Help to Buy Scheme Australia 2026: Eligibility, Caps, Worked Math
Federal shared-equity scheme: 2% deposit, no LMI, Government takes 30-40% equity. State-by-state price caps for 2025-26, full eligibility checklist, worked example, and the trade-offs nobody tells you about.
Help to Buy is the Federal shared-equity scheme that lets eligible buyers purchase a home with a 2% deposit and the Government taking an equity stake of up to 30% (existing homes) or 40% (new builds). It launched nationally in 2024 with a 10,000-place annual cap, was expanded in 2025, and is now the largest single demand-side support scheme for FHB-adjacent buyers in Australia.
It is also the most poorly understood scheme on the market — partly because the rules differ by state cap, partly because it interacts in complex ways with stamp duty concessions and FHB grants, and partly because most articles describing it are written by lenders with skin in the game. This guide is the rules, the maths, the eligibility checks, and the trade-offs in one place.
Quick summary
You buy the property in your name. The Government holds a registered equity share (not a loan, no interest, no monthly repayment). When you sell, the Government gets back its share of the sale price (i.e. they share in capital gain or loss proportionally). You can also buy out the Government's share at any time.
Eligibility — all conditions must be met
- Income cap: $90,000/yr for singles, $120,000/yr for couples (combined). Tested on prior financial year.
- Citizenship: Australian citizen, resident here. Permanent residents are not eligible (this is a Federal scheme, not a state one — different rule from the FHBAS).
- Owner-occupier: You must move in and live there. Investors not eligible.
- No current property ownership:You and your spouse must not currently own residential property in Australia. (Past ownership is allowed if you don't currently own — this is more generous than the NSW FHBAS "never owned" rule.)
- Property price under state cap: See table below.
Property price caps by location (2026)
Caps differ by capital city vs regional area within each state. Current caps for the 2025–26 financial year:
| State | Capital city cap | Regional cap |
|---|---|---|
| NSW | $950,000 | $600,000 |
| VIC | $850,000 | $650,000 |
| QLD | $700,000 | $550,000 |
| WA | $600,000 | $450,000 |
| SA | $600,000 | $450,000 |
| TAS | $600,000 | $450,000 |
| ACT | $750,000 | — |
| NT | $600,000 | $550,000 |
How the math actually works — worked example
Let's work through a specific case: $700,000 unit purchase in 2150 Parramatta by a single buyer earning $85,000.
- Property price: $700,000
- Government equity (30%, existing dwelling): $210,000
- Buyer's portion: $490,000
- Buyer's deposit (2%): $14,000
- Buyer's loan: $476,000
- Monthly P&I at 6.05%, 30yr: $2,872
- Compare to standard 20% deposit: $4,103/mo (loan $680k)
- NSW transfer duty (FHB exemption): $0
- LMI: $0 (HTB scheme exempts LMI even at 2%)
Total upfront: $14,000 deposit + ~$3,500 conveyancing/inspection =$17,500. Monthly servicing $2,872. Compare to the standard FHB path on the same property: $140,000 deposit + $0 duty + ~$3,500 = $143,500 upfront, $4,103/mo.
The HTB version unlocks the purchase at $17.5k upfront vs $143.5k — an 8x reduction in upfront capital required. The trade-off is on the back end.
The trade-offs nobody tells you about
You give up 30% of capital gain
If your $700k Parramatta unit appreciates to $900k over 5 years, the Government's 30% share grows from $210k to $270k. You get $630k instead of $900k on sale (before costs). Your gain is $140k instead of $200k.
Annual growth required for HTB to beat saving for a normal deposit depends on how long you hold and what return your alternative-use deposit could earn. Roughly: at <3% p.a. growth, HTB's upfront benefit dominates. At >6% p.a. growth, you'd have been better off waiting and saving a 20% deposit. Most reasonable scenarios fall in the middle and HTB pays off — but the "free money" framing is wrong.
Renovation requires Govt approval
Material renovations (anything over 10% of property value) need Government sign-off because they affect the equity share. Cosmetic works are fine. Extensions, knock-down-rebuild, or duplex development are not — those count as material changes and require either approval or a buy-out of the Government share first.
You can't rent it out
The owner-occupier rule is enforced. Moving overseas for work and renting out your HTB property triggers a forced buy-out of the Government share within 12 months. If you might relocate within 5 years, HTB is the wrong scheme.
If your income grows past the cap, you must buy out
If your single income exceeds $90k for two consecutive years (or couple's combined exceeds $120k), the Government may require you to buy out their share. In practice this is rarely enforced immediately, but it's in the contract. Anyone on a steep income trajectory should plan for a buy-out within 3–5 years.
Help to Buy vs. other FHB schemes
- vs FHB Loan Deposit Scheme (now Home Guarantee): That scheme gives you 5% deposit + Government guarantee replacing LMI, but you take the full loan. HTB takes a smaller loan via the equity share. HTB is cheaper monthly; Home Guarantee preserves full capital gain. They are mutually exclusive.
- vs state FHB grants: You can stack HTB with state grants (e.g. $10k VIC FHOG) and stamp duty concessions. This is the combination that makes the math best — HTB lowers loan size, state concessions zero out duty, FHOG covers some of the upfront.
- vs FHSS (First Home Super Saver): FHSS lets you save up to $50k deposit inside super at concessional tax rates. It stacks with HTB. Use FHSS for the deposit, HTB for the equity structure.
How to apply
Applications go through the Government's panel of participating lenders (most major banks plus some non-bank panel members like Bendigo, Bank Australia, ME Bank). Process:
- Step 1: Pre-approval with a participating lender (~1–2 weeks)
- Step 2: HTB place reservation (Housing Australia confirms place is available — places open and close based on the 10k annual cap)
- Step 3: Property search within state cap
- Step 4: Standard purchase with HTB-specific contract clauses
- Step 5: Settlement — Government equity registered against the title
Total timeline: 8–14 weeks from pre-approval to settlement. About 2–4 weeks longer than a standard FHB purchase due to the additional HTB documentation.
Should you use it?
Yes if: you have under $50k saved, your household income is comfortably under the cap, you plan to live in the property for at least 5 years, and you're buying in a postcode where the cap actually accommodates a quality property (most of Brisbane, most of regional Australia, parts of outer Sydney/Melbourne).
No if: your income will likely exceed the cap within 3 years, you might rent the property out, you want to materially renovate, or you're trying to buy in inner-city Sydney/Melbourne where the cap forces compromises on quality.
Check your specific postcode's eligibility, median property price within the cap, FHB grant stacking, and stamp duty exemption in a single PropPulse report — free signup unlocks one full report. Or compare the top FHB-friendly postcodes nationally in our state-by-state FHB guide.