Can’t Afford a Home? Help to Buy Could Be Your Answer

The Help to Buy scheme is an Australian Government initiative aimed at helping first-time homebuyers and low-to-middle-income earners enter the property market with lower financial barriers. Through this scheme, the government contributes a portion of the home's purchase price, allowing buyers to secure their property with a smaller deposit and lower mortgage repayments.

How Does the Help to Buy Scheme Work?

The government provides a shared equity arrangement, contributing up to 40% of the purchase price for new homes and 30% for existing homes. This significantly reduces the amount buyers need to borrow from lenders, enabling them to secure a home with a deposit as low as 2%. This also means no need for lenders mortgage insurance (LMI), which can cost thousands of dollars.

Eligibility Criteria
To participate in the scheme, buyers must meet specific requirements:

• Income Limits: For singles, the annual income must be no more than $100,000 and for couples, no more than $160,000 (theguardian.com).
• Property Price Caps: The home must fall within the designated price caps for the area, which vary by location.
•  Primary Residency: The property must be the buyer's primary residence, not an investment property.

Recent Updates
In the 2025 federal budget, the government allocated an additional $800 million to expand the Help to Buy scheme, helping 40,000 Australians purchase homes in the next four years (9news.com.au).

Key Benefits
By offering lower deposits and reducing monthly repayments, the scheme provides a pathway for many Australians to become homeowners sooner, without the financial burden of large down payments or LMI. However, the government retains a stake in the property until the buyer purchases back its share (housing.qld.gov.au).

References:

• 9news. (2025). Federal Budget 2025: Government Expands Help to Buy Scheme.
• Mortgage Choice. (n.d.). Help to Buy Scheme.
• Queensland Housing. (n.d.). Help to Buy Scheme.
• The Guardian. (2025). Changes in Help to Buy Housing Scheme Will Make Most First Home Buyers Eligible, Labor Says.
• UNO Home Loans. (n.d.). Help to Buy Scheme.
• Your Mortgage. (n.d.). Help to Buy Scheme.