Do you know anyone who could benefit from this?
With rates up and rent stretching budgets, one government scheme could put a first home within reach for someone you know. Here is a scenario, then the breakdown.
With interest rates up and the cost of living stretching every budget, saving a 20% deposit feels out of reach for many first home buyers.
The Help to Buy scheme is one of the most powerful options available right now. Chances are you know someone it could help. Here is a scenario to show how it works, then the full breakdown you can pass on.
Here is a scenario
Meet Sam and Priya. They are renting, earn $140,000 between them and have saved $15,000. They assumed they needed $120,000 for a 20% deposit and that home ownership was a long way off.
| Sam and Priya (illustrative) | Amount |
|---|---|
| Combined taxable income | $140,000 |
| Savings so far | $15,000 |
| Purchase price (existing home) | $600,000 |
| Deposit (2%) | $12,000 |
| Government share (up to 30%) | $180,000 |
| Their loan | $408,000 |
| Approx. repayment at an example 6.30% | $2,525 a month |
Fictional example for illustration only. Their $15,000 would cover the deposit with a small buffer, but they would still need to budget for upfront costs such as stamp duty, legal fees and inspections, which state concessions may reduce.
On a $600,000 existing home, Help to Buy could mean a $12,000 deposit, up to $180,000 from the government and a loan of about $408,000. Compared with a 20% deposit and a $480,000 loan, that is about $108,000 less cash upfront and roughly $446 a month lower repayments.
And if they buy a new $600,000 home instead? With the first home owner grant, their out-of-pocket deposit could be as little as about $2,000 in Victoria. In Queensland, a grant of up to $30,000 could exceed the whole $12,000 deposit, which is effectively negative savings required, with about $18,000 left for upfront costs.
Then break it down
Here is how the same $600,000 purchase looks across the different pathways.
| Pathway | Your deposit | Government share | Your loan | Approx. monthly repayment |
|---|---|---|---|---|
| Help to Buy, existing home (30%) | $12,000 | $180,000 | $408,000 | $2,525 |
| Help to Buy, new home (40%) | $12,000 | $240,000 | $348,000 | $2,154 |
| Standard, 5% deposit | $30,000 | None | $570,000 | $3,528 |
| Standard, 20% deposit | $120,000 | None | $480,000 | $2,971 |
Illustrative only. $600,000 purchase price, 30-year principal and interest at an example 6.30%. The standard 5% pathway excludes lenders mortgage insurance, which usually applies below a 20% deposit. All pathways exclude stamp duty, legal fees and other costs. The 'new home' figure assumes the full 40% share applies.
Could your deposit be even less?
For a new home, possibly. If you are also eligible for the first home owner grant, your out-of-pocket deposit on a $600,000 new home could be as little as about $2,000 in Victoria. In Queensland, a grant of up to $30,000 could exceed the whole $12,000 deposit, which is effectively negative savings required, with about $18,000 left to put towards upfront costs.
| New home, $600,000 | Queensland | Victoria |
|---|---|---|
| Help to Buy deposit (2%) | $12,000 | $12,000 |
| Less: first home owner grant (new homes under $750,000) | up to $30,000 | $10,000 |
| Out-of-pocket deposit | -$18,000 (grant exceeds the deposit) | $2,000 |
Illustrative only. The first home owner grant applies to new homes only and is subject to eligibility, value caps and availability. It is generally paid around settlement rather than upfront, so the timing of funds matters and needs planning with your lender. Stamp duty concessions are separate.
Who could this suit?
- Renters who feel stuck saving for a large deposit.
- Singles earning under $103,000, or couples and single parents under $165,000 (taxable income, from 1 July 2026).
- Australian citizens aged 18 or over who do not already own property and plan to live in the home.
- Buyers looking at homes under the price caps, such as $1,000,000 in Brisbane or $950,000 in Melbourne.
Are you in range?
Help to Buy is for people who do not already own property. Everyone on the purchase must be an Australian citizen aged 18 or over, and you must plan to live in the home. From 1 July 2026, taxable income caps are $103,000 for a single applicant and $165,000 for couples and single parents.
Price caps apply too. In Queensland the cap is $1,000,000 for Brisbane and regional centres and $700,000 for the rest of the state. In Victoria it is $950,000 for Melbourne and regional centres and $650,000 elsewhere. A $600,000 purchase sits inside all of them.
Watch out: places are limited each year (10,000 new places for 2026-27), and you apply through a participating lender, not directly.
What the government share really means
There is no interest and no rent on the government share. But you still pay all the costs of owning the home, including stamp duty, rates and maintenance. When you sell, the government receives its proportion of the sale price, so it shares in gains and in losses. You can buy back its share in steps of 5%, and you would need to repay it if you moved out.
Watch out: a smaller loan helps today, but you own a smaller share of any growth until you buy the government out.
Other schemes may help too
We can also look at the deposit assistance schemes available to you alongside Help to Buy. Depending on your situation, that can include the 5% deposit First Home Guarantee, state first home buyer grants and stamp duty concessions, and family-support options. Some schemes cannot be combined, so the order matters.
Part of our job is to work out which combination suits you, then line it up with the right lender before you start inspecting homes.
The honest answer is that Help to Buy will not suit everyone, and places are limited. But for the right person, at the right price point, it can bring a purchase years closer. The only way to know is to run the numbers, and that is something we are glad to do for you or for anyone you send our way.
Pass it on
Think of a sibling, a friend, a colleague or a son or daughter who is renting and feeling stuck. Forward them this article, or send a message like: "Saw this and thought of you. Apparently you can buy with a 2% deposit under the Help to Buy scheme. Worth a 20-minute chat?"
Know someone who could benefit?
Click to see how to qualify, or send them our way. We will check their eligibility, run their numbers and look at the deposit assistance schemes that could apply, free and with no obligation.
See how to qualifyBook a free callSources: Housing Australia, Help to Buy (housingaustralia.gov.au); First Home Buyers Australia (firsthomebuyers.gov.au); Broker Daily, Help to Buy 2026-27 income and price caps; Queensland Government, First home owner grant (qld.gov.au).
COPIUS Property Pty Ltd · 5-7/200 Kingston Rd, Slacks Creek QLD 4127 · REA Licence 4768482 · ABN 87 698 298 403 · ACN 698 298 403
This article is general information only and does not constitute financial, tax, credit, legal or planning advice. It does not take your personal circumstances into account. Rules, caps, rates and availability change, so confirm current details with the relevant government body, council, lender and your own advisers before acting. You should consider obtaining advice from a licensed financial adviser, mortgage broker, accountant or solicitor before acting on any information here. Help to Buy places, income caps, price caps and lender participation can change. Figures are illustrative, use an example interest rate of 6.30% on a 30-year principal and interest loan, and exclude stamp duty, legal fees, inspections and other purchase costs. The government's equity share is not free: it is repaid or shared when you sell or buy it out. Copius Property is a buyer's agency and does not provide credit advice. Mortgage broking is provided by independent licensed brokers.
