check HomeStart for the current figures |
| TAS MyHome (Homes Tasmania, Bank of us) | Open alongside Help to Buy | Shared equity on new and existing homes, written through Bank of us; check Homes Tasmania for the current shares, price caps and deposit |
Tasmania is the interesting case, because MyHome and Help to Buy now overlap and only one of them can apply to a purchase. Homes Tasmania publishes MyHome's current contribution and price caps, and they are worth running against 40% of Help to Buy's $700,000 Hobart cap with a lender before you choose, because Help to Buy also opens up the big banks. Either way, a contract that a government has to approve can lose to a faster offer, so build the approval timetable into the negotiation.
Frequently asked questions
Can I combine Help to Buy with the First Home Guarantee?
No. The Customer Guide rules out receiving proceeds from any other Commonwealth shared equity scheme, home buyer guarantee, or state loan or guarantee on the same purchase. The two schemes are alternatives, and the comparison table above is the choice you are making. You can still claim a first home owner grant and your state's stamp duty concession on top of Help to Buy.
What happens if my income rises above the cap?
Nothing on the first year over. If your taxable income exceeds the indexed threshold for two financial years in a row, your lender runs a financial assessment. If it shows you can afford to repay at least 5% of the government's share, you do so within 90 days at current market value. If not, you are reassessed in 12 months.
Can I renovate a Help to Buy home?
Yes. Work under $21,000 in a year that needs no council approval can go ahead without telling anyone. Above that, notify Housing Australia first and pay for valuations before and after, and the government's share is adjusted so the value you add stays yours. The Customer Guide's own example: a $60,000 uplift on a $700,000 home where the government held 20% cuts its share to 18.4% ($140,000 of $760,000).
What if the home falls in value?
The government's share falls with it. On the $750,000 unit above, a 5% drop cuts the Commonwealth's stake from $225,000 to $213,750, so you would buy it out or sell for less than it paid. Your bank loan does not shrink, so the risk of owing more than the home is worth still sits on the 68% you borrowed, but that is a smaller loan than any other 2% or 5% deposit path.
What to do now
Start with the postcode tool on firsthomebuyers.gov.au, because the cap is decided by postcode and there is no appeal above it. Get your last tax return lodged so the Notice of Assessment is ready; the threshold that counts is the one in force when your final application is approved. Then run both schemes on the same property. Not every participating lender takes Help to Buy through brokers yet, so confirm the channel before you start, and a mortgage broker who has done Help to Buy files can model the Guarantee and shared equity side by side on your numbers.
Once you have conditional approval, treat the 90-day clock as the search window it is. Vendors are wary of buyers whose contract needs a third party's sign-off, and the letter of support Housing Australia gives you is worth showing early. A buyer's agent who has settled scheme purchases can keep the contract inside the settlement rules while still winning the negotiation, and GoMatch will introduce you to vetted agents in your area for free.
The figures here were checked against Housing Australia's July 2026 Customer Guide and Fact Sheet, and the income caps will move again on 1 July 2027. None of this is personal financial advice; it is general information to help you ask better questions of your lender and adviser.
Sources
- Housing Australia, Help to Buy Scheme Customer Guide, version 260701, 1 July 2026.
- Housing Australia, Australian Government Help to Buy Scheme Fact Sheet, version 260701, 1 July 2026.
- Housing Australia, firsthomebuyers.gov.au, Help to Buy scheme page, Help to Buy property price caps page and Help to Buy participating lenders page, accessed 7 September 2026.
- Housing Australia, firsthomebuyers.gov.au, "Help to Buy income and threshold updates 2026-27", accessed 7 September 2026.
- Housing Australia, Help to Buy Target Market Determination, effective 5 December 2025.
- Housing Australia, media release, "More Australians set to benefit as Help to Buy expands from 1 July 2026", 1 July 2026.
- Housing Australia, media release, "Teachers Mutual Bank Limited joins Help to Buy, expanding opportunities for essential workers", 27 July 2026.
- Housing Australia, news, "The Australian Government Help to Buy Scheme is now available in Tasmania", 5 June 2026.
- Housing Australia, media release, "Australians begin moving into homes purchased under the Australian Government Help to Buy Scheme", 10 February 2026.
- Housing Australia, firsthomebuyers.gov.au, "Australian Government 5% Deposit Scheme" and "Property price caps", accessed 7 September 2026.
- Housing Australia, media release, "Home ownership a reality for over 300,000 Australians supported by the Australian Government 5% Deposit Scheme", 30 March 2026.
- State Revenue Office Victoria, "Victorian Homebuyer Fund closed to new participants", 10 September 2025 (updated 2 December 2025).
- Revenue NSW, "Shared Equity Home Buyer Helper" (previous schemes), accessed 7 September 2026.
- Keystart, "Urban Connect Shared Equity Home Loan", accessed 7 September 2026.
- Opening Doors WA (Department of Communities and Keystart), "Shared Home Ownership", accessed 7 September 2026.
- HomeStart Finance, "Shared Equity Option", accessed 7 September 2026.
- Money.com.au, "Lender's Mortgage Insurance Guide: How Much Is LMI In 2026?", updated 27 August 2026.
- Cotality, "Home Value Index", index results as at 31 August 2026, released 1 September 2026.
