Buying a home has always been a major milestone in Australia, but for many young people today, it's a dream that feels increasingly out of reach. Rising property prices, high living costs, and stricter lending conditions have made it harder than ever to get a foot on the property ladder.
In response to these challenges, the Australian Government has introduced a bold new initiative: the Help to Buy scheme. Designed to make homeownership more achievable, this program could be the key for many to finally own their first home.
In this article, we’ll break down how the Help to Buy scheme works and explore other smart ways young Australians can make their homeownership dreams a reality.
The Help to Buy scheme is a federal government initiative aimed at supporting low- and middle-income earners. It operates through a shared equity model, meaning the government buys a stake in your property alongside you.
Under this scheme, the government can contribute up to 40% of the purchase price for new homes and up to 30% for existing properties. Buyers are only required to provide a 2% deposit, much less than the traditional 10% to 20%. On top of that, participants avoid paying lenders mortgage insurance, which can save thousands.
However, when it comes time to sell, you’ll need to repay the government’s share based on the property's current market value. If your home increases in value, the amount you owe will increase too.
To qualify, applicants must be Australian citizens over the age of 18. Single applicants must have a taxable income under $100,000, while couples must earn less than $160,000 combined.
Applicants must plan to live in the property as their primary residence and must not currently own any other land or property in Australia or overseas. A minimum 2% deposit is still required, and financing for the remaining amount must be arranged through a participating lender.
There are maximum property price caps depending on where you buy. In Sydney, for example, the cap is $1.3 million. In Melbourne, it is $950,000. Regional areas generally have lower price caps to reflect local market conditions.
The Help to Buy scheme is expected to launch officially in late 2025, offering 10,000 places per year over four years. It will be administered by Housing Australia, ensuring a national rollout.
The Help to Buy scheme brings the dream of homeownership within reach for many Australians. By allowing a much smaller deposit and removing the need for lenders mortgage insurance, it makes buying a home more affordable.
However, it’s important to remember that you will share your home's future capital gains with the government. Also, the limited number of spots each year means competition could be fierce.
If the Help to Buy scheme isn’t right for you, there are still several great alternatives:
Previously known as the First Home Loan Deposit Scheme, the First Home Guarantee allows buyers to purchase a property with just a 5% deposit, without the need for lenders mortgage insurance.
Family members can act as guarantors by using their own property as security. This allows buyers to purchase a home without a large deposit, though it places financial responsibility on the guarantor if things go wrong.
Teaming up with friends or relatives to purchase a home together can make buying much more achievable. It's essential, however, to have a clear legal agreement in place outlining ownership shares and responsibilities.
Rentvesting is a popular strategy where buyers purchase a property in an affordable area to rent out, while continuing to live elsewhere as tenants. This allows young buyers to start building wealth through property ownership without sacrificing lifestyle.
Saving for a home through your superannuation fund offers significant tax advantages. The FHSSS allows you to withdraw up to $50,000 plus investment earnings to help with your first home deposit.
Each state offers various grants and discounts for first-home buyers. These can significantly reduce the overall cost of purchasing a home, so it's worth checking what’s available where you live.
Homeownership might feel like an impossible dream, but it’s still within reach for young Australians who plan carefully and take advantage of the right programs. The Help to Buy scheme offers a valuable opportunity to enter the property market with a smaller deposit and lower repayments. Even if you don’t qualify, strategies like the First Home Guarantee, family support, rentvesting, and the FHSSS can open doors to homeownership.
The key is to start early: build your savings, maintain a strong credit score, and explore all your available options.
Your first home could be closer than you think.
