Page up to date as of 31 May 2022
Labor’s Help to Buy Scheme has been proposed by the federal government to allow eligible home buyers to enter the property market sooner.1 Similar to previous state initiatives – VIC HomeBuyer Fund and WA HomeShare Scheme - this scheme is a shared equity scheme meaning the contribution of up to 40% made by the government is in exchange for a share, or proportional interest in the property.
It is important to note that this initiative was proposed by the government.2
What is the Help to Buy Scheme and how does it work?
The Help to Buy Scheme is a shared equity scheme that will allow eligible home buyers to purchase a property with a smaller deposit. This scheme works by allowing buyers with a deposit of at least 2% of the property’s purchase price to obtain a loan with an equity contribution from the Government.3
The size of the equity contribution available can vary from up to 30% for an existing home to up to 40% of the purchase price for a new home. This aims to assist eligible home owners to enter the property market sooner with a smaller deposit and benefit from a smaller mortgage and smaller mortgage repayments. While you would not be required to pay rent on the portion of the home held by the Government, it is expected that the Government’s equity contribution be paid down over time, or paid back if you sell.
10,000 places for the Help to Buy Scheme will be available each year for eligible homebuyers.
Eligibility criteria for the Help to Buy Scheme
- Citizenship: Be an Australian citizen, at least 18 years of age
- Income: Yearly income is $90,000 or less for individuals, or $120,000 or less for couples
- Residential property: You must live in the purchased home
- Ownership: You must not currently own any other land or property in Australia or overseas
- Deposit: Have saved the required minimum 2% deposit of the home price and are able to finance the remainder of the purchase through a home loan with a participating lender
- Costs: Be able to pay for all associated upfront costs, such as stamp duty, legal fees and bank fees. You will also be responsible for ongoing costs associated with the property such as rates, strata, electricity bills, etc.
Property price caps for the Regional First Home Buyer Support Scheme
Property price cap
Capital city & regional centres
Rest of state