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The federal government has confirmed that its shared-equity program, Help to Buy, will commence on 5 December, with the government set to take a significant stake in up to 40,000 family homes.
Under the scheme, the Commonwealth will contribute up to 40 per cent of the purchase price for new homes and 30 per cent for existing properties.
The program is aimed at low and middle-income Australians, with income caps of $100,000 for single applicants and $160,000 for couples and single parents.
Buyers will be able to enter the market with deposits as low as 2 per cent, and will not be charged lenders mortgage insurance.
40,000 households are projected to secure a property through the scheme over the next four years, with 10,000 places a year.
Bank Australia and the Commonwealth Bank have signed on as participating lenders from day one, with more lenders to join the panel in 2026.
Participants will also have the option to buy back the government’s equity share, including over time through voluntary repayments.
Price caps for the scheme will vary by state and city.
In NSW, Sydney and regional centres will be capped at $1,300,000 for the scheme, with the rest of the state limited to a purchase price of $800,000.
Melbourne and Victorian regional centres will be capped at $950,000, with the rest of the state limited to $650,000.
Brisbane and Queensland regional centres will be capped at $1,000,000, dropping to $700,000 outside of major population centres.
In WA, Perth and regional centres will be capped at $850,000, with the rest of the state limited to $600,000.
Meanwhile in South Australia, Adelaide and regional centres will be capped at $900,000 and $500,000 for the rest of the state.
Hobart and Tasmania’s regional centres will be capped at $700,000, with $550,00 elsewhere.
The ACT will be capped at $1,000,000, the Northern Territory $600,000.
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