Help to Buy scheme officially launches

The federal government’s long-awaited Help to Buy shared equity scheme has finally begun, offering a pathway to homeownership for thousands of Australians.

Housing Australia announced the program will open to eligible buyers from Friday December 5, with 40,000 spots available over the next four years.

Under the shared equity arrangement, the government will contribute up to 40% of the purchase price for new homes or 30% for existing homes in exchange for a property share. Buyers will eventually need to repay the government’s portion, either incrementally or when the property is sold.

The scheme targets low and middle-income earners, including first-home buyers, essential workers, single parents, and families. 

Income thresholds are set at $100,000 for individuals and $160,000 for joint applicants and single parents, with participants needing a deposit of as little as 2%.

Housing Australia chief executive Scott Langford said the program is important for helping more Australians achieve homeownership.

“For families and individuals including essential workers, Help to Buy offers a meaningful pathway to home ownership,” Mr Langford said.

The launch follows criticism that the government should have implemented Help to Buy before expanding its 5% Deposit Scheme on October 1, with concerns that the latter could inflate home prices and create challenges for Help to Buy participants.

Property price caps for the program will be tailored to each state and territory to reflect local market conditions, ensuring the scheme remains accessible across different housing markets.

Initially, only Bank Australia and the Commonwealth Bank of Australia will offer the scheme, with additional lenders expected to join throughout 2025.

The program will be administered by Housing Australia, which will oversee applications and manage the government’s equity stakes in properties purchased through the scheme.