The federal Help to Buy scheme opened to applicants after launching in December 2025, and more lenders are joining through 2026. It is a shared-equity scheme: the government chips in part of the purchase price so you can buy with a smaller deposit and a smaller loan. Here is a plain-English guide for Sydney and North Shore buyers on how it works, who qualifies, and what to weigh up.
What is Help to Buy?
Under Help to Buy, the government takes an equity share in your home in exchange for contributing toward the purchase price. You own the property and live in it; the government simply holds a slice of the equity alongside you.
- The government contributes up to 40% of the price for a new home, or up to 30% for an existing home.
- You can buy with a deposit as low as 2%.
- Because your loan is smaller, your repayments are lower than a standard loan on the same property.
- There are around 10,000 places per year nationally, so it is not unlimited.
This is different from the First Home Guarantee, where you borrow the full amount minus your deposit and the government only guarantees the lender against LMI. With Help to Buy, the government actually owns part of the home with you.
Who is eligible in 2026?
Help to Buy is aimed at low- and middle-income earners, including essential workers and families. The main rules are:
- Income caps: up to $100,000 for an individual, or $160,000 for joint applicants and single parents.
- You must be an Australian citizen (some permanent residents may qualify), at least 18, and intend to live in the home.
- You generally cannot already own property in Australia or overseas.
- Sydney property price cap of $1,300,000 for the current year.
Caps, places and rules are reviewed regularly, so always confirm current eligibility before you start.
What it means on the North Shore
Sydney’s $1.3 million cap is generous compared with other states, but on the North Shore it still rules out many freestanding houses in suburbs like Gordon, Lane Cove and Willoughby. Where it can work well is apartments and townhouses in Chatswood, Artarmon and St Leonards, which often sit under the cap. The income limits also mean it suits single buyers and couples earlier in their careers rather than dual high-income households.
The trade-offs to understand
A smaller deposit and smaller loan are real advantages, but a shared-equity scheme is not free money. Before you commit, weigh up:
- When you sell, the government takes back its percentage share of the sale price, including its share of any capital growth.
- You can usually buy back the government’s share over time (in stages) as your finances improve.
- If your income later rises above the cap for two years in a row, you may be required to start repaying the government’s share.
- Only some lenders offer Help to Buy, and their interest rates and policies differ.
How to apply
Applications run through Housing Australia and a participating lender. The practical steps are to confirm you fit the income and price caps, work out your borrowing power on the smaller loan, get pre-approval through a participating home loan lender, then find a property within the cap. A broker can tell you quickly whether Help to Buy, the First Home Guarantee or a standard loan leaves you better off for your situation.
Get a clear answer before you apply
Wonderful Global helps buyers across Chatswood, the North Shore and greater Sydney compare Help to Buy against the other schemes and lenders, and line up pre-approval. We are available 24/7 and give you a clear answer within 24 hours of receiving your documents. Service available in English, Mandarin and Cantonese: call +61 404 838 365 or contact us anytime.
This article is general information only and does not take your personal circumstances into account. Consider whether the information is right for you before acting on it.