For many first home buyers across Geelong, the Bellarine Peninsula, the Surf Coast and Melbourne, the deposit hurdle is the single biggest thing standing between renting and owning. The federal government’s Help to Buy scheme is designed to lower that hurdle by taking an ownership share in your home alongside you, and from 1 July 2026 it became available to more people than ever. In this guide we explain what changed, how shared equity actually works, and what Victorian buyers should weigh up before applying.
Help to Buy is not the same as a grant: the government does not give you money to keep. Instead it co-purchases the property with you and holds a percentage share, which you can buy back over time or repay when you sell. Understanding that distinction is the key to deciding whether the scheme suits your situation.
The 1 July 2026 expansion made two headline changes. First, an additional 10,000 places were released for the 2026-27 financial year, giving more households a chance to secure a spot in a scheme where demand has consistently run ahead of supply. Since the scheme opened, thousands of applications have already been processed, so the extra capacity is meaningful rather than symbolic.
Second, the income eligibility caps were increased and are now indexed to wage growth, so they rise automatically each year rather than staying frozen. As a guide, singles can earn up to around $100,000 to $103,000, and couples and single parents up to around $160,000 to $165,000. Because these thresholds are indexed and periodically updated, the exact current figure matters: always confirm it with Housing Australia or your broker before you apply, rather than relying on an older number you may have seen quoted.
were added for the 2026-27 financial year, but the scheme is capped and allocated on a limited basis: getting your finances ready early is the single biggest thing you can control.
Under Help to Buy, three parties combine to purchase your home: your deposit, your home loan, and the government’s equity contribution. The government contributes up to 40% of the purchase price for a new home, or up to 30% for an existing home. You provide a minimum deposit of 2%, and a lender funds the remainder through a standard mortgage.
Because the government’s share reduces the amount you actually need to borrow, your loan is smaller and your repayments are lower than they would be on a conventional purchase. In many cases the smaller loan also means you can avoid Lenders Mortgage Insurance (LMI), which can save you thousands of dollars up front. You do not pay rent or interest on the government’s share while you hold the property.
When you eventually sell, the government receives its percentage share of the sale price: so if the property has grown in value, the government shares in that growth in proportion to its stake. You can also make voluntary payments to buy back the government’s share over time, increasing your ownership as your circumstances improve. This is the trade-off at the heart of shared equity: a much easier entry into the market in exchange for sharing some of the future capital growth.
| Feature | Help to Buy (Shared Equity) | Standard Low-Deposit Loan |
|---|---|---|
| Minimum deposit | From 2% | Typically 5%-20% |
| Amount you borrow | Reduced by the government’s share | Full price less your deposit |
| LMI | Often avoided | Usually payable under 20% deposit |
| Who owns the home | You and the government (shared) | You alone |
| Capital growth | Shared in proportion to stakes | All yours |
| Income limits | Yes: indexed caps apply | Set by the lender’s serviceability test |
Beyond the income caps, Help to Buy applicants generally need to be Australian citizens aged 18 or over, must intend to live in the home (it is for owner-occupiers, not investors), and must not already own property in Australia or overseas. You also need to be able to service the loan portion and cover the usual purchase costs such as stamp duty, conveyancing and inspections.
Each state and region has a property price cap, and these caps were not changed in the 1 July 2026 expansion. In Victoria, Geelong is generally treated as a major regional centre with a cap aligned to Melbourne’s, while lower caps apply across the rest of regional Victoria. Because the exact cap figures are set by government and can be updated, you should confirm the current cap for your specific suburb before you start making offers: a property just over the cap will not qualify, so this is a detail worth getting right early. Buyers in Geelong, Ocean Grove, Torquay, Armstrong Creek and the wider Bellarine Peninsula should factor this in when shortlisting properties.
Sophie, a single teacher renting in Belmont, had saved a modest deposit but was priced out of buying near her school on her own. She was interested in Help to Buy but unsure whether her income sat inside the caps and whether the townhouse she liked fell under the price cap for Geelong. We modelled her borrowing capacity on the reduced loan amount, confirmed her income was within the current threshold, and checked the property against the applicable cap before she made an offer. Because the government took an equity share, her loan was smaller, her repayments were manageable on a single income, and she avoided LMI. The key was getting the numbers confirmed before she committed, not after.
Shared equity is a genuine opportunity, but it is not automatically the right choice for everyone. The main consideration is that you share future capital growth with the government in proportion to its stake, so in a rising market you give up some of the gain you would have kept on a standard purchase. For many buyers, owning sooner and building equity is worth that trade-off, but it is a decision worth modelling properly.
There are also ongoing eligibility conditions. If your income exceeds the caps for a sustained period after you buy, you may be required to start buying back the government’s share. You will need to keep the home as your residence, and there are rules around renovations and refinancing that your broker can walk you through. Reading the scheme’s participant guidelines carefully (and getting pre-approval on the loan portion) will save you surprises later.
Because places are limited and demand is high, the buyers who succeed are usually the ones who are finance-ready before they find a property. Get your loan portion pre-approved, confirm your income sits within the current caps, and have your target suburb’s price cap checked in advance. If shared equity turns out not to suit you, it is worth comparing it against other options such as a standard low-deposit loan: our Rent vs Buy Calculator and a quick chat can help you see the difference in real dollars.
You do not make repayments on the government’s equity share while you own the home, and you pay no rent or interest on it. When you sell, the government receives its percentage share of the sale price. You can also choose to buy back the government’s share over time in voluntary instalments, which increases your ownership. Because the government shares in capital growth, the dollar amount it eventually receives depends on how much the property has grown in value.
The caps were lifted from 1 July 2026 and are now indexed to wages, so they increase each year. As a guide, singles can earn up to around $100,000 to $103,000 and couples and single parents up to around $160,000 to $165,000. Because the thresholds are updated periodically, always confirm the exact current figure with Housing Australia or your broker before applying rather than relying on a number quoted earlier in the year.
Yes. Help to Buy is a national scheme available to eligible buyers across Victoria, including Geelong, the Bellarine Peninsula, the Surf Coast, Melbourne and regional centres. The key local factor is the property price cap for your area: Geelong is generally treated as a major regional centre. Confirm the current cap for the specific suburb you are looking at before you make an offer, because a property priced above the cap will not qualify.
Often not. Because the government’s equity contribution reduces the amount you borrow, many Help to Buy loans fall below the threshold where LMI usually applies, which can save thousands up front. Whether LMI is payable depends on your final loan-to-value ratio, so it is worth having your broker calculate it as part of comparing Help to Buy against a standard low-deposit loan.
We’ll confirm your eligibility, check your suburb’s price cap, and model Help to Buy against your other options: free and with no obligation.
With years of experience in mortgage broking and finance, Melanie helps first home buyers and families across Geelong, the Bellarine, the Surf Coast, Melbourne and regional Victoria navigate schemes like Help to Buy and structure the right loan. Contact our team on 03 9020 2699.
