The Times Australia
The Times Real Estate

.
The Times Real Estate

.

Help to Buy Scheme: Find out what the recently passed bill means for you

  • Written by The Times

For many Australians, stepping into the property market feels as daunting as climbing Everest—challenging, expensive, and full of obstacles.
The Federal Government’s Help to Buy Scheme, is a game-changer for 40,000 low to middle-income Australians. This shared equity program lets eligible first-home buyers purchase with just a 2% deposit, with the government contributing up to 40% for new homes and 30% for existing properties.
By lowering upfront costs and mortgage repayments, it removes key barriers to homeownership. Paired with Build-to-Rent incentives, this initiative aims to fast-track your path to owning a home.

3 Reasons Why This Scheme Will Get You on the Property Ladder Sooner
1. Significantly Reduced Deposit Requirement:
The Help to Buy Scheme dramatically lowers the entry barrier to homeownership by requiring only a 2% deposit.
  • Less savings stress: You can enter the market with a smaller deposit. For a $500,000 property, you only need $10,000, not the usual $100,000.
  • Faster entry: Reduced upfront costs mean you can enter the market years earlier.

2. Increased Purchasing Power

The government’s contribution (up to 40% for new homes, 30% for existing) stretches your budget, making it easier to secure a better property.
  • More options: A $400,000 budget could extend to properties worth up to $666,000.
  • Better opportunities: Access homes in desirable areas or with features that fit your needs.
Scott Bolton, Aussie Broker, Canberra emphasised the impact, "Having the government as a co-investor helps buyers get into properties they once thought were out of reach.”

3. Lower Ongoing Costs

Borrowing less from the bank means lower mortgage repayments, easing the long-term financial burden.
  • Smaller monthly payments: Reduced loan amounts lead to less strain on your budget.
  • No interest on the government’s share: Keeps more income available for other expenses or savings.
Lachlan Howell, Aussie Broker, Neutral Bay adds, "This scheme is a game-changer for many Australians. Not only does it provide the opportunity to lower your ongoing monthly mortgage repayments, but it also offers the chance to hold a share in a larger asset, providing both short-term and long-term benefits. It's a stepping stone for many to overcome the challenges of entering the property market by significantly minimising their deposit. Aussies can now achieve their homeownership goals today rather than years down the track."

Eligibility Criteria

To qualify for the Help to Buy Scheme, applicants must meet the following conditions:
  • Be Australian citizens aged 18 or over
  • Have an annual income of $90,000 or less for individuals, or $120,000 or less for couples
  • Not currently owning property in Australia or overseas
  • Intend to live in the purchased property
  • Be able to finance the remainder of the purchase through a standard home loan
  • Have saved the minimum 2% deposit and be able to cover associated costs such as stamp duty and legal fees

Property Price Caps

The scheme includes property price caps that vary by location. While the exact caps for the Help to Buy Scheme are yet to be announced, they are expected to be similar to those of the First Home Guarantee:
State/Territory
Capital City and Regional Centres
Rest of State
NSW
$950,000
$750,000
VIC
$850,000
$650,000
QLD
$700,000
$550,000
WA
$600,000
$450,000
SA
$600,000
$450,000
ACT
$750,000
TAS
$600,000
$450,000
NT
$600,000
550,000

The Help to Buy Scheme Summarised

The Help to Buy Scheme is a shared equity program that enables eligible buyers to enter the property market with a smaller deposit and reduced mortgage. Here's how it works:
  1. Government Contribution: The federal government will contribute up to 40% of the purchase price for new homes and 30% for existing properties
  2. Deposit Requirement: Buyers need only a 2% deposit to participate in the scheme
  3. Ownership Structure: The government becomes a co-owner of the property, holding an equity stake proportional to its contribution
  4. No Rent or Interest: Participants don't pay rent or interest on the government's share of the property.
  5. Buying Back Equity: After two years, homeowners can start buying back the government's share in 5% increments.
  6. Equity at Sale: If the property is sold, the government recovers its equity contribution plus a proportional share of any capital gains.

How do I apply for the Help to Buy scheme?

The Help to Buy scheme is yet to be officially legislated, but you can start getting ready to apply as soon as it launches:
  1. Check your eligibility: Ensure you meet the Help to Buy criteria above.
  2. Find the right lender: Talk to a Local Aussie broker to assess your financial situation and explore the options available for your circumstances.
  3. Find the perfect home: Search for a property, keeping in mind the above price caps for each state and territory.
  4. Submit paperwork: Work with your Aussie broker to submit relevant paperwork for your application.

Property Times

Maximizing Space in Narrow Lot Homes: Smart Design Solutions

Urban housing markets continue to push homeowners toward smaller, narrower lots as land prices climb and city populations grow. These thin slices of real estate present unique design hurdles that require creative thinking and specialized architectu...

Can You Sell Your House Privately in Queensland? Here’s How

Selling a house privately in Queensland is entirely possible and can be a cost-effective alternative to using a real estate agent. While agents provide valuable expertise, their commissions and fees can take a significant portion of your sale proceed...

Brisbane Homeowners Warned: Non-Compliant Flexible Hoses Pose High Flood Risk

As a homeowner in Brisbane, when you think of the potential for flood damage to your home, you probably think of weather events. But you should know that there may be a ticking time bomb, ready to inflict tens of thousands of dollars in damage, ...

Building A Strong Foundation For Any Structure

Building a home or commercial building can be very exciting. The possibilities are endless and the future is interesting. You can always change aspects of the building to meet the unique needs of your family or business. Nevertheless, you have to go ...

The Times Features

Best Deals on Home Furniture Online

Key Highlights Discover the best deals on high-quality outdoor furniture online. Transform your outdoor space into a stylish and comfortable oasis. Explore a wide range of d...

Discover the Best Women's Jumpers for Every Season

Key Highlights Explore lightweight jumpers for spring and summer, ensuring breathability and ease. Wrap up warm with cozy wool jumpers for the chilly autumn and winter season...

Uncover the Elegance of Gorgeous Diamond Tennis Necklaces

Key Highlights Diamond tennis necklaces are a timeless piece of jewelry that exudes elegance and sophistication. They feature a continuous line of brilliant-cut diamonds, cre...

Dental Implants vs. Dentures: Which Is Better for You?

When it comes to replacing missing teeth, two of the most common options are dental implants and dentures. Both have their advantages and disadvantages, so choosing between them ...

What Neck Pain Really Means (And Why It’s More Than Just Poor Posture)

Neck pain is often brushed off as something temporary — a tight spot after a long day at the desk or a poor night’s sleep. But when the discomfort keeps returning, it could be a ...

The Work of Gosha Rubchinskiy: Fashion, Culture, and Youth

From Designer to Cultural Architect Gosha Rubchinskiy is not just a fashion designer—he's a cultural force. Born in Moscow in 1984, Rubchinskiy began his career in fashion in t...

Times Magazine

The Essential Guide to Transforming Office Spaces for Maximum Efficiency

Why Office Fitouts MatterA well-designed office can make all the difference in productivity, employee satisfaction, and client impressions. Businesses of all sizes are investing in updated office spaces to create environments that foster collaborat...

The A/B Testing Revolution: How AI Optimized Landing Pages Without Human Input

A/B testing was always integral to the web-based marketing world. Was there a button that converted better? Marketing could pit one against the other and see which option worked better. This was always through human observation, and over time, as d...

Using Countdown Timers in Email: Do They Really Increase Conversions?

In a world that's always on, where marketers are attempting to entice a subscriber and get them to convert on the same screen with one email, the power of urgency is sometimes the essential element needed. One of the most popular ways to create urg...

Types of Software Consultants

In today's technology-driven world, businesses often seek the expertise of software consultants to navigate complex software needs. There are several types of software consultants, including solution architects, project managers, and user experienc...

CWU Assistive Tech Hub is Changing Lives: Win a Free Rollator Walker This Easter!

🌟 Mobility. Independence. Community. All in One. This Easter, the CWU Assistive Tech Hub is pleased to support the Banyule community by giving away a rollator walker. The giveaway will take place during the Macleod Village Easter Egg Hunt & Ma...

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

LayBy Shopping