Published by RG Settlements. Our Victoria Park team provides property settlement and conveyancing services for buyers, sellers and property owners across Perth and Western Australia.
Archive note: This article was originally published on the date shown. Rules, eligibility criteria and market conditions may have changed; confirm current requirements before acting.
Eligibility and shared equity update — 7 September 2026: The eligibility figures and ownership explanation below have been corrected using the Australian Government Help to Buy guidance. Check the current income and local property price caps with a participating lender before applying.
The Federal Government’s Help to Buy Scheme has officially passed through Parliament, marking a significant milestone for first-home buyers. This initiative aims to make homeownership more accessible, especially for those struggling with large deposit requirements.
What is the Help to Buy Scheme?
- Eligible first-home buyers can purchase a home with as little as a 2% deposit.
- The government contributes up to 30-40% of the property’s value (depending on the property type) as equity.
- A smaller deposit means lower mortgage repayments, making homeownership more financially manageable.
Why This Matters
With property prices increasing significantly—up 47% nationally over the past five years—many Australians have found it challenging to enter the housing market. This scheme offers a realistic opportunity for buyers who have struggled to meet the traditional 20% deposit requirement.
Eligibility and Key Considerations
- Available to eligible first-home buyers and people returning to home ownership. Applicants generally cannot own or beneficially own other property, with limited exceptions for single parents.
- Income caps apply: annual taxable income must currently be no more than $103,000 for an individual applicant or $165,000 for joint applicants and single parents, assessed using the previous financial year’s ATO Notice of Assessment. Thresholds are indexed annually.
- Property price limits are set based on location.
- You own the home and share part of its value with the government through its equity contribution; the amount repaid is linked to the property value at the relevant time.
Pros and Cons of the Scheme
Advantages:
✔ Reduced deposit requirement, making homeownership accessible sooner.
✔ Lower mortgage repayments due to government equity contribution.
✔ Support for individuals and families looking to enter the housing market.
Potential Drawbacks:
❌ The government retains an equity interest linked to the value of your property.
❌ Future sale or refinancing may require government approval.
❌ Income and property price caps may limit eligibility.
Is This the Right Move for You?
The Help to Buy Scheme could be a game-changer for young families, singles, and couples aiming to purchase their first home. However, it’s essential to weigh the long-term implications of shared equity with the government.
Get Expert Advice on Property Settlement
Navigating homeownership and government schemes can be complex. At RG Settlements, we provide expert legal guidance to ensure your property journey is smooth and stress-free.
Thinking about buying your first home? Contact RG Settlements today for professional property settlement advice.
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