The Albanese Government’s long-awaited Help to Buy scheme is set to launch later in 2025, offering a powerful new pathway to homeownership for eligible Australians struggling to break into the property market. With housing affordability continuing to dominate headlines, this shared equity initiative aims to reduce the financial hurdles for low-to middle-income earners — and as mortgage brokers, it’s our role to guide clients through how it works and how they can benefit.
What is the Help to Buy Scheme?
The Help to Buy scheme is a shared equity initiative where the government contributes up to 40% of the purchase price for new homes and up to 30% for existing homes in exchange for an equivalent equity stake in the property.
This means buyers can purchase a home with as little as a 2% deposit, avoid lenders mortgage insurance (LMI) entirely, and borrow significantly less from the bank — reducing their monthly mortgage repayments.
The government’s aim is to “take years off the time it takes to save for a deposit” and reduce the average cost of mortgage repayments by up to $1,200/month in some cases.
Example Scenario:
Let’s say an eligible single applicant earning $90,000 wants to purchase a new home in Brisbane worth $800,000:
- Buyer’s deposit (2%): $16,000
- Government contribution (40%): $320,000
- Home loan required from lender: $464,000
This significantly lowers the buyer’s monthly repayments, as they are borrowing less and avoiding LMI — potentially saving tens of thousands of dollars over the life of the loan.
Who is Eligible?
To access the scheme, applicants must meet specific eligibility criteria:
- Be an Australian citizen aged 18 or over.
- Not currently own, or have previously owned, property in Australia or overseas.
- Live in the property as their primary place of residence.
- Have a gross annual income of $100,000 or less (individuals), or $160,000 or less (couples/single parents).
- Have at least a 2% deposit
- Be able to service a home loan with a participating lender.
This means the scheme is strictly for first-home buyers only. If you’ve ever owned property — even if you sold it years ago — you won’t be eligible.
What Can You Buy?
Property price caps have been set to reflect local housing markets. These vary by state and by whether the property is in a capital city, regional centre, or elsewhere.
Here are some key figures:
| Region | Price Cap |
| NSW – Capital/Regional Centre | $1,300,000 |
| NSW – Other | $800,000 |
| VIC – Capital/Regional Centre | $950,000 |
| QLD – Capital/Regional Centre | $1,000,000 |
| SA – Capital City | $900,000 |
| WA – Capital City | $850,000 |
| TAS – Capital City | $700,000 |
| ACT | $1,000,000 |
| NT | $600,000 |
With these new limits, the government estimates that over five million properties across Australia now fall within reach of eligible buyers. As mortgage brokers, we’re watching this figure closely and can help buyers understand what properties in their area qualify.
Key Benefits for Buyers
- Lower deposit: Only 2% needed (vs. 20% in a typical loan).
- No Lenders Mortgage Insurance: Save thousands upfront.
- Government equity contribution: Reduces loan size and monthly repayments.
- Wider access: New income and property price caps make the scheme more inclusive.
The federal government has boosted funding for the scheme to $6.3 billion, up from $5.5 billion — reflecting its intent to back a significant number of homebuyers over the next four years.
Where the Scheme May Fall Short
While Help to Buy will undoubtedly be a game-changer for many first-home buyers, there are some limitations:
- Shared equity means shared ownership: The government holds a stake in your property, and you’ll need to repay that share (plus or minus capital growth/loss) when you refinance or sell.
- Limited spots: The scheme is capped (originally set at 10,000 places per year), and demand is likely to far exceed availability.
- It doesn’t address supply: Helping buyers with affordability is vital, but unless housing supply increases, the extra demand could lead to further price pressure — particularly in undersupplied markets.
The Role of Mortgage Brokers
At Australian Mortgage Corporation (AMC), we understand that navigating government schemes, lender policies, and eligibility criteria can be overwhelming. That’s where we step in:
- We’ll help assess your eligibility for the Help to Buy scheme.
- We’ll identify participating lenders and secure your pre-approval.
- We’ll guide you through the entire application and settlement
- We’ll compare all available home loan products to find the best structure for your situation — including fixed, variable, or split options.
Our goal is to take the guesswork out of this process and help you buy with confidence.
Final Thoughts
The Help to Buy scheme is a welcome step toward making homeownership more accessible for Australians who have been priced out of the market — especially young individuals, single parents, and working-class families. It’s generous, far-reaching, and designed to ease the burden of high property prices.
However, it’s not a silver bullet. Without increased housing supply and faster planning reform, affordability may remain a structural challenge in the long run. Still, for eligible buyers, this scheme may represent the best opportunity in a generation to step onto the property ladder.
If you’re wondering whether this is right for you, talk to the team at Australian Mortgage Corporation today.
We’re here to help you understand your options and make the dream of owning your first home a reality.
