Help to Buy in Victoria: Buy a Home with Just 2% Deposit

The Australian Government’s Help to Buy scheme launched on 5 December 2025.

This is a shared equity program for up to 10,000 eligible homebuyers per year, where the government contributes:

• Up to 40% of the property price for new homes
• Up to 30% for existing homes

If eligible, you’ll only need to save 2% of the purchase price as a home deposit.

With the government’s contribution you’ll be borrowing less from the bank, which means lower mortgage repayments.

You’ll also avoid having  to pay Lenders Mortgage Insurance (LMI).

Over time, you can buy back the government’s share in the property.

You must use a participating lender to get the mortgage. Currently, only Commonwealth Bank and Bank Australia are participating.

Not interested in a shared equity scheme or would like more lending options?

Check out the Australian Government’s 5% Deposit Scheme.

Example Scenario

Buying a new home in Melbourne valued at $650,000:

• Your deposit (2%): $13,000
• Government contribution (40%): $260,000
• Mortgage amount: $377,000

Property Price Caps in Victoria

• Melbourne & Geelong: up to $950,000
• Regional areas: up to $600,000

Am I Eligible for Help to Buy?

• Australian citizen, 18 or over
• Income cap: $100,000 for singles, $160,000 for couples or single parents (based on your latest ATO Notice of Assessment)
• Must live in the home as your principal residence
• Cannot own other property in Australia or overseas
• Property price must be below the location’s cap
• Some limits apply if using other government schemes

Check full eligibility criteria: firsthomebuyers.gov.au

What happens after you purchase?

• You must continue meeting eligibility criteria (e.g., income threshold, living in the home).
• Approval from Housing Australia is required for renovations, refinancing, or selling.

Can I Repay the Government Contribution?

Yes. You can exit the scheme in several ways:

• Buy back equity over time with extra payments or additional lending
• Repay the full share when you sell
• Repayment is based on the property’s market value at the time

More FAQs: firsthomebuyers.gov.au

View the full General Terms of the Help to Buy scheme here.

Application Process

Applications open 5 December 2025, up to 10,000 places are available each year.

1. Check your eligibility
2. Gather your documents (proof of income from ATO, Australian citizenship)
3. Apply through a participating lender

Risks and Considerations

• The value of the Government share increases if property value rises
• Limited lender choice – Commonwealth Bank and Bank Australia
• Approval needed for renovations or refinancing
• Ongoing eligibility requirements to meet

For updates, visit firsthomebuyers.gov.au or speak to a participating lender.

Help to Buy is one of several State and Federal government programs you might be eligible to use when purchasing a home.

If it’s not right for you, others are available:

• First Home Super Saver Scheme
• Australian Government 5% Deposit Scheme
• First Home Owner Grant and concessions (Victoria)

Information is correct at time of publication.

Check Housing Australia for updates.