Help to Buy is designed to help eligible Australians—especially low-to-middle income earners—purchase a new or existing home with a smaller deposit and a lower ongoing mortgage burden. NSW has passed legislation so people in NSW will be able to use Help to Buy.

How the scheme works

Under the shared-equity model, the government takes an equity stake in your home, reducing the size of your mortgage.

• Equity contribution: Up to 40% of the purchase price for new homes, or up to 30% for existing homes.
• Minimum deposit: As little as 2% of the purchase price from the buyer.
• No LMI: Because of the government’s shared-equity contribution, Lenders Mortgage Insurance (LMI) isn’t required.
• Owner-occupied only: The property must be your principal place of residence (it can’t be bought as an investment).

Eligibility and price caps

• Income caps:
  • Up to $100,000 taxable income for single applicants
  • Up to $160,000 taxable income for joint applicants / single parents
• Property price caps:
  • In Sydney and regional centres of NSW, the cap is around $1.3 million
  • Lower caps apply in other parts of NSW

What happens over time

• You’re the legal owner. The government holds an equity share—they own part of the value.
• On sale or refinance, you repay the government’s proportional share of the property’s value at that time.
  • If the value has increased, their share (in dollars) increases too.
  • If the value has decreased, their share decreases accordingly.
• Buy-back option: You may have the option to gradually buy back the government’s share over time.

Benefits for buyers

• Faster entry into the market: A small deposit means you don’t have to wait years to save.
• Lower monthly repayments: Your loan is smaller because part of the purchase price is covered by the government.
• No LMI: One less upfront cost.
• Clear partnership: Remember the government is a part-owner; factor that into future plans.

Things to watch out for

• Lender settings: With a smaller deposit, some lenders may apply stricter criteria or higher interest rates.
• Sharing the upside: Because the government holds an equity stake, you’ll repay their proportional share when you sell—if your home has risen in value, the dollar amount you owe also rises.
• Caps and rules: Eligibility and price caps mean not all homes will qualify, which can limit location, size, or property type.
• Evolving details: The scheme is still relatively new, so some settings may be refined as it’s implemented.