Government’s ‘Help to Buy’ scheme
The Australian Federal Government unveiled its ambitious ‘Help to Buy’ scheme late in 2024, designed to make homeownership more accessible for low and middle-income Australians through a co-purchasing model, however now in early 2025 it has now delayed the roll out until later this year (at the earliest).
The initiative, set up to support 40,000 buyers over the first four years, aims to address the growing housing affordability crisis.
Under the scheme, the government acts as a silent partner in the home purchase, easing the financial load for buyers.
At this stage, our understanding is that the scheme allows eligible Australians to purchase property with the government contributing up to 40 per cent of the purchase price for new homes and 30 per cent for existing properties.
Buyers can enter the property market with as little as a 2 per cent deposit, and unlike traditional co-ownership arrangements, no interest is charged on the government’s stake.
The government’s stake is repaid when the property is sold or when the buyer is ready to purchase the government’s share outright.
For example, a buyer purchasing a $500,000 home with a 40% government contribution would need to borrow just $300,000, substantially reducing their mortgage repayments.
This will significantly reduce mortgage burdens, the Government claims.
The scheme also includes location-specific price caps to ensure fairness across the country.
In New South Wales, for instance, we anticipate the Help to Buy price cap to be $950,000 for homes in capital cities and regional centres, while in Queensland, the cap is anticipated to be $700,000.
Eligibility will be limited to Australian citizens aged 18 or older who earn less than $90,000 individually or $120,000 combined as a household. Applicants cannot own property in Australia or overseas at the time of applying.
While the scheme provides significant support, buyers must also consider that any increase in property value will see the government’s equity share grow accordingly.
For example, if the government owns 30 per cent of a property and the home’s value increases by $100,000, the government’s share grows by $30,000. Buyers should also be aware of annual reassessments of their financial capacity and the property’s value, which could affect their eligibility.
We don’t know the exact launch date of this government scheme yet, however we will publish an update on our socials once it is up and running.
*This information is general in nature and does not take into consideration your individual circumstances. Please contact us for further information.
