The Albanese Labor government's headline housing reform, a new type of home-buyer scheme, the Help to Buy scheme, opened for applications on 5 December 2025.
Making good an election promise, this new initiative is designed to help get first-home buyers into the property market by loaning eligible applicants part of the upfront purchase price.
But since Australian property prices are so high, there are naturally a lot of terms and conditions to sort through — and not everyone who needs the program is eligible.
So, what do you need to know about the Help to Buy scheme, and what are the important eligibility criteria?
What is Labor’s Help to Buy scheme?
Labor’s Help to Buy scheme is a shared equity scheme for eligible home buyers. The government contributes up to 40% of the price of a new home, or up to 30% of an existing home, in return for an equity share.
This means the federal government would own part of your home equity. Eventually, the equity share will need to be repaid to the government, either over time or when the property is sold.
Because it’s a shared equity scheme, Help to Buy loan repayments focus on increasing the homeowner’s equity, not repaying the exact loan amount. This means you could owe the federal government more or less than what they originally gave you, depending on how your home’s value changes over time.
However, the scheme also means homeowners won’t have to ask for that same money from a lender, potentially cutting the cost of a home loan by 30% - 40%. This has the potential to help demographics who struggle the most with financial barriers to homeownership, such as Aboriginal and Torres Strait Islander peoples and single parents.
Through the government scheme, eligible home buyers could buy new homes with lower loan-to-value ratios (LVRs), which can come with great advantages. Namely:
- Lower home loan interest rates.
- No need to save for a 20% minimum deposit.
- No need to pay Lenders Mortgage Insurance (LMI)
- Lower, and thus more manageable, mortgage repayments.
Sounds great, right? There are some catches.
How does Labor’s Help to Buy scheme work?
Help to Buy has 10,000 places a year. The scheme also has property price caps, which vary by location.
Applicants don’t need to be first-home buyers. However, you can’t own your own home when you apply — either in Australia or overseas.
The shared equity scheme is only available to Australian citizens (permanent residents are not eligible) with a taxable income of $103,000 or less for singles, or $165,000 or less for joint applicants and single parents. These income caps are indexed each year. Eligible applicants will need to have saved a minimum deposit of 2% and show they can comfortably finance the rest of the property price through a home loan.
How does the government's Help to Buy scheme compare to OwnHome?
Similar to the Help to Buy scheme, an OwnHome Deposit Boost Loan provides the opportunity for customers to get a foot on the property ladder without hundreds of thousands of dollars upfront.
Unlike the government’s Help to Buy scheme, OwnHome does not own any of your property equity. There is also no cap on income, and you can take out a Deposit Boost Loan for a home value up to $3 million.
We are designed to help those who can service a traditional mortgage - have a good career and a good salary - but are not able to save the huge sum of money required for a 20% deposit.
Backed by some of Australia’s most trusted financial institutions, OwnHome is working alongside the big players to help you get ahead in the game.
What is it?
With an OwnHome Deposit Boost Loan, all you need is the Low Deposit Premium upfront (up to 2.2% of the purchase price, minimum $9,500), and we’ll cover the rest of your 20% deposit - so you don’t pay Lenders Mortgage Insurance (LMI)! Plus, once you're ready to start the house-hunt, you'll be supported by our team of expert Buyer's Agents - at no additional cost when you pay your Low Deposit Premium upfront!
Here's how it works:
- Bridge your deposit gap - For a Low Deposit Premium of up to 2.2% of the purchase price (minimum $9,500), we’ll cover the deposit you need to unlock your very own 80% LVR mortgage.
- Hello, pre-approval - There are no restrictions on which lenders you can pair with your OwnHome deposit.
- Find your dream home - Our qualified team of home-buying experts will help you every step of the way—from search to settlement.
- Low monthly repayments - You repay your OwnHome Deposit Boost Loan over time, just like you would with your mortgage. Think of it as paying for your deposit while you live in your home. Plus, there are no penalties for paying off your loan early.
Who is eligible?
OwnHome exists to help aspiring homeowners who need a boost to their deposit. Key requirements for a Deposit Boost Loan are:
- Credit in good standing
- Proof of employment
- Permanent residency or citizenship for at least one applicant
- Looking to buy an owner-occupier property
- Savings to cover the Low Deposit Premium (up to 2.2% of the purchase price, minimum $9,500) and government fees
What does the Labor Help to Buy scheme not cover?
The scheme does not cover costs related to stamp duty, home utility bills, and body corporate fees like strata, so eligible home buyers will need to show they can cover these, as well.
The government’s share is repaid at market value when you pay it out or sell the home. Labor has said the federal government will not charge rent on the government’s share of your home equity.
Property price caps apply and vary depending on the state or territory, since some housing markets are steeper than others. Capital cities and regional centres have higher price caps than the rest of each state. Caps are set by postcode, so check the official Help to Buy price caps on firsthomebuyers.gov.au.
Here are the price caps for the Help to Buy scheme.
New South Wales
- Sydney and regional centres: $1,300,000
- Rest of NSW: $800,000
Victoria
- Melbourne and regional centres: $950,000
- Rest of VIC: $650,000
Queensland
- Brisbane and regional centres: $1,000,000
- Rest of QLD: $700,000
Western Australia
- Perth and regional centres: $850,000
- Rest of WA: $600,000
South Australia
- Adelaide and regional centres: $900,000
- Rest of SA: $500,000
Tasmania
- Hobart and regional centres: $700,000
- Rest of TAS: $550,000
ACT
- $1,000,000
Northern Territory
- $600,000
Jervis Bay Territory and Norfolk Island
- $550,000
Christmas Island and Cocos (Keeling) Islands
- $400,000
When did Labor’s Help to Buy scheme start?
Applications opened on 5 December 2025. The official Help to Buy website now says the scheme is available in all states and territories.
