Key Takeaways
- The government co-purchases your home — contributing up to 40% for new builds, 30% for existing properties
- You only need a 2% deposit to qualify
- Income caps are $90,000 for singles and $120,000 for couples
- No rent or interest is charged on the government's equity share
- You can buy out the government's share at any time
- 10,000 places are available nationally per year
- Must be an Australian citizen and intend to live in the property
Australia's Help to Buy scheme is one of the most significant home buyer assistance programs introduced in years. Unlike previous schemes that simply guaranteed part of your deposit, Help to Buy has the federal government actually co-purchase your home alongside you — dramatically reducing the loan you need and the deposit required.
For buyers in Torquay, Geelong, and across the Surf Coast who've been locked out by rising property prices, this scheme could be the difference between renting indefinitely and owning a home. Here's everything you need to know.
What is Help to Buy?
Help to Buy is a federal government shared equity scheme where Housing Australia co-purchases a home with you. The government takes an equity share in your property — up to 40% for new builds or 30% for existing homes — which reduces the size of the mortgage you need to take out.
Critically, you still own your home. The government holds a proportional equity interest, not a right to live in or control the property. You pay no rent, no interest, and no ongoing fees on the government's share. When you sell, refinance, or choose to buy out the government's equity, you pay back their proportional share at current market value.
Simply put: Instead of borrowing 95% of a $700,000 property ($665,000), Help to Buy could mean the government contributes 30% ($210,000) and you borrow just 68% ($476,000) — with only a 2% deposit. Your repayments and interest costs are dramatically reduced.
How the Numbers Work: A Real Example
Buying a $700,000 Existing Property in Geelong
That's over $13,900 per year in reduced repayments — plus you avoid Lenders Mortgage Insurance (LMI), which on a 95% LVR loan would add another $20,000–$30,000 to your costs.
Who is Eligible?
Citizenship
Must be an Australian citizen aged 18 or over. Permanent residents are not eligible.
Income Limits
Taxable income must be under $90,000 for singles or $120,000 for couples and joint purchasers.
Property Ownership
Must not currently own or have a share in any residential property in Australia or overseas.
Minimum Deposit
Must have saved at least 2% of the purchase price as genuine savings.
Owner-Occupier
Must intend to live in the property as your principal place of residence. Investment purchases are not eligible.
Loan Type
Must be a standard principal and interest loan. Interest-only loans are not eligible under the scheme.
Important: Places Are Limited
Only 10,000 Help to Buy places are available nationally per financial year. Places are allocated on a first-come, first-served basis through participating lenders. Given strong demand, places are expected to fill quickly — getting pre-approved and ready to move is essential.
Property Price Caps in Victoria
To be eligible under Help to Buy, the property must be within the government's price caps. In Victoria, the caps are:
- Metropolitan Melbourne and inner regional areas: $950,000
- Other regional Victoria: $700,000
Whether Torquay, Geelong, and Surf Coast locations fall under the metropolitan or regional cap depends on the ABS classification of that area. Given property values in parts of the Surf Coast, buyers should confirm the applicable cap for their target suburb with us before proceeding. Some coastal suburbs may have property prices that exceed the cap, which would exclude them from the scheme.
Surf Coast and Geelong Buyers: Check Your Suburb
Property prices in Torquay and Jan Juc can exceed $950,000, which would make those specific properties ineligible regardless of your personal eligibility. The scheme works best for buyers targeting the Geelong suburbs, Bellarine Peninsula, and Surf Coast hinterland where prices more commonly fall within the cap. Contact us to assess your specific situation.
Help to Buy vs Other First Home Buyer Schemes
| Scheme | How it Works | Min Deposit | Income Cap | Places/Year |
|---|---|---|---|---|
| Help to Buy | Govt co-purchases up to 40% of your home | 2% | $90k / $120k | 10,000 |
| First Home Guarantee | Govt guarantees 15% so you avoid LMI with 5% deposit | 5% | $125k / $200k | 35,000 |
| Family Home Guarantee | Single parents buy with 2% deposit, no LMI | 2% | $125k | 5,000 |
| First Home Owner Grant (VIC) | $10,000 cash grant for new builds only | No min | None | Unlimited |
| Stamp Duty Exemption (VIC) | Full exemption on purchases up to $600k; concession to $750k | No min | None | Unlimited |
These schemes are not always mutually exclusive. For example, you may be able to combine Help to Buy with the First Home Owner Grant on a new build, or access stamp duty exemptions alongside the scheme. A mortgage broker can map out exactly which combination of schemes you qualify for.
What Happens to the Government's Share?
While You Own the Property
You own and occupy the home as normal. You are responsible for all maintenance, rates, insurance, and body corporate fees (if applicable). The government does not charge rent, interest, or fees on their equity share while you hold it.
Buying Out the Government's Share
You can voluntarily purchase the government's equity share at any time — either in full or incrementally (minimum 5% buyout tranches in most cases). Buyouts are at current market value, assessed by a registered valuer. Many participants plan to buy out the government's share as their income grows and they build equity.
When You Sell
When you sell, the government receives their equity proportion of the sale price. If the property has increased in value, the government benefits from that growth proportionally. If the value has decreased, both you and the government share in that loss proportionally.
Real Numbers: Selling After 5 Years
Buyer purchases a $700,000 home with 30% government contribution ($210,000). After 5 years the property is worth $850,000 — a $150,000 gain. The government's 30% share of the sale is $255,000 (their original $210,000 plus 30% of the $150,000 gain). The buyer keeps the remaining 70% — $595,000 — plus benefits from 5 years of reduced repayments and no LMI costs.
How to Apply for Help to Buy
- Check eligibility — income, citizenship, property ownership, and deposit requirements
- Speak with a participating mortgage broker — not all lenders participate; a broker identifies which participating lenders suit your situation
- Get pre-approved — through a participating lender under the Help to Buy scheme
- Find a property — within the relevant price cap and eligible property type
- Exchange contracts — the lender coordinates the government equity contribution through Housing Australia
- Settle — you, the lender, and Housing Australia are all parties to the purchase
Not all lenders participate. Help to Buy is only available through lenders approved by Housing Australia. As a broker with access to 60+ lenders, we can identify which participating lenders offer the most competitive rates and terms for your specific situation — not just whether you're eligible, but which lender is right for you.
Is Help to Buy Right for You?
Help to Buy is a powerful scheme for the right buyer, but it's not for everyone. It works best for buyers who are income-eligible, have limited deposit savings, and are looking at properties within the price caps. The trade-off is sharing future capital gains with the government — which matters more if you're buying in a high-growth area.
For buyers with a larger deposit or higher income who don't meet the income caps, the First Home Guarantee or standard lending may deliver better long-term outcomes. The best approach is a conversation with a broker who can model both scenarios for your specific situation.
Frequently Asked Questions
Help to Buy is the Australian Government's shared equity scheme where the government co-purchases your home with you, contributing up to 40% for new builds and 30% for existing properties. You own your home outright but the government holds an equity share, which you can buy back over time.
To be eligible you must be an Australian citizen aged 18+, earn under $90,000 (singles) or $120,000 (couples), have a minimum 2% deposit, not own any other property, and intend to live in the home as your principal place of residence.
In Victoria, the Help to Buy property price cap is $950,000 for metropolitan and inner regional areas and $700,000 for other regional areas. Contact us to confirm which cap applies to your target suburb on the Surf Coast or in Geelong.
No. The government does not charge rent or interest on their equity share. You only repay the government's contribution when you sell, refinance, or voluntarily buy out their share — at market value at that time.
The First Home Guarantee allows eligible buyers to purchase with 5% deposit without paying LMI — the government guarantees part of the loan but you borrow 100% yourself. Help to Buy is different: the government actually co-purchases the property, reducing the loan amount you need to borrow and your monthly repayments.
Yes. You can voluntarily buy out the government's equity share at any time, in full or in minimum 5% tranches, at current market value. Many participants plan to buy the government out incrementally as their income and equity grows.
When you sell, the government receives their equity proportion of the sale price. If you purchased with a 30% government contribution and sell for $800,000, the government receives $240,000 and you receive the remaining 70% ($560,000) minus any outstanding loan balance.
Find Out if Help to Buy is Right for You
We'll assess your eligibility, explain all available schemes, and find the right participating lender.
