Up to 40,000 low- and middle-income earners will get additional help to buy a home from next year, as the federal government launches its promised Help to Buy scheme.
The states and territories agreed to the shared equity scheme, which was one of the federal government’s 2022 election promises, at National Cabinet on Wednesday. Under the Help to Buy scheme, the federal government will contribute up to 40% of the cost of a new home, and 30% for an existing home, to 10,000 eligible buyers per year.
Requirements
Eligible single people must have an income of no more than $90,000, while couples must have a combined income of no more than $120,000. There will also price caps placed on the properties the government will support, which vary by state and city. Prime Minister Anthony Albanese says the government is opening the door of home ownership to tens of thousands of Australians. “So often these Australians have done all the right things – worked hard, saved up, made sacrifices, but a deposit for a home is still out of reach,” he said. Proptrack senior economist Paul Ryan says the Help to Buy scheme would be popular with first-home buyers who were struggling to save a deposit. “The good thing about this policy is that it recognises that the big burden for first-home buyers is saving a deposit, so the homebuyers who are accepted can jump that hurdle much more easily,” Mr Ryan said. He says the Help to Buy and home guarantee schemes are better policies than first-home buyer grants and stamp duty concessions, which can contribute to higher home prices. “These policies are likely to get first-home buyers into their homes sooner,” he said. The Help to Buy scheme is the latest federal government-supported program to help Australians buy a home.