Help to buy scheme NSW
By Ali Hasani, Founder and Principal Mortgage Broker at Buyvest, MFAA accredited. Last updated July 2026. Scheme settings verified against firsthomebuyers.gov.au.
You pay no rent and no interest on the government's share. In exchange it owns part of your home until you buy it back. This guide covers who qualifies, the NSW price caps, what you sign up to, and the choice between Help to Buy and the 5% Deposit Scheme, because you cannot use both.
The short version: 2% deposit, no LMI, no rent on the government's share, and a much smaller loan. Income must be at or below $103,000 for an individual or $165,000 for joint applicants and single parents. You must be an Australian citizen, as permanent residents are not eligible. NSW caps are $1,300,000 for Sydney and listed regional centres and $800,000 elsewhere. There are 10,000 places a year and currently two participating lenders.
How does Help to Buy work?
The government takes an equity share in your home rather than lending you money. That share reduces the size of your mortgage, which is where the benefit comes from. You repay it when you sell, or buy it back sooner in instalments.
On a $900,000 new home, a 2% deposit is $18,000. If the government contributes the maximum 40%, that is $360,000, and your loan covers roughly $522,000 rather than $882,000. Your repayments follow the smaller loan, and no Lenders Mortgage Insurance applies despite the low deposit.
The government's share is not a loan. There is no interest and no rent charged on it. What you give up is a proportional share of any growth, because when you exit, the government is repaid its percentage of the value at that time rather than the dollars it put in. Our property deposit calculator shows what a 2% deposit supports.
Who is eligible for Help to Buy?
You must be an Australian citizen aged 18 or over, earning at or below $103,000 as an individual or $165,000 as a joint applicant or single parent, and you must not own property anywhere.
Citizenship
Australian citizens only. Permanent residents are not eligible, which is a real difference from the 5% Deposit Scheme, where permanent residents do qualify. This catches people out.
Income
Taxable income at or below $103,000 for individual applicants, or $165,000 for joint applicants and single parents, assessed on your ATO Notice of Assessment for the previous financial year. These limits are indexed to wages each 1 July, so they move.
Property ownership and use
You cannot own property or land, in Australia or overseas, at the time you apply. The home must be your principal place of residence. You also cannot be receiving other government shared equity or guarantee assistance.
Applying alone or together
You can apply on your own or with one other person, and both applicants must meet the criteria independently. It is not a scheme where one eligible buyer can carry an ineligible one.
Deposit and costs
A minimum 2% deposit, plus the usual upfront costs. Help to Buy reduces your loan, not your stamp duty, conveyancing, inspections or lender fees, so those still need to be funded.
Lender access is the practical constraint. Commonwealth Bank and Bank Australia are the participating lenders. CBA requires in-person branch applications, so you cannot apply online, by phone or through a broker. Bank Australia is more flexible and accessible through the broker channel. More lenders have been expected to join, so it is worth checking the current panel before you plan around it.
What are the price caps in NSW?
$1,300,000 for Sydney and listed regional centres, and $800,000 for the rest of NSW. Both your purchase price and the lender's valuation must sit at or below the cap.
That second point matters more than it sounds. If your lender values the property below the contract price, the lower figure is the one assessed, and a purchase agreed right at the cap can fall outside the scheme once the valuation lands. Buying with a margin below the cap is the simplest protection.
Caps are set by location rather than by state, so a postcode a short distance apart can sit in a different band. Housing Australia publishes a postcode search tool, and current thresholds sit on the government Help to Buy thresholds page. Check yours before you start inspecting.
A cap is also not a budget. Your lender still assesses income, expenses, credit history and repayment capacity, so a property can sit inside the cap and well outside what you can borrow.
Help to Buy or the 5% Deposit Scheme?
You must choose one. Help to Buy gives you a much smaller loan in exchange for the government owning part of your home. The 5% Deposit Scheme leaves you owning 100% but borrowing 95% of the price.
| Help to Buy | 5% Deposit Scheme | |
|---|---|---|
| Minimum deposit | 2% | 5%, or 2% for single parents |
| What the government does | Buys an equity share, up to 40% new or 30% existing | Guarantees up to 15% to your lender, owns nothing |
| Who keeps the growth | Shared in proportion to the equity split | All yours |
| Income limits | $103,000 individual, $165,000 joint or single parent | None |
| Citizenship | Australian citizens only | Citizens and permanent residents |
| Places | 10,000 a year | Unlimited, no waiting list |
| Sydney price cap | $1,300,000 | $1,500,000 |
| Participating lenders | Two | More than 30, including all major banks |
| Your loan size | Much smaller, so lower repayments | Up to 95% of the price |
Current at July 2026. Both schemes also sit alongside the NSW stamp duty exemption and the First Home Owner Grant, which are separate and can be used with either.
Help to Buy tends to suit buyers whose income sits comfortably under the caps, who want the lowest possible repayments, and who are relaxed about sharing growth. The 5% Deposit Scheme tends to suit buyers above the income limits, permanent residents, anyone who wants full ownership of any growth, and anyone who needs a wide lender choice or a higher price cap. Our benefits and risks guide covers the trade-off in the 5% option.
Not sure which one fits?
The choice is not obvious and you only get to make it once. We will model both against your actual numbers. $0 cost to you.
What are the benefits?
A 2% deposit
On a $900,000 property that is $18,000 rather than the $90,000 to $180,000 a conventional purchase would need. For most buyers that difference is measured in years of saving. Our genuine savings guide covers what lenders want that 2% to look like.
A much smaller loan
This is the real benefit and it is ongoing rather than one-off. Borrowing $522,000 instead of $882,000 changes your repayments every month and reduces total interest substantially over the life of the loan. It also gives you more room if rates move.
No LMI and no rent
No Lenders Mortgage Insurance despite the small deposit, and no rent or interest on the government's share. Unlike many shared equity arrangements overseas, the government's stake costs you nothing to hold.
What do you agree to?
Help to Buy is governed by a Participation Agreement with Housing Australia. It carries obligations that continue for as long as the government holds a share, and they go beyond a standard home loan.
- Live in it, and only you. The home must remain your principal place of residence. Renting it out is not permitted, including part of it, for as long as you are in the scheme.
- Report changes in circumstances. Housing Australia needs to know if you acquire another property, if your citizenship status changes, or if your situation otherwise shifts.
- Keep it insured. Comprehensive home insurance must be maintained, because the government's equity sits in the building alongside yours.
- Maintain the property. Repairs and upkeep are your responsibility, and preserving value is part of the arrangement.
- Get approval before major renovations. Work over $20,000, or anything requiring council approval, needs prior sign-off. A valuation is required before and after so the effect on value is documented.
- Watch the income test after settlement. If your income exceeds the limit for two consecutive years, you may be required to repay the government's contribution.
None of this is unreasonable, but it is a genuine ongoing relationship rather than a one-off benefit. Read the Participation Agreement properly before you sign, and factor the renovation approval requirement in if you are buying something you intend to improve.
How do you increase your ownership?
Through staircasing, buying back the government's equity in minimum increments of 5% of its share. You can do this voluntarily as your circumstances improve, and each step reduces what you owe at the end.
Staircasing is priced against the property's value at the time you buy back, not what you originally paid. In a rising market each increment costs more than the last, which is an argument for buying back earlier rather than later if you have the capacity. Our home equity calculator helps you track your position.
How do you exit the scheme?
Three ways. Buy the government out over time through staircasing, refinance once you can carry the whole loan yourself, or sell, in which case the government's share is repaid from the proceeds.
On sale, the government receives its percentage of the sale price at that time. If the property has grown, it receives more than it contributed, and the balance after repaying it and your lender is yours. If values have fallen, its share falls too, which is one respect in which shared equity carries less downside risk than a 95% loan.
Refinancing out means qualifying for a loan covering the full value with a conventional lender, so it usually becomes realistic once you have built equity through repayments and growth. Our choosing the right finance guide covers the options.
Frequently asked questions
Can I use Help to Buy and the 5% Deposit Scheme together?
No. You must choose one. You also cannot be receiving other government shared equity or guarantee assistance at the same time. Help to Buy gives you a smaller loan but a shared stake in your home. The 5% Deposit Scheme leaves you owning all of it while borrowing 95%. You can use the NSW stamp duty exemption and the First Home Owner Grant with either.
Are permanent residents eligible for Help to Buy?
No. Help to Buy is open to Australian citizens aged 18 and over only. This differs from the 5% Deposit Scheme, where permanent residents do qualify, so if you are a permanent resident that scheme is the pathway to look at.
What are the Help to Buy income limits?
Taxable income at or below $103,000 for individual applicants, or $165,000 for joint applicants and single parents, assessed on your ATO Notice of Assessment for the previous financial year. The limits are indexed to wages each 1 July. If your income exceeds the limit for two consecutive years after purchase, you may be required to repay the government's contribution.
What are the price caps in NSW?
$1,300,000 for Sydney and listed regional centres, and $800,000 for the rest of NSW. Both the purchase price and your lender's valuation must sit at or below the cap, so a valuation below your contract price can put the purchase outside the scheme. Check your postcode against the government thresholds before you start inspecting.
Do I pay rent on the government's share?
No. There is no rent and no interest on the government's share. What you give up is a proportional share of growth, because the government is repaid its percentage of the value when you exit rather than the dollars it contributed.
Can I rent out the property?
No. The home must remain your principal place of residence for as long as you are in the scheme, and renting it out is not permitted. This is an ongoing obligation under your Participation Agreement with Housing Australia, not just a condition at purchase.
Can I increase my ownership over time?
Yes, through staircasing. You buy back the government's equity in minimum increments of 5% of its share. Each increment is priced against the property's value at the time, so in a rising market buying back earlier costs less than waiting.
Do I need approval to renovate?
For significant work, yes. Renovations over $20,000 or requiring council approval need prior sign-off, with a valuation before and after so the effect on value is documented. Worth factoring in if you are buying something you intend to improve.
Which lenders offer Help to Buy?
Commonwealth Bank and Bank Australia. CBA requires in-person branch applications, so you cannot apply online, by phone or through a broker. Bank Australia is accessible through the broker channel. More lenders have been expected to join, so check the current panel before planning around it. You cannot apply directly to Housing Australia.
Next steps
Check the current eligibility criteria and your postcode cap at firsthomebuyers.gov.au, then work out whether Help to Buy or the 5% Deposit Scheme is the better fit, because that decision comes before anything else.
Model both with our property deposit calculator and mortgage repayment calculator, and see how the First Home Super Saver scheme could build the deposit itself. The pre-approval to settlement guide covers the rest of the process.
Learn more about our team, or see our service areas across 220+ Sydney suburbs.
Work out which scheme suits you
We compare Help to Buy against the 5% Deposit Scheme on your actual numbers, then handle the application. 35+ lenders compared at $0 cost to you.
Email: hello@buyvest.com.au
Related resources
5% Deposit Scheme guide | Benefits and risks of a low deposit | First Home Super Saver | Genuine savings | NSW stamp duty | First Home Owner Grant | Deposit options
Service areas: 220+ suburbs across Sydney including Ryde | Parramatta | Baulkham Hills | Gladesville | Penrith | Chatswood | Castle Hill | Epping | Hornsby | Blacktown | Bankstown | Hurstville | Sutherland | Manly | Bondi | Sydney CBD and more
This article is general information only and does not take your personal circumstances into account. Income limits, price caps, participating lenders and scheme rules change, so confirm current settings at firsthomebuyers.gov.au or with a participating lender before relying on them. Shared equity is a long-term arrangement with ongoing obligations, so read the Participation Agreement carefully. For tax questions, speak with your accountant. Ali Hasani is an Authorised Credit Representative (CRN 567392) of Connective Credit Services Pty Ltd (Australian Credit Licence 389328).
Enjoying the sweet moment of success
The right support makes all the difference, whether it’s your first bite or your first property.
Important stuff:
Please note that the views and opinions expressed in this post are general information only, and this is not financial advice.
Any advice and information is provided by Buyvest Pty Ltd is general in nature, for educational purposes only and is not intended to constitute specialist or personal advice. This website has been prepared without considering your objectives, financial situation or needs. Therefore, consider the appropriateness of the advice for your situation and needs before taking any action. It should not be relied upon to enter into any legal or financial commitments. Specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy. If any financial product has been mentioned, you should obtain and read a copy of the relevant Product Disclosure Statement and consider the information contained within that Statement concerning your circumstances before deciding whether to acquire the product. You can obtain a copy of the PDS by emailing hello@buyvest.com.au. If you want to change your financial circumstances, such as applying for a loan, all loan applications are subject to credit approval.
All information on this website is subject to change without notice.