More low‑ to moderate‑income Australians will be able to get a foothold on the property ladder from today, with applications now open for the federal government’s long‑awaited Help to Buy shared‑equity scheme – a product mortgage brokers will need to weigh carefully against the existing Home Guarantee Scheme.
Help to Buy is administered by Housing Australia and initially available only through Commonwealth Bank and Bank Australia, with more lenders expected to join in 2026.
Under Help to Buy, the Australian government co‑buys the home with the purchaser:
This is not a grant. The government takes an equity stake in the property, and the buyer:
Key scheme settings:
Housing Australia says the scheme is designed to make homeownership “more achievable for thousands of eligible households”, particularly essential workers, single parents, first‑home buyers and families.
Most eligible clients will ask which scheme is better for them. For brokers, the headline contrasts are:
Deposit requirement
Government role
Income caps
Places & panel size
Price caps
In practice, the trade‑off is:
From a borrower’s perspective, the main advantages are:
Key drawbacks and risks to discuss with clients:
Help to Buy does not increase a borrower’s maximum loan size by itself – banks still assess income, expenses and buffers the same way. Instead, it allows that same borrowing power to go further in terms of property price.
Canstar.com.au’s example for a single borrower earning $90,000 a year, taking a 30‑year CBA loan at 5.64%, with minimal expenses, no debts and no dependants, shows the difference:
Under Help to Buy (existing property, 30% government share):
Under the Home Guarantee Scheme:
So for the same borrowing capacity and repayment, Help to Buy can lift the property price ceiling by roughly $180,000, at the cost of giving the government a 30% equity slice.
Canstar.com.au data insights director Sally Tindall (pictured) says Help to Buy could be the difference between permanent renting and homeownership for some households.
“Help to Buy could well be a lifeline for people who’ve been watching the first rung on the property ladder rise further out of reach," Tindall said. "For some, this scheme will be the difference between renting indefinitely and finally getting the keys to their own home.”
She said the scheme is deliberately aimed at lower‑income households who have been locked out as prices have surged, with the income caps helping to ensure “the help goes to those who genuinely need the support”. Having the government chip in up to 30% on existing homes and up to 40% on new builds means “a significantly smaller mortgage, smaller repayments and no lenders’ mortgage insurance.”
Tindall noted that, unlike the Home Guarantee Scheme, Help to Buy is capped and highly targeted, so it is “not expected to put any extra heat into an already inflated property market.” But she warned that shared equity “comes with some pretty significant strings attached,” including sharing profits with the government and the possibility of being asked to buy back part of the government’s share if income rises above the cap for two consecutive years.
“With only two lenders on board at the start, borrowers won’t have the luxury of shopping around,” she said, adding that while Help to Buy “will get more people into the market,” it “does nothing to fix the structural affordability issues facing the country. It’s a helping hand for tens of thousands of households – not a silver bullet.”
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