The Help to Buy scheme allows the federal government to co-purchase your home by contributing up to 40% of the purchase price for new homes or 30% for existing homes. This reduces your required loan amount and makes home ownership more accessible for eligible buyers.
Rather than providing a loan, the government becomes a co-owner of your property, sharing in both the costs and any future value changes. This arrangement significantly reduces your borrowing requirements and ongoing mortgage repayments.
The scheme targets moderate-income earners who are locked out of home ownership due to high property prices and deposit requirements.
The government's contribution varies depending on whether you're purchasing a new or established property, with higher contributions available for new builds to support construction industry.
New homes and off-the-plan purchases: Government can contribute up to 40% of purchase price, significantly reducing your borrowing requirements for newly constructed properties.
Existing established properties: Government contribution capped at 30% of purchase price, still providing substantial assistance while focusing higher support on new construction.
Similar to other government housing schemes, Help to Buy includes property price caps that vary by location to reflect different market conditions across Australia.
Price limits are set at levels that capture median-priced properties in each area, ensuring the scheme supports access to reasonable housing while managing taxpayer costs.
Participating in shared equity involves ongoing obligations to the government as co-owner, including restrictions on property use and requirements for regular reporting.
The scheme includes several options for ending the shared equity arrangement, providing flexibility as your circumstances change over time.
While shared equity reduces borrowing costs and deposit requirements, participants should carefully consider the long-term implications of shared ownership.
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