Help to Buy is the Australian Government's shared equity scheme. The Government contributes part of the purchase price of your home, up to 30% for an existing home or up to 40% for a new one, and in return holds a matching share of the home's value. You need a deposit of at least 2%, and a home loan from a participating lender covers the rest.
The scheme opened to applicants on 5 December 2025 and, since Tasmania joined in June 2026, is available in every state and territory. For people rebuilding after a separation, two features stand out: you do not have to be a first home buyer, and there are specific provisions for single parents, including using Help to Buy to buy out a former partner's share of the home.
- Minimum deposit of 2%, and you contribute the most you can reasonably afford
- Government contribution of 5% to 30% (existing homes) or 5% to 40% (new homes)
- Taxable income at or below $103,000 for individuals, or $165,000 for joint applicants and single parents
- Australian citizens only, aged 18 or over
- You must not currently own property in Australia or overseas, with exceptions for single parents
- No LMI, and no rent or interest payable on the Government's share
- 10,000 places for the 2026-27 financial year
1. How shared equity works
With Help to Buy, your name is on the title and you own and live in the home. The Government's contribution is recorded as a second mortgage on the title, giving it a financial interest that rises and falls with the value of the property.
- No monthly payments to the Government. You make normal repayments on your home loan, but you pay no rent or interest on the Government's share.
- The Government shares in gains and losses. When you sell, or when you buy back the Government's share, it receives the value of its share at that time. For example, if the Government contributed 25% of a $600,000 purchase ($150,000) and the home is later valued at $700,000, its 25% share is then worth $175,000.
- No LMI. The Government contributes enough, up to its maximum, so that you do not pay Lenders Mortgage Insurance.
- You pay the purchase costs. Stamp duty, legal and conveyancing fees, inspections, valuations and mortgage registration costs (including for the Government's mortgage) are yours to cover.
2. Who is eligible
Housing Australia's current rules require you to:
- Be an Australian citizen and at least 18. Permanent residents are not eligible, which is a key difference from the 5% Deposit Scheme.
- Meet the income test. Your taxable income on your Notice of Assessment for the previous financial year must be at or below $103,000 as an individual, or $165,000 combined for joint applicants. Single parents have the higher $165,000 threshold. Housing Australia says child support payments are not included in income for this test.
- Pass a financial capacity test. If you could buy a suitable home with your own savings, assets and borrowing capacity alone, Help to Buy is not available. It is designed for people who have saved what they can and are still a little short.
- Live in the home as your principal place of residence. Investment properties are not eligible.
- Not currently own property in Australia or overseas, other than under the single parent exceptions below.
- Not combine it with other shared equity or government loans or guarantees. You cannot use Help to Buy alongside another shared equity scheme, or a loan or guarantee from the Australian Government or a state or territory, to support the purchase. That includes the 5% Deposit Scheme. You can still use state grants and stamp duty concessions.
3. Previous home owners: what separation changes
Help to Buy is not limited to first home buyers. The property rule is about what you own now: you cannot currently own, or beneficially own, any property in Australia or overseas.
That matters after a separation. If the family home has been sold, or your share has been transferred to your former partner as part of your settlement, and you own no other property, you may be eligible on this test even though you have owned a home before. Compare that with the 5% Deposit Scheme for first home buyers, which excludes anyone who has held a property interest in the last 10 years (see the 5% Deposit Scheme after separation).
If you still own the home, or any other property, even jointly with your former partner, you are not eligible unless one of the single parent exceptions applies.
4. Single parents and buying out a former partner
Under Help to Buy, a single parent is someone who does not have a spouse or de facto partner and has at least one dependant (including a dependant living with you who receives a disability support pension). Single parents get two extra benefits: the higher $165,000 income threshold, and possible exemptions from the property ownership rule.
Separated but not yet divorced? Housing Australia's guidance is to speak with your participating lender. This is different from the Family Home Guarantee, where married applicants are not eligible until their divorce is final.
Buying out your former partner's share
As a single parent, you can use Help to Buy to purchase your former partner's share of a jointly owned home and become the sole registered owner. Housing Australia gives the example of a single mother who jointly owns a $500,000 home. Her settlement lets her buy her former partner's 50% share for $250,000, but she can only borrow an extra $150,000. Help to Buy contributes the $100,000 shortfall, so she keeps the home with an 80% share and the Government holds 20%.
The usual eligibility rules still apply to a buyout, including the income test, the financial capacity test, the price cap for the area and approval from a participating lender. Your settlement terms also need to line up with the Help to Buy timeline, so talk to your family lawyer and to us before you sign. Our guide to buying your partner out of the home loan covers how buyouts work more generally.
Selling a property you still own
A single parent who owns a home can still use Help to Buy to buy a different one, as long as the existing property is sold within 4 weeks of settling on the Help to Buy home. If hardship or other compassionate circumstances make that impractical, Housing Australia can consider an extension case by case.
5. Property price caps
The purchase price cannot exceed the cap for the area. Help to Buy's caps are similar to the 5% Deposit Scheme's, but not identical. In New South Wales the capital city cap is $1,300,000 (compared with $1,500,000 under the 5% Deposit Scheme), and in the Northern Territory a single $600,000 cap applies to all areas.
| State or territory | Capital city and regional centres | Other areas |
|---|---|---|
| New South Wales | $1,300,000 | $800,000 |
| Victoria | $950,000 | $650,000 |
| Queensland | $1,000,000 | $700,000 |
| Western Australia | $850,000 | $600,000 |
| South Australia | $900,000 | $500,000 |
| Tasmania | $700,000 | $550,000 |
| Australian Capital Territory | $1,000,000 (all areas) | |
| Northern Territory | $600,000 (all areas) | |
Regional centres are the Central Coast, Coffs Harbour-Grafton, Illawarra, Mid North Coast, Richmond-Tweed, and Newcastle and Lake Macquarie in New South Wales, Geelong in Victoria, and the Gold Coast and Sunshine Coast in Queensland. Source: Housing Australia Help to Buy Fact Sheet, 1 July 2026.
You can buy a new or existing house, townhouse, apartment or unit, or land with an eligible fixed-price building contract. Purchases that are not at arm's length, such as buying from a parent, another family member or a friend, are not allowed. Building insurance is compulsory for as long as you are in the scheme.
6. Living with Help to Buy and repaying the Government
Shared equity is a long-term arrangement, so it is worth understanding the ongoing obligations before you commit:
7. How it compares with HomeStart in South Australia
HomeStart Finance is South Australia's government-backed lender, and its loans are an alternative path for separated South Australians who no longer own property. HomeStart's product pages list "not own another property" as a requirement rather than first home buyer status.
| Option | Deposit | Key limits | Worth knowing |
|---|---|---|---|
| Help to Buy (federal) | From 2% | Income at or below $103,000 (individual) or $165,000 (joint or single parent). SA price caps $900,000 (Adelaide) and $500,000 (rest of state) | Government holds up to 30% (existing) or 40% (new). Citizens only. Single parent buyout provisions |
| HomeStart Shared Equity Option | Taken with a HomeStart home loan | Net household income up to $120,000 after tax. Maximum purchase price $750,000. No more than $40,000 in retained savings at settlement | HomeStart holds 5% to 25%. No interest on its share. Metro Adelaide and some regional centres |
| HomeStart Low Deposit Loan | From 3% | Existing homes in metropolitan Adelaide only | No LMI. Must not own another property and have a clear credit history |
| HomeStart Loan | From 5% to buy, 8% to build | Home must be in South Australia | No LMI. Must not own another property |
Source: HomeStart Finance product pages and Housing Australia, checked 30 October 2026. HomeStart also offers a Graduate Loan from a 2% deposit for people with a Certificate III or higher qualification and some frontline workers.
Because Help to Buy cannot be combined with a state shared equity scheme, it cannot sit alongside HomeStart's Shared Equity Option on the same purchase: in practice you would compare the two and choose one. HomeStart is also not on the current Help to Buy participating lender list. Each option has different income limits, price limits and ways of sharing growth, so the right choice depends on your income, your deposit and the home you need. We can set the options out side by side for your situation.
8. Who can arrange Help to Buy
Help to Buy is only available through participating lenders, and the panel is still small. In October 2026 the official list named seven: Bank Australia, Commonwealth Bank, Teachers Mutual Bank, Health Professionals Bank, Firefighters Mutual Bank, UniBank and Queensland Country Bank. Whether a participating lender accepts Help to Buy applications through a mortgage broker is up to that lender.
If Help to Buy looks like the right option for you, we will tell you upfront whether we can arrange it for you, and if not, point you to the right place. We will also compare it honestly against the 5% Deposit Scheme, the Family Home Guarantee, HomeStart and standard loans across our panel of 60+ lenders.
Is shared equity right for you? Help to Buy can mean a smaller loan and no LMI, but you give up part of any future growth in the home's value, you take on reviews and reporting for as long as the Government holds a share, and your choices about renting, renovating and refinancing are more limited. Housing Australia suggests reading its Target Market Determination and getting independent legal and financial advice before signing.
Common questions
Wondering if shared equity suits you?
We will compare Help to Buy with the 5% Deposit Scheme, the Family Home Guarantee and standard loans for your situation, and tell you whether we can arrange it. Confidential, no cost.
- Housing Australia, Help to Buy Scheme Customer Guide, version 260701 (1 July 2026).
- Housing Australia, Help to Buy Scheme Fact Sheet, 1 July 2026.
- Housing Australia, More Australians set to benefit as Help to Buy expands from 1 July 2026.
- firsthomebuyers.gov.au, Help to Buy participating lenders and Help to Buy FAQs, checked 30 October 2026.
- Housing Australia, 5% Deposit Scheme for First Home Buyers Information Guide, 1 July 2026 (the two schemes cannot be used together).
- HomeStart Finance, Shared Equity Option, Low Deposit Loan, HomeStart Loan and Graduate Loan, checked 30 October 2026.
Rules and caps were checked against these sources on 30 October 2026. Government schemes and lender policies change, so we confirm the current position before you apply.
Lendology
We are not just explaining the process. We arrange the actual finance: refinancing into your sole name, funding a partner buyout, or setting up a new loan independently after settlement. We work with a panel of over 60 lenders to find the one that fits your situation.
Once the legal side of your property settlement is resolved, the next step is usually a financial one. That is where we come in.
Jason and Steve also help clients with first home loans, refinancing, and investment lending at lendology.com.au.