Help to Buy Scheme Explained
What is it?
The scheme allows participants to co-purchase a home with the government. The government contributes an "equity contribution" of up to 40% for new homes and 30% for existing homes. Participants pay a mortgage for their share and don't pay rent on the government's portion.
Australian citizen, 18 years or older
Pass a financial capacity test
Individual income under $90,000 or combined income under $120,000
No current property ownership in Australia or overseas
Must live in the purchased home
Smaller deposit required
Reduced mortgage payments (up to $380,000)
Easier mortgage approval due to government partnership
Limited number of placements available
Government can terminate the arrangement and reclaim its share
Government has veto power over purchases
Annual reassessments can adjust government share
Not compatible with similar state/territory schemes
Varies by location, with a maximum of $950,000 in NSW and $700,000 in QLD
Northern Territory and Australian Capital Territory: Immediately
After individual legislation is passed
Participants must have a 2% deposit
Off-plan purchases must be completed within 24 months
Government share is recalculated annually based on property value and income changes
Joint applications allow for replacement partners (income under $120,000 combined)
Government has 90 days to reclaim its share if the arrangement ends
This separate scheme provides tax incentives for developers to build and maintain rental apartments below market rate, aiming to increase rental housing availability and ease market pressure.