By Chaice Paterson, CEO & Founder, Low Deposit Homes | Updated June 2026

Help to Buy is the Federal Government’s shared equity scheme — and for the right buyers, it’s the most powerful first home buyer program ever introduced in Australia. Under Help to Buy in 2026, the government takes up to 40% ownership of a new build, reducing your loan to as little as 58% of the property value and dropping your weekly mortgage repayments to roughly the cost of renting. On a $1,000,000 new build, your deposit can be as low as $20,000. But Help to Buy isn’t right for everyone — it has strict rules around renting out, income caps, and citizenship that have caught some Low Deposit Homes clients off-guard. This article explains exactly how it works, who it suits, and the real catches.

What Is Help to Buy?

Help to Buy is a Federal Government shared equity scheme administered by Housing Australia. The government effectively co-purchases the property with you:

• You contribute: A 2% deposit plus the remaining loan
• The government contributes: Up to 40% equity on a new build (or 30% on an established home)
• You own: The remaining 58–68% outright
• Your loan: Only the portion you own, not the full property value

The scheme launched nationally in 2025 and is one of the most significant first home buyer programs in Australian history.

For the official source, see the Housing Australia Help to Buy page.

How Does Help to Buy Actually Work? A Real Example

For a $1,000,000 new build with maximum government equity (40%):

That weekly repayment of around $750–$800 is comparable to renting a similar property in many Brisbane and Melbourne suburbs. For a couple paying $700–$900/week in rent, Help to Buy can mean owning a brand-new home for less than they’re currently spending on a rental.

Who Qualifies for Help to Buy?

To qualify in 2026 you need to:

• Be an Australian citizen aged 18+ (note: permanent residency is NOT enough — this is different from the 5% Deposit Scheme)
• Be a genuine first home buyer
• Meet income limits: single applicants under $100,000, couples under $160,000 combined, single parents with a dependent child also under $160,000 (treated under the couple bracket)
• Have at least 2% deposit (genuine savings)
• Purchase within the price cap for your area
• Intend to live in the property as principal residence

The income caps are firm — even $1 over the threshold disqualifies the application.

What Are the Help to Buy Property Caps?

• Brisbane and major regional QLD centres: $1,000,000
• Other QLD regional: $700,000
• Melbourne and Geelong: $950,000
• Other VIC regional: $650,000

What Are the Catches with Help to Buy?

Help to Buy is genuinely powerful, but the constraints matter:

You cannot rent the property out. Help to Buy requires the property to remain your principal place of residence — even temporarily, even partially. This caught one of our recent clients off-guard: he was a defence force member who received a posting to a different city after Help to Buy approval. Because he couldn’t live in the property and the scheme prohibits renting it out, he had to withdraw entirely. Always understand the live-in requirement before committing.

You share future capital growth with the government. If your home appreciates, the government’s 40% share appreciates too. When you eventually sell or buy out the government’s share, you repay the original capital plus 40% of any capital growth. For most buyers this trade-off is acceptable — you’re getting into a home 5+ years earlier than you otherwise could — but it’s worth understanding.

Citizenship requirement excludes permanent residents. The 5% Deposit Scheme accepts permanent residents. Help to Buy doesn’t. If you’re a PR holder, the 5% scheme is typically your path.

Income caps apply to household income, not individual. A couple with a $90K and an $80K income has $170K combined — over the cap. Some couples apply solo on a single income if serviceability works.

“Help to Buy is brilliant for the right buyer — the income-constrained couple in Pakenham who can own a brand-new home for the same weekly cost as renting. It’s the wrong scheme for someone whose job might require relocation, or someone above the income caps, or someone who wants to eventually convert to an investment. We assess that on every discovery call.” — Chaice Paterson, founder of Low Deposit Homes

Help to Buy vs the 5% Deposit Scheme: Which One?

You can’t use both — you pick one. The decision typically comes down to:

Choose 5% Scheme if: You earn above Help to Buy caps, you want full ownership, or you may convert to investment later.

Choose Help to Buy if: You’re income-constrained, prioritising weekly affordability, and committed to long-term residence.

What Happens When I Sell?

When you sell, the government receives their equity share at the current property value. So if you bought for $1M with 40% government equity ($400K) and the property is worth $1.3M when you sell, the government receives 40% of $1.3M = $520K. You retain the remaining $780K minus your loan balance and selling costs.

You can also buy out the government’s share gradually — in 5% increments — at the current property valuation. Most participants do this as their income grows over time.

Frequently Asked Questions

Can I renovate the property if I’m using Help to Buy?

You can do standard maintenance and minor renovations without Housing Australia approval. Major renovations that increase property value substantially may require approval. The scheme isn’t designed to constrain you on cosmetic changes, but structural changes or extensions need to go through the process. Most clients aren’t doing major renovations on a brand-new build anyway.

What happens when I sell a Help to Buy property?

The government’s equity share is settled from the sale proceeds at the property’s current value. If the property has appreciated, the government’s share is worth more than their initial contribution; if it’s depreciated, less. You retain the remainder of the proceeds minus your loan balance and selling costs.

Can I buy out the government’s share later?

Yes. You can purchase additional equity from the government over time in 5% increments at the current property valuation. Many Help to Buy participants buy out the government’s share gradually as their income grows. Once you reach 80% ownership, you can typically buy out the remaining 20% in one transaction.

Is Help to Buy better than the 5% Deposit Scheme?

It depends on your situation. Help to Buy is better for income-constrained buyers prioritising weekly affordability and long-term residence. The 5% Deposit Scheme is better for higher-income buyers who want full ownership and may convert to investment. We compare both on the discovery call to see which delivers the better outcome.

Can a renter use Help to Buy?

Yes — Help to Buy is specifically designed for renters who can’t save a 20% deposit. The 2% deposit requirement is dramatically lower than traditional financing. The scheme is currently one of the most accessible paths from renting to ownership available in Australia.

Ready to See If Help to Buy Suits You?

Book a free 15-minute consultation with Low Deposit Homes — Book your free call | Call 1800 920 172

We’ll compare Help to Buy against the 5% Deposit Scheme on YOUR numbers. The right scheme depends entirely on your income, savings, and goals — and getting this decision right is the difference between a deal that suits your situation and one that doesn’t.

Low Deposit Homes operates under Winning Homes Australia Pty Ltd (ACN 633 321 758). All deposit calculations are indicative and based on general scenarios. Individual circumstances may vary. Government grant eligibility is subject to assessment by the relevant authority. This guide is for informational purposes and does not constitute financial advice.