Owning a home has always been the great Australian dream, but for many, it’s felt increasingly out of reach – however, a new government scheme could change that.

The Australian Federal Government’s Help to Buy Scheme is set to reshape the property landscape for low- and middle-income earners. Recently passed into law in parliament, this scheme aims to make home ownership a reality for thousands of Australians who’ve struggled to get a foothold on the property ladder.

Here’s everything you need to know about how it works, who’s eligible, and why it might be your key to homeownership.

What is the Australian Government Help to Buy Scheme?

Think of it as a team effort: you, your lender, and the federal government working together to buy your home.

Under the scheme, the government will pitch in with up to 40% of the price of a new home or 30% of an existing home, giving buyers a huge boost to reduce their mortgage burden. In return, the government owns a stake in your property—but you don’t pay rent on their share, so your monthly costs are still significantly lower.

How does the Help to Buy Scheme work?

• Your Part: You’ll need at least a 2% deposit and a mortgage for your share of the property.
• The Government’s Part: The government will cover their share of the property’s value, based on whether it’s a new or existing home.
• The Catch: When you sell, the government takes a slice of any profit, based on their equity share.

The scheme will be administered by Housing Australia on behalf of the Commonwealth and mortgages must be taken out with approved lenders on Housing Australia’s list. Eligible properties include houses, townhouses and units are all eligible, however, they must fall within the price caps set for each state and region (see below). Participants must also adhere to specific terms, such as living in the property and maintaining an income below certain thresholds.

For example, you buy a $500,000 home with a 30% government share. If the property sells for $600,000, the government will be entitled to $180,000 (30% of the sale price).

Who can apply for the Help to Buy Scheme?

The program is designed for low- and middle-income Australians who meet these criteria:

• Australian citizen aged 18 or older.
• Have an income of less than $90,000 (or $120,000 combined for joint buyers).
• You must not currently own property, either in Australia or overseas.
• You need to live in the property you’re buying (no renting it out).
• Good news: even if you’ve owned property before, you can still qualify if you don’t currently own any land or housing.

How much can you save by using the Help to Buy Scheme?

The Help to Buy Scheme isn’t just about getting you through the door—it’s about making homeownership more affordable in the long term.

By cutting the size of your mortgage, the scheme could save you hundreds of dollars each month. Depending on the property price, you could potentially reduce your mortgage by up to $380,000.

Where can you buy under the Help to Buy Scheme?

There’s a limit on the value of homes eligible for the scheme, and these caps vary depending on where you’re buying.

State	Property Price Cap
	Capital and regional centres	The rest of the state/territory
Australian Capital Territory	$750,000	$600,000
New South Wales	$950,000	$750,000
Northern Territory	$600,000	$550,000
Queensland	$700,000	$550,000
South Australia	$600,000	$450,000
Tasmania	$600,000	$450,000
Victoria	$850,000	$650,000
Western Australia	$600,000	$450,000

These limits reflect the median house prices in each region, so while they may restrict your options, they still give access to a decent slice of the market—especially if you’re looking at purchasing a unit or in an area like Brisbane.

Why is the Help to Buy Scheme such a big deal?

For many Australians, saving for a deposit or keeping up with rising property prices has made homeownership feel impossible. The Help to Buy Scheme changes the game by:

• Reducing upfront costs: With only a 2% deposit needed, you don’t need to spend years saving.
• Lower monthly repayments: Thanks to the government’s share, your mortgage will be smaller.
• Opening the door for more buyers: Even those on modest incomes have a shot at owning a home.

What do you need to watch out for?

While the scheme is promising, it’s not without its fine print. Here are some key points to keep in mind:

• Limited spots: Only 40,000 places are available over four years, so it’s first-come, first-served.
• Capital gains: If your property increases in value, the government will take their share of the profits.
• Reassessments: The government reviews the arrangement annually and can adjust their share if your property value or income changes. If the government ends its arrangement with you, you will only have 90 days to pay back their share of the property.
• No double dipping: The scheme isn’t available if you’re already part of a similar state-run program, so compare your options carefully.
• Off-Plan Limits: If you make an off-plan purchase, the build must be completed within 24 months of you signing the contract.

Plus more, meaning it’s important to read the fine print before diving into this scheme.

When does the Help to Buy Scheme start?

The program is already live in the Northern Territory and Australian Capital Territory, but other states need to pass legislation to enable it. Keep an eye on announcements for when it could be available for you.

Is the Help to Buy Scheme right for me?

The Help to Buy Scheme could be a game-changer for those struggling to break into the housing market. It offers a much-needed leg up with lower costs, but it’s important to weigh the pros and cons.

For many, the chance to own a home—without years of saving for a deposit—is worth the trade-off of sharing equity with the government. If you’re eligible and ready to buy, this scheme might just turn your dream of homeownership into reality – but it’s important to start by checking your eligibility and preparing for the application process, as well as weighing up all of your different options.

At Sanford Finance, we’re here to help make your home ownership dreams a reality – and that includes looking at all of the different grants and schemes available to you and determining which route aligns best with your financial goals. Who knows, with a bit of government support, that front door key could be closer than you think!