Help to Buy Scheme: Guide for First Home Buyers

December 6, 2025

The Australian Government’s Help to Buy Scheme has officially launched, providing a structured shared-equity pathway to home ownership for low to middle income Australians, particularly First Home Buyers. This program is designed to reduce borrowing costs, lower upfront entry barriers and support those who have been unable to secure property in the current lending environment.

Whether you’re a first home buyer in NSW, VIC, QLD or any other eligible state/territory, this guide breaks down exactly how the scheme works and what you should know before applying.

Before you dive into the full breakdown below, here’s a short video where I explain how the Help to Buy Scheme works for first home buyers, including:

The 2% deposit
Government’s 30 to 40% equity contribution
And the Eligibility rules

If you’re a first-home buyer trying to understand whether this scheme is right for you, this video gives you a simple overview in just a few minutes.

👇 Watch the video first and then continue reading the full guide below.

Now that you’ve watched the overview, let’s take a deeper look at the Help to Buy Scheme and what it means for first home buyers across Australia. Below, you’ll find a detailed breakdown of eligibility, price caps, how the shared equity works and what to consider before applying.

✅ What Is the Help to Buy Scheme?

The Scheme is a shared-equity model, where the government contributes:

Up to 40% of the property value for newly built homes
Up to 30% for existing/established homes

Borrowers must contribute a minimum 2% deposit, and the remaining balance (after the government’s equity share) is financed through a standard residential mortgage with a participating lender.

The government becomes a co-owner of the property, holding an equity stake proportional to the contribution made. This equity share increases or decreases based on market movements. When the borrower sells, refinances, or chooses to “buy out” the government, repayment is calculated at the current market value, not the original purchase price.

🔑 Participating Lenders: Only CBA & Bank Australia

At launch, the Help to Buy Scheme is available through only two participating lenders:

Commonwealth Bank (CBA)
Bank Australia

These are currently the only lenders authorised to write Help to Buy shared-equity loans.

As a local mortgage broker, we can:

Assess your eligibility
Compare both lender policies
Provide scenario modelling
Submit your Help to Buy application with Bank Australia
Recommend the best option based on your income, deposit, and purchase price

This ensures you receive unbiased advice, even though the Scheme has limited lender availability.

Eligibility Criteria

Applicants must:

Be Australian citizens aged 18+
Have a gross annual income below:
- $100,000 (single)
- $160,000 (couple/single parents)
Not currently own property in Australia or overseas
Occupy the property as their principal residence
Have at least a 2% deposit
Purchase within state-specific property price caps
Meet standard lender credit assessment requirements

This program offers 40,000 places over four years, allocated on a first-come, first-served basis.

💰 Key Benefits for Borrowers

Reduced loan size hence lower repayments and reduced interest costs
Lower deposit hurdle (2% minimum)
Improved borrowing capacity for eligible buyers due to lower debt load
Strong incentives for new-build purchases due to higher equity contribution

Who Should Consider the Scheme?

This Scheme is ideal for any first-home buyers or low to middle income borrowers who:

- Have a smaller deposit
- Want lower repayments
- Fit within income caps
- Are comfortable with shared ownership
- Want to enter the market sooner rather than later

📝 Can First Home Buyers Use Other Schemes With Help to Buy?

Yes — but with some restrictions.

You can use:

First Home Buyers Assistance Scheme (state-based)
First Home Owners Grant (FHOG) for eligible new builds (state-based)

You cannot combine:

Help to Buy with the First Home Guarantee Scheme (5% deposit scheme)

📌 Considerations & Limitations

The government retains equity, reducing total ownership until the share is bought back
Equity repayment is based on future valuation, not original contribution
Limited lender participation may restrict loan product choices
Income and price caps may limit locations
Applicants must meet all standard bank credit criteria

Example Calculation

Property price: $700,000
Government contribution: 30% = $210,000
Your deposit (2%): $14,000
Loan required: $476,000

This may significantly reduce monthly repayments compared to borrowing 98% under a traditional loan structure.

If you’re considering using the Help to Buy Scheme, the proper guidance can ensure you maximise your borrowing power while understanding all long-term implications.

📞 Contact Atul from LoanFin for an eligibility check and borrowing capacity review.

Book a free consultation today.