Shared equity scheme
Help to Buy: the government buys in with you.
Up to 40% of your home, contributed by the Federal Government. A 2% deposit, no Lenders Mortgage Insurance, and a much smaller loan. Here's exactly how it works — including the catch.
How it works
Four steps, start to finish.
01
You buy with a 2% deposit
You contribute a minimum 2% deposit of the property price — far less than a conventional purchase requires.
02
The government takes an equity share
Housing Australia contributes up to 40% of the price for a new home, or up to 30% for an existing one, and holds that share on the title.
03
You borrow only your portion
Your loan covers the rest. Because the government owns a slice, your mortgage is dramatically smaller — and you pay no Lenders Mortgage Insurance.
04
You can buy the share back
Over time you can purchase additional equity from the government in instalments, reducing their share until you own the property outright.
What it looks like
A smaller loan changes everything.
On an $700,000 existing home with a 30% government share, you're borrowing against your portion — not the whole price.
$14,000
Your 2% deposit
Instead of $140,000 for a conventional 20%.
$210,000
Government share
30% of an existing home, held on title.
$0
LMI payable
No premium, no capitalised insurance cost.
Illustrative example only, excluding stamp duty, legal and lender fees. Caps, thresholds and the available share depend on the property and your circumstances.
The honest version
What you gain, and what you give up.
Help to Buy is genuinely good for the right buyer and genuinely wrong for others. Here's both sides, plainly.
What you gain
- A 2% deposit instead of 20% — years earlier into the market
- No Lenders Mortgage Insurance, saving tens of thousands
- A much smaller loan, so materially lower monthly repayments
- The ability to buy the government's share back over time
- You live in the home as a normal owner-occupier throughout
What you give up
- The government shares proportionally in any capital gain when you sell
- Income and property price caps apply, and places are limited each year
- It's for owner-occupiers only — you can't rent the property out
- You must not own other property, in Australia or overseas
- Not every lender participates, which narrows your rate options
Help to Buy FAQ
The detail people want.
Who is eligible for Help to Buy?
Broadly: Australian citizens aged 18 or over who will live in the home, don't currently own property anywhere, and fall under the income caps — $103,000 for an individual and $165,000 for a couple. The property also has to sit under the price cap for its region, and you need the minimum 2% deposit.
Final eligibility is assessed by Housing Australia, not by us. What we can do is tell you quickly and honestly whether it's worth your time applying.
Is it only for first home buyers?
No, and this surprises people. Help to Buy is open to anyone who doesn't currently own property and meets the other criteria. If you owned a home previously but don't now — after a relationship breakdown, for instance, or a period overseas — you may still qualify.
What happens when I sell?
The government receives its share of the sale proceeds, proportional to the equity it holds. If it contributed 30% and the property has doubled, it receives 30% of the higher value. You keep the rest, including your share of the growth. That's the central trade: you give up some future upside in exchange for getting in now, with a smaller loan and no LMI.
Can I buy the government out?
Yes. You can make additional equity purchases over time in minimum instalments, based on the property's value at the time you buy each tranche. Many people plan to do this as their income grows. Note that buying back a share after strong price growth costs more than the government originally contributed.
How does it compare to the Home Guarantee Scheme?
They solve the same problem differently. The Home Guarantee Scheme needs a 5% deposit, removes LMI via a government guarantee, and you own 100% of the property and all of its growth — but you borrow the full remaining amount, so repayments are higher. Help to Buy needs only 2%, cuts the loan dramatically, but hands the government a share of the gain. Lower repayments and an earlier start, against keeping all the upside. We'll run both against your numbers.
Which lenders offer Help to Buy?
A limited panel of participating lenders, and the list changes. This is the trap buyers walk into most often — choosing a bank first, then discovering it doesn't participate in the scheme they qualify for. We check participation before you get attached to a lender.
An important note. Help to Buy is a Federal Government scheme administered by Housing Australia. Assist Loans is not affiliated with, endorsed by, or connected to Housing Australia or any government body. Everything on this page is general information — your eligibility, the available equity share and the applicable price caps are determined by Housing Australia and your lender. Talk to us and we'll tell you honestly whether it's worth pursuing.
Is Help to Buy right for you?
It suits some buyers brilliantly and others not at all. Fifteen minutes and we'll give you a straight answer — including when the alternative is the better deal.