Help to Buy Scheme 2026: How It Works, Eligibility & How to Apply

Overview

The Australian Government's Help to Buy scheme officially launched on 5 December 2025, providing a new pathway for eligible Australians to purchase their first home with a deposit as low as 2%. Here is everything you need to know about the scheme as it operates in 2026.

How Help to Buy Works

Under the scheme, the government contributes up to 40% of the purchase price for a new home or 30% for an existing home, in exchange for an equivalent equity share in the property. This means the buyer needs a much smaller mortgage and deposit.

For example, on a $500,000 new home:

• Government contribution (40%): $200,000
• Buyer's mortgage: $290,000 (with 2% deposit of $10,000)
• Result: smaller loan, lower repayments, no LMI

The buyer owns and lives in the property. The government's equity share is repaid when the property is sold, or the buyer can voluntarily buy back the government's share over time.

Eligibility Requirements

• Income limits: $100,000 per year for individuals, $160,000 for couples and single parents
• Citizenship: Must be an Australian citizen aged 18 or over
• First home buyer: Cannot currently own property in Australia or overseas
• Residence: Must live in the property as your principal place of residence
• Minimum deposit: 2% of the purchase price

Property price caps apply and vary by location — check the First Home Buyers website for current caps in your area.

Where Is It Available?

As of early 2026, the scheme is available in:

• Queensland, Victoria, New South Wales, South Australia, ACT, and Northern Territory (from launch)
• Western Australia (expected early-to-mid 2026)
• Tasmania (pending state legislation)

Participating Lenders

The scheme launched with Commonwealth Bank of Australia and Bank Australia as approved lenders. Housing Australia is expanding the lender panel throughout 2026.

How Many Places Are Available?

There are 10,000 Help to Buy places available each year, with the scheme running for four years. As of early 2026, more than 2,300 places had been approved, with 278 households having already purchased homes under the scheme.

How to Apply

1. Check your eligibility on the First Home Buyers website
2. Get pre-approved through a participating lender (CBA or Bank Australia)
3. Find a property within the price caps for your area
4. Apply for Help to Buy as part of your home loan application
5. Settlement proceeds with the government equity share registered on the title

How Does This Compare to Other Programs?

Help to Buy is separate from — and can potentially be used alongside — state-based programs like the First Home Owner Grant and stamp duty concessions. Check our First Home Buyer Guide for the full picture of available assistance.

Use our Borrowing Power Calculator to see how a smaller loan under Help to Buy affects your borrowing capacity, and our Property Purchase Cost Calculator to estimate your total upfront costs.

Estimate your costs: Property Purchase Cost Calculator | Check borrowing power: Borrowing Power Calculator.

Sources: Housing Australia, First Home Buyers website (firsthomebuyers.gov.au), CBA Newsroom.