Whether you’re a first-time buyer or someone returning to home ownership, Help to Buy offers support to secure a place to call home. With 10,000 places available each year, Help to Buy is helping thousands of Australians make the step into home ownership.
Note: this Help To Buy Scheme is for first home buyers in Australia NOT New Zealand. Here at Kiwi Edition we generally focus on new and views that relate to the financial market in New Zealand; however at times will report on interesting concepts and news from overseas as it gives a good insight into what is happening there, and maybe what could happen here.
Help To Buy allows eligible customers to get into a home sooner, with support towards the purchase price.
The Australian prime minister first announced the Help To Buy scheme back in 2022, during his first term in Government. The scheme is intended to help more Australians enter the housing market at a time when property prices are climbing, living costs are rising and while Australia has a housing shortage.
What is the Help To Buy Scheme?
Under the scheme, borrowers can purchase property with as little as a 2% deposit. The government contributes 40% of the purchase price for new homes, or 30% of existing homes for eligible owner-occupiers with a mortgage. No ongoing, regular payments are required, but homeowners can repay the government shares by making regular payments or selling the home in order to increase their equity in the property.
Help to Buy is a shared equity Scheme where the Australian Government contributes towards the purchase price of your home.
Under Help to Buy you will need to:
- save yourself a minimum 2% deposit
- obtain a home loan from a participating lender (see below)
The Australian Government will:
- contribute up to 30% (existing homes) or 40% (newly built homes) toward the purchase price
This graphic and example on the Commonwealth Bank of Australia website explains how the Help to Buy can work to really make a difference.
What Else You Need to Know
Not all banks offer this scheme – currently just Commonwealth Bank of Australia (CBA) and Bank Australia are the two initial lenders of the program, but over time it’s expected that other lenders will be added to the scheme.
Income caps apply – to qualify, individual borrowers must not make more than $100,000 annually, or $160,000 for joint applicants.
House price caps also apply – each participating state and territory has its own property price caps, which sets the maximum purchase price for homes eligible under Help to Buy. These caps which you can FIND HERE reflect local market conditions and help ensure the Scheme remains fair and accessible across different regions.
Not just for first home buyers – both first-time buyers and existing homeowners can apply for the program.
Spaces are limited – applicants can apply from the 5th December but the Help To Buy Scheme will be limited to 10,000 borrowers selected each year.
It’s not Australian wide – the program will be available in Queensland, Victoria, South Australia, New South Wales, the ACT and the Northern Territory to start. The scheme is still pending in Western Australia and Tasmania, subject to local laws.
We hope that this explains a bit about what schemes are available for first home buyers in Australia.
