Government’s Help to Buy Scheme

SBS featured Gambit Property Director Amir Khawaja discussing the Australian Government’s Help to Buy scheme — a shared equity program designed to make home ownership more accessible for low and middle-income Australians.

What Is the Help to Buy Scheme?

The Help to Buy scheme is a federal government initiative where the government contributes up to 40% of the purchase price for a new home (or 30% for an existing home) as a shared equity partner. This means eligible buyers need a smaller mortgage, lower deposit, and avoid paying Lenders Mortgage Insurance.

The scheme is designed for Australians who can afford to service a mortgage but struggle to save a sufficient deposit in today’s market. It targets individuals earning up to $90,000 per year and couples earning up to $120,000 combined.

How It Works

• Shared equity: The government co-owns a portion of the property. You don’t pay rent on the government’s share, but you also don’t receive the full capital gain on that portion when you sell.
• Lower deposit required: Buyers need as little as 2% deposit, with no LMI payable.
• Gradual buyback: Over time, you can buy out the government’s share in minimum 5% increments as your financial position improves.
• Property price caps: Maximum property prices vary by state and location. In Melbourne, the cap applies to both metropolitan and regional areas.

Who Qualifies?

• Australian citizens aged 18 or over
• Must not currently own property in Australia
• Income thresholds: $90,000 for individuals, $120,000 for couples (taxable income)
• Must intend to live in the property as a primary residence
• Limited places available each financial year

What It Means for First Home Buyers

The Help to Buy scheme represents one of the most significant government interventions in housing affordability in recent years. For eligible buyers, it can reduce the upfront barrier to entry by tens of thousands of dollars and substantially lower ongoing repayment obligations.

However, the shared equity model means buyers need to carefully consider the long-term implications — including the cost of buying out the government’s share and the impact on capital gains when selling.