Australia’s “Help to Buy” Scheme Opens Next Week — A New Path to Home Ownership

House-buying support finally arrives

Australia’s long-awaited Help to Buy scheme opens for applications on 5 December 2025, offering a new route to home-ownership for eligible buyers. The scheme — a shared-equity plan administered by Housing Australia on behalf of the federal government — is designed to help people get a foot on the property ladder amid high prices and tight mortgage conditions.

Under the scheme:

• For a new build, the government can contribute up to 40% of the purchase price; for an existing home, up to 30%.
• Buyers need as little as a 2% deposit — far lower than typical deposit requirements.
• The government’s share isn’t rent-bearing — but buyers will share any future profit or loss on the home according to ownership proportions.
• There are 10,000 places available each year, over four years — meaning supply will be limited.

Who it’s for — and who can apply

The scheme targets low- to middle-income earners and people who might otherwise struggle to save a large deposit. Eligibility conditions include:

• Minimum deposit of 2%.
• Buyer must be owner-occupier (not investor).
• The home must be below certain price-caps that vary by region.

For many first-time buyers or those returning to the housing market, Help to Buy could offer a realistic chance to buy sooner.

How it works — shared equity explained

Under Help to Buy, the home buyer obtains a mortgage for part of the property’s price — while the government takes an equity stake. This joint-ownership reduces the size of the loan required, meaning smaller monthly repayments.

When the home is sold — or if the buyer chooses to — the government’s share can be bought back, or the proceeds are split according to the ownership percentages.

This structure lowers the financial barrier to entry, but also means long-term equity (and future gains) are shared.

What’s new — expanded access and updated caps

Recent budget adjustments have expanded the scheme’s reach. Income caps have been raised to help more households qualify — and property-price caps updated to account for market conditions.

The government sees Help to Buy as one part of a broader housing affordability strategy, alongside other reforms aimed at boosting housing supply.

What it could mean — and what to watch out for

For eligible buyers, Help to Buy may significantly lower the hurdle to entering the housing market — meaning home ownership may come sooner than otherwise possible.

But there are trade-offs: buyers should understand that sharing equity with the government means future gains are shared; and because there are only limited yearly places, not everyone who qualifies may secure a spot. Experts note the scheme can help “some people” — but is not a universal solution.

Some analysts also warn that increasing buyer power via such schemes could push up overall housing demand — potentially driving prices higher in already oversubscribed markets.

How to apply — and what to do next

If you’re interested:

• Applications open from 5 December 2025. Yourmortgage.com.au+2realestate.com.au+2
• You must apply through a participating lender — for example, Commonwealth Bank of Australia (CBA) or Bank Australia.
• You need to meet deposit, income, and property-price criteria.

Given limited places, early registration and preparation is advised.

Australia’s housing affordability crisis has long excluded many hopeful buyers — but Help to Buy offers a new, government-backed route toward home ownership. For some, it could be the step that turns the dream of owning a home into reality.