What Is Help to Buy?

Help to Buy is a federal shared-equity scheme where the Australian Government co-purchases your home alongside you — taking up to 30% equity in an existing home, or up to 40% in a new build — in exchange for a smaller deposit and a smaller loan. It's structurally different from the First Home Guarantee, which is a loan guarantee, not an ownership stake.

The Numbers

Because the government's contribution directly reduces your loan size, your monthly repayments can be dramatically lower than under a standard purchase — though you're sharing future capital growth with the government in return.

How to Use This Calculator

Enter the property price and whether it's an existing home or new build (new builds get the higher 40% equity option). Set your deposit percentage (2% minimum) and your expected mortgage rate. Add your income to check it against the published single-applicant cap.

Help to Buy Is Means-Tested

Unlike the First Home Guarantee, Help to Buy has income caps. Singles need an annual income below $100,000. Joint applicant caps are higher — confirm the exact current figure at Housing Australia before relying on this, since means-tested caps are reviewed periodically.

What Happens When You Sell

The government doesn't just get its original dollar contribution back — it receives the same percentage of the final sale price. If your home grows in value, the government's payout grows proportionally too, which is the trade-off for the lower loan and repayments you enjoy along the way.

Help to Buy vs. First Home Guarantee

• First Home Guarantee: you own 100% of the home, borrow more, but skip LMI with just a 5% deposit — no income cap
• Help to Buy: the government owns a real share of your home, you borrow less and repay less monthly, but give up part of future capital growth — income-capped

These schemes serve different needs and generally can't be combined for the same purchase — pick whichever trade-off suits your situation.

Worked Example

An $800,000 new build with a 2% deposit ($16,000) and 40% government equity ($320,000) leaves a loan of $464,000 — compared to $760,000 under a standard 5% deposit scheme purchase. At 6% over 30 years, that's roughly $1,780 less per month in repayments.

Where This Fits Your Bigger Picture

Compare against the First Home Guarantee calculator to see which path suits you, and check your savings strategy with our First Home Super Saver calculator.

Frequently Asked Questions