Shared Equity Scheme guide for NSW
This guide explains how Help to Buy works, who is eligible, the property price caps for NSW, how to increase your ownership over time, and how the scheme fits alongside other first home buyer pathways. For the latest official information, visit firsthomebuyers.gov.au.
Quick summary: Help to Buy launched on 5 December 2025 in NSW and most states. The government contributes up to 40% equity on new homes and 30% on existing homes. You need just a 2% deposit, there is no LMI, no rent on the government's share, and your monthly repayments are significantly lower because you borrow less. Income caps are $100,000 (single) or $160,000 (couple). NSW price caps are $1,300,000 for Sydney and regional centres, and $800,000 for other areas. There are 10,000 places available per year (40,000 over 4 years), and demand has been strong since launch.
How does Help to Buy work?
Help to Buy is a shared equity arrangement where the Australian Government, through Housing Australia, holds a proportional interest in your property. You purchase with a minimum 2% deposit and take out a home loan through a participating lender for the remainder after the government's contribution. The government contributes up to 40% of the purchase price for new homes and up to 30% for existing homes, which means you borrow significantly less from your lender.
For example, if you purchase a new home in Sydney valued at $900,000, you would provide a 2% deposit of $18,000. The government would contribute up to 40%, which is $360,000. Your home loan would cover the remaining $522,000 instead of the $882,000 you would need without the scheme. This dramatically reduces your monthly repayments and means no Lenders Mortgage Insurance is required despite the low deposit.
Importantly, the government does not charge rent on their share of the property. You live in the home as your principal place of residence and can gradually buy back the government's equity over time. The government's share is repaid when you sell the property, refinance, or make voluntary payments. Use our property deposit calculator to see how a 2% deposit changes your numbers.
Eligibility criteria
To qualify for Help to Buy, you must be an Australian citizen aged 18 years or older. Note that unlike some other first home buyer schemes, permanent residents are not eligible for Help to Buy. You must have a taxable income of $100,000 or less as a single applicant, or $160,000 or less for couples and single parents.
You cannot currently own any other property or land in Australia or overseas. The property you purchase must be your principal place of residence, not an investment property. You need to have saved a minimum 2% deposit and be able to cover other upfront costs such as stamp duty, legal fees, and bank charges.
Understanding your budget and overall financial position is the first step. A consultation with our team can help you determine whether Help to Buy suits your circumstances, especially as the scheme has specific requirements that differ from other programmes like the Home Guarantee Scheme.
Important note on lenders: Help to Buy is currently available through Commonwealth Bank and Bank Australia only. CBA is currently accepting applications through its in-house channels only (not through mortgage brokers), while Bank Australia is accessible through the broker channel. More lenders are expected to join the scheme panel during 2026. We can help you understand your options and determine which pathway gives you the best outcome.
Property price caps for NSW
The scheme has property price limits depending on where you are buying. For NSW capital city and regional centres (covering Sydney, Newcastle, Wollongong, and surrounding areas), the price cap is $1,300,000. For other areas of NSW, the cap is $800,000. These caps are designed to reflect local market conditions and ensure the scheme supports first home buyers across diverse communities.
When considering what type of property to purchase, whether a freestanding house, a strata apartment or townhouse, or vacant land with a construction contract, the property must fall within these caps. Our guide on how to buy the right property helps you compare options, and our location, condition, and vibes guide helps you evaluate suburbs and neighbourhoods.
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Key benefits of Help to Buy
Ultra-low deposit requirement
You can enter the property market with just a 2% deposit instead of the traditional 10% to 20%. On a $900,000 property, that is $18,000 instead of $90,000 to $180,000. This dramatically reduces the barrier to home ownership and allows you to purchase years sooner than if you were saving a larger deposit. The genuine savings requirements for Help to Buy are also more accessible given the smaller deposit amount.
Significantly smaller home loan and repayments
With the government contributing up to 40% equity on new homes, your home loan is substantially smaller than it would otherwise be. This means lower monthly repayments from day one, less interest paid over the life of the loan, and a more comfortable financial position. Understanding your Loan to Value Ratio helps you see how much less you are borrowing compared to a traditional purchase.
No Lenders Mortgage Insurance
Even though you are contributing less than 20% as a deposit, LMI is not required under Help to Buy. This eliminates a substantial upfront cost that typically ranges from thousands to tens of thousands of dollars, allowing you to put more of your savings toward the property itself.
No rent on the government's share
You pay no rent on the portion of the home owned by the government. This distinguishes Help to Buy from traditional shared equity arrangements where rent is charged on the co-owner's share. You build equity in the property without any additional occupancy cost beyond your mortgage repayments.
Increasing your ownership over time (staircasing)
You can increase your equity share over time through a process called "staircasing." The minimum increase is 5% of the government's share, and you can make these payments voluntarily as your financial circumstances improve. This allows you to gradually buy back the government's equity interest and eventually own the property outright without needing to sell. Understanding your home equity position helps you plan these strategic buyback payments and track your progress toward full ownership.
Ongoing obligations
As a Help to Buy participant, you must meet several ongoing obligations. You are required to report any changes of circumstances to Housing Australia, for example if you acquire another property or your citizenship status changes. You must maintain comprehensive home insurance on the property to protect both your investment and the government's equity stake. You are responsible for maintaining the property and carrying out necessary repairs to preserve its value. And significant renovations costing over $20,000 or requiring council approval need prior government approval to ensure value preservation.
If your income exceeds the eligibility limit for two consecutive years, you may be required to repay the government's equity contribution. Planning your long-term financial strategy helps you prepare for this scenario. Our budgeting guide can help you map out your finances.
Exiting the Help to Buy Scheme
There are several ways to exit the scheme when you are ready to own your home outright. You can make voluntary payments to buy back the government's share over time through regular or lump-sum payments, progressively increasing your ownership stake. When the property is sold, the government's equity contribution is repaid from the sale proceeds, and if the property has appreciated, the remaining proceeds are yours. You can also exit by refinancing your home loan once you have built sufficient equity to qualify independently with a traditional lender through our range of home loan options.
How Help to Buy compares to other schemes
Help to Buy is one of several government programmes available to first home buyers, and understanding how they compare helps you choose the right pathway.
The Home Guarantee Scheme requires a 5% deposit and the government guarantees up to 15% to your lender, eliminating LMI. You own 100% of the property from day one. Read about the benefits and risks to compare. Help to Buy requires just a 2% deposit and the government co-owns up to 40%, meaning a much smaller loan and lower repayments, but you share ownership until you buy them out.
The First Home Super Saver Scheme helps you build your deposit faster through tax-advantaged superannuation contributions and can be used alongside either Help to Buy or the Home Guarantee Scheme. NSW stamp duty concessions and the First Home Owner Grant ($10,000 on new homes) can also be combined with Help to Buy for maximum benefit.
Whether you buy through private treaty, auction, or off the plan, our property purchase and valuation guide explains how each buying method works. The bank valuation process confirms the property meets lender requirements, and our settlement guide walks you through the final stages. For the full picture of your home buying journey, start with our step-by-step guide.
Frequently asked questions
What is the Help to Buy Scheme?
Help to Buy (formerly the Shared Equity Scheme) is an Australian Government initiative that launched on 5 December 2025. The government contributes up to 40% of the purchase price for new homes and up to 30% for existing homes, allowing eligible buyers to enter the market with just a 2% deposit. No LMI is payable and no rent is charged on the government's share. There are 10,000 places available per year (40,000 over 4 years). For the latest details, visit firsthomebuyers.gov.au.
How much deposit do I need for Help to Buy?
You need a minimum deposit of 2% of the property's purchase price. On a $900,000 property, that is $18,000. The government's equity contribution makes up the difference, significantly reducing the size of your home loan and monthly repayments. Use our property deposit calculator to see how much you need to save for your target property.
What are the income limits?
Your annual taxable income must be $100,000 or less for a single applicant, or $160,000 or less for couples and single parents. If your income exceeds these limits for two consecutive years after purchase, you may be required to repay the government's equity contribution.
Do I have to pay rent on the government's share?
No. You do not pay rent on the portion of the property owned by the government. You will eventually need to buy back the government's share, either over time through voluntary payments (staircasing) or when the property is sold. This no-rent feature makes Help to Buy more affordable than traditional co-ownership arrangements.
Can I increase my ownership share over time?
Yes. You can increase your share through voluntary payments in minimum increments of 5% of the government's equity. This process is called staircasing. As your financial circumstances improve, you have the flexibility to accelerate this process and eventually own the property outright. Our home equity calculator helps you track your equity position.
What happens if my income exceeds the eligibility limit after purchase?
If your income exceeds the limit for two consecutive years, you may be required to repay the government's equity contribution. However, there is no indication that you would be required to sell the property. The specifics depend on individual circumstances. Planning your long-term financial strategy with a mortgage broker helps you prepare for this scenario.
What happens when I sell my home?
When you sell, the government's equity contribution is repaid from the sale proceeds based on the government's percentage share of the current property value. If the property has appreciated, the remaining proceeds after repaying the government's share are yours. Alternatively, you can buy out the government's share through voluntary payments or refinancing before you sell.
Which lenders currently offer Help to Buy?
As of early 2026, Commonwealth Bank and Bank Australia are the two participating lenders. CBA is currently accepting applications through its in-house channels only (not through mortgage brokers), while Bank Australia is accessible through the broker channel. More lenders are expected to join the scheme during 2026. We can help you understand your options and determine the best approach for your situation.
Can I use Help to Buy for an investment property?
No. The property must be your principal place of residence. It cannot be used as an investment property. This ensures the scheme directly supports people into home ownership rather than investment. Our guide on choosing the right property helps you find a home that suits both your lifestyle and financial goals.
What if I want to renovate the property?
Significant renovations valued over $20,000 or requiring council approval need to be approved by the government beforehand. A valuation must be conducted before and after the renovations to ensure the modifications maintain or increase the property's value. This protects the government's equity stake and ensures quality improvements to the home.
Take the next step
Help to Buy is now live and places are filling quickly. If you meet the eligibility criteria, it represents one of the most accessible pathways into the property market with just a 2% deposit and no LMI. Combined with stamp duty concessions and the First Home Owner Grant on new properties, the total benefit can be substantial.
Use our property deposit calculator to model your 2% deposit, our home equity calculator to understand shared equity scenarios, and our mortgage repayment calculator to see how much lower your repayments would be with the government's equity contribution. Secure your pre-approval early to position yourself for a swift purchase.
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Related resources for first home buyers
Continue building your knowledge with our Home Guarantee Scheme guide for 5% deposit purchases with no LMI, our First Home Super Saver Scheme guide to accelerate your deposit through superannuation, our NSW First Home Owner Grant guide for the $10,000 government grant on new homes, our deposit options guide for every pathway to your first deposit, and our essential first home buyer tips covering the six key areas every buyer must understand.
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