Help to Buy start date revealed

The scheme is available to low- and middle-income earners – including essential workers and families – with income thresholds set at $100,000 for individuals and $160,000 for joint applicants and single parents, and as little as a 2 per cent deposit.

It is designed to assist individuals who have made “reasonable” savings toward purchasing a home, but require additional support to become a home owner.

The scheme – administered by Housing Australia – aims to help home buyers purchase a property sooner by reducing the amount of money needed to qualify for a home loan and bridge the gap between what a home buyer can borrow and the price of a home that suits their needs.

Once a home owner moves in, they can start working toward full ownership by:

• Making regular repayments from their savings to gradually increase their equity share.

• Buying back some or all of the government’s share using additional loans.

• Selling the home.

At launch, Help to Buy will be available in Queensland, Victoria, South Australia, NSW, the ACT, and the Northern Territory. The other states (Western Australia and Tasmania) still need to pass their own laws before the scheme can start there. The federal government said it’s working with those states so the scheme can roll out as soon as possible.

Property price caps are tailored to each state and territory to reflect local market conditions. They are as follows:

• NSW

  • Capital city/regional centre: $1,300,000

  • Rest of state: $800,000

• Victoria

  • Capital city/regional centre: $950,000

  • Rest of state: $650,000

• Qld

  • Capital city/regional centre: $1,000,000

  • Rest of state: $700,000

• WA

  • Capital city/regional centre: $850,000

  • Rest of state: $600,000

• SA

  • Capital city/regional centre: $900,000

  • Rest of state: $500,000

• Tasmania

  • Capital city/regional centre: $700,000

  • Rest of state: $550,000

• ACT

  • Capital city/regional centre: $1,000,000

  • Rest of state: N/A

• NT

  • Capital city/regional centre: $600,000

  • Rest of state: $600,000

• Jervis Bay Territory and Norfolk Island

  • Capital city/regional centre: N/A

  • Rest of state: $550,000

• Christmas Island and Cocos (Keeling) Islands

  • Capital city/regional centre: N/A

  • Rest of state: $400,000

To be eligible for a loan under a Help to Buy arrangement, a single first mortgage (with a maximum of two applicants) must be obtained from a participating lender, with the applicants as the sole counterparties. This mortgage must be a variable or fixed-rate loan, requiring scheduled principal and interest payments over a maximum of 30 years, though exceptions exist for hardship or new home construction. Additionally, applicants must grant a second mortgage to the Commonwealth.

For new home construction, a fixed-price contract with a licensed builder is required, ensuring the dwelling is fully completed and insured and adhering to specific construction and settlement time frames; construction must commence within 12 months of the transfer date and be completed within 36 months; while for off-the-plan dwellings, construction must begin before the sales contract, and settlement must occur no later than 90 days after approval.

The government is currently recruiting lenders to the lender panel for the scheme, meaning that, initially, the scheme will only be available through two banks: Bank Australia and the Commonwealth Bank of Australia. More lenders will be joining the panel in 2026.

Over the next four years, Help to Buy will support up to 40,000 eligible Australian households to enter the housing market (10,000 places a year).

Speaking of the upcoming launch, Housing Australia CEO Scott Langford commented: “For families and individuals, including essential workers, Help to Buy offers a meaningful pathway to home ownership. Housing Australia is proud to deliver this important initiative on behalf of the Australian Government, to help more Australians achieve the dream of home ownership.”

CBA retail bank group executive, Angus Sullivan, said: “We know it can be challenging for first home buyers or those returning to the market to take that step onto the property ladder. That’s why we’re pleased to partner with Housing Australia to support this Government initiative, aimed at making home ownership more accessible for more Australians.”

Bank Australia managing director Damien Walsh said: “Being selected to deliver Help to Buy is a proud moment for Bank Australia. It reflects our commitment to affordable and accessible housing and the communities we serve. As we continue to grow, it’s important we invest in areas that matter to our customers – and Help to Buy is a great example of this.”

MSA National has partnered with the government to support the delivery of Help to Buy – providing its technology solutions – including MSA’s ‘MyVideo’, which provides applicants with a personalised video that explains the scheme and walks them through signing and settlement, and MSA’s ‘OnTrak’ portal that provides real-time updates on how applications are progressing.

Sam Makhoul, managing director and CEO of MSA National, commented: “From our first meeting, it was clear that MSA and Housing Australia shared a common passion for the customer experience.

“By leveraging MSA’s cutting-edge digital solutions and personalised service, we are privileged to play a role in making the journey to home ownership simpler and more accessible for thousands of Australians.”

He added that he had bought his first home through the Labor government’s Home Fund scheme in 1985 and therefore knew “firsthand how transformative a scheme like Help to Buy can be”.

“Owning a home gave me a sense of stability and belonging. To now play a role in helping others achieve that same dream is a full circle moment. It’s surreal,” Makhoul said.

[Related: Government calls for lenders to join Help to Buy panel]