Help to Buy Scheme 2026: Current Thresholds, Lenders and Application Steps

Short answer

Help to Buy is an Australian Government shared equity scheme. An eligible buyer contributes a minimum 2% deposit, obtains a home loan through a participating lender, and the government can contribute up to 40% of the price of a new home or 30% of an existing home.

The government receives an equity share rather than interest on its contribution. Its dollar value can rise or fall with the property's value.

For 2026-27, the published taxable-income thresholds are $103,000 for a single applicant and $165,000 for joint applicants, single parents and single legal guardians. These limits took effect on 1 July 2026.

Use the Property Purchase Cost Calculator to estimate transaction costs separately from the government contribution. Use the Borrowing Power Calculator only as a general scenario, not an eligibility or lender decision.

Key settings for 2026-27

Property price caps also apply and vary by location. Check the official postcode and property-cap tool before signing a contract.

What shared equity means

The government contribution is not a cash grant and is not a conventional loan charging interest.

Suppose a buyer purchases an $800,000 existing home and receives the maximum 30% government contribution. The equity contribution would be $240,000. With a 2% deposit of $16,000, the home loan would be about $544,000 before transaction costs.

If the home were later valued or sold for $1,000,000 while the government still held a 30% share, that share would be worth $300,000. If the value fell, the government's share would generally fall proportionally, subject to the scheme rules and any approved adjustments.

This example does not show what contribution will be approved. The participating lender and Housing Australia assess the application, property, available savings and current rules.

Current participating lenders

The official lender page lists:

• Bank Australia;
• Commonwealth Bank;
• Teachers Mutual Bank;
• Health Professionals Bank;
• Firefighters Mutual Bank; and
• UniBank.

The last four are brands within Teachers Mutual Bank Limited. The lender panel can change, so check the official list before applying.

How the application process works

1. Check the current income, citizenship, ownership, occupancy and property rules.
2. Contact a participating lender or a mortgage broker who can work with one.
3. The lender assesses the home loan, financial capacity and initial scheme application.
4. If conditional approval is issued, the applicant generally has up to 90 days to find a property and sign a contract. An extension may be available in some cases.
5. The lender completes its property and credit checks and submits the final application information to Housing Australia.
6. Housing Australia can issue final approval before settlement.

Applications cannot be submitted directly to Housing Australia. A conditional approval or reserved place is not final home-loan approval and does not guarantee settlement.

Deposit and purchase costs

The 2% figure is a minimum deposit, not a complete cash budget.

Buyers may also need money for:

• transfer duty after any state concession;
• conveyancing or legal work;
• building, pest or strata reports;
• transfer and mortgage registration;
• lender or valuation fees;
• insurance, moving and utility connections; and
• a cash buffer after settlement.

The official FAQ says applicants must generally contribute as much as they can reasonably afford, although they are encouraged to retain a reasonable amount for emergencies and property costs.

New and established homes

A new home can receive a government contribution of up to 40%. The official FAQ includes certain off-the-plan properties, homes yet to be built and newly constructed homes that have never been lived in, rented or previously sold.

Timing matters. Off-the-plan properties with long construction periods and unregistered land may not fit the scheme's approval and settlement windows. Ask the participating lender before signing a contract.

An existing home can receive a contribution of up to 30%, subject to the same need for a lender-approved loan, scheme approval and the applicable property cap.

Ongoing obligations

While the government holds an equity share, the home generally needs to remain the participant's principal place of residence. The participant must maintain the property, keep required insurance and meet rates and other ownership costs.

Major changes such as selling, refinancing, renting out the property or significant renovations can require notice or approval. Housing Australia also conducts periodic reviews. Read the participation agreement and current general terms before committing.

Help to Buy compared with the 5% Deposit Scheme

Help to Buy reduces the size of the home loan by taking an equity share. The Australian Government 5% Deposit Scheme uses a lender guarantee so an eligible buyer can avoid LMI while retaining the full ownership interest and carrying a larger loan.

The Help to Buy versus 5% Deposit Scheme guide compares the structures. The schemes cannot simply be combined. Official guidance says Help to Buy can be used with specified grants, duty concessions and the First Home Super Saver Scheme, but not with other government shared-equity schemes, purchase loans or guarantees.

Common mistakes

• Treating an online eligibility tool as an official decision.
• Assuming a 2% deposit covers transaction costs.
• Confusing conditional approval with final approval.
• Using last financial year's income thresholds.
• Relying on an old two-lender list.
• Assuming every off-the-plan contract fits the settlement timetable.
• Forgetting that the government's share changes with the property's value.

The Help to Buy uptake update explains why active applications, approvals and settlements should keep separate labels.

Sources

• First Home Buyers: Help to Buy income and threshold updates 2026-27, effective 1 July 2026.
• First Home Buyers: Help to Buy frequently asked questions, checked 1 September 2026.
• First Home Buyers: participating lenders, checked 1 September 2026.
• Treasury: Housing Australia Capability Assessment Report, published 30 August 2026.

General information disclaimer

This guide provides general information only. It is not financial advice, credit advice, legal advice, an eligibility decision, a home-loan approval or an official Housing Australia determination. Scheme settings, property caps and lender panels can change. Check the current official information and speak with a participating lender before relying on the guide.

Last updated: 1 September 2026.