The Australian Government’s Help to Buy scheme has officially passed in Parliament, introducing shared equity support to make homeownership more accessible.
Key Features
- Government Contribution: Up to 40% of the purchase price for new homes and 30% for existing homes.
- Deposit Requirements: Buyers need a minimum deposit of 2%.
- Repayment: Buyers must repay the government’s equity share over time, when selling, or when refinancing.
- Income Limits: Applicants must have a taxable income of less than $90,000 (individuals) or $120,000 (couples).
- Owner-Occupier Requirement: Homes purchased must be used as the buyer’s primary residence.
- Price Caps: Property price caps apply and vary by location, ranging from $450,000 to $950,000 in areas such as Sydney.
- No Lender’s Mortgage Insurance: Buyers do not require lender’s mortgage insurance.
Program Availability
The scheme is capped at 10,000 places each year for four years and will require supporting legislation from states and territories for implementation.
