Want to own your own home but struggling to save for a big deposit? The Australian Government’s Help to Buy scheme can help. This scheme provides financial assistance towards buying a new or existing property, making homeownership more achievable for many Australians.
The Help to Buy scheme is a government initiative that offers a financial lifeline for eligible Australians purchasing a home. It operates as a shared equity model where the government contributes up to 40% of a new property’s value or 30% to an existing property, becoming a part-owner.
This allows buyers to enter the market with a minimum 2% deposit. So, you could be a homeowner with just a few thousand dollars.
This innovative initiative reduces your upfront costs, lowering monthly mortgage repayments, and potentially qualifying for a smaller loan.
It’s a strategic move to support first-time buyers and those on lower to middle incomes in achieving the Australian dream of owning their own home.
The Help to Buy scheme is anticipated to commence nationally from December 2024. States will need to pass their own legislation for the scheme to operate in their jurisdiction.
Due to high anticipated demand, the government has announced an initial cap of 10,000 spots. The scheme will run for four years, providing 40,000 opportunities for Australians to become homeowners during its lifespan.
To qualify, prospective homeowners typically should have an income of less than $90,000 per year for single applicants or a combined income of $120,000 for joint applicants.
The scheme is designed for owner-occupiers. This means you must intend to live in the property and cannot already own property within Australia or overseas.
Applicants must be an Australian citizen and should be over 18 years old.
While the scheme significantly reduces the required deposit, applicants should be able to contribute a minimum of 2% of the property's value.
You can buy a home sooner than if you were saving for a larger deposit.
The bank will use a lower percentage of the purchase price when deciding if you can afford a mortgage, making it easier to qualify.
| State/Territory | Capital city/regional centre | Rest of state |
|---|---|---|
|
NSW |
$950,000 |
$750,000 |
|
VIC |
$850,000 |
$650,000 |
|
QLD |
$700,000 |
$550,000 |
|
WA |
$600,000 |
$450,000 |
|
SA |
$600,000 |
$450,000 |
|
TAS |
$600,000 |
$450,000 |
|
ACT |
$750,000 |
N/A |
|
NT |
$600,000 |
$550,000 |
By contributing as little as 2% of the property’s value, you could potentially save up to a remarkable $380,000 with the government’s equity share of up to 40%.
For example, if you sell a property valued at $1,000,000, in which the government holds a 30% equity share, they will receive $300,000 from the sale, provided you haven’t repurchased any of their equity.
However, the upfront advantages are undeniable. Bypass costly Lender’s Mortgage Insurance (LMI), which can save you up to approximately $16,000, and enjoy the comfort of your own home sooner without the burden of rent or interest on the government’s share.
Sydney Real Estate Group is excited to be part of the Help to Buy journey to transform the lives of our clients. Our experienced team can guide you through the entire process, from determining your eligibility to finding your perfect home.
We understand that owning a home can be a challenge, and we’re excited about the potential of the upcoming Help to Buy Scheme. To help you get ahead, we’re creating an exclusive waitlist.
By signing up, you’ll be among the first to receive updates, as soon as the scheme is ready for release. We’ll guide you through the process to increase your chances of securing one of the limited 10,000 spots.
Don’t miss out on this opportunity! Join our waitlist today by submitting the contact form.
Suite 1005, 31 Lasso Road, Gregory Hills NSW 2557
enquiries@sreg.com.au
1300 00 SREG (7734)
