The federal government's Help to Buy shared equity scheme is now live and accepting applications across every state and territory. For Adelaide first home buyers, it is one of the most significant changes to the home ownership landscape in years - potentially cutting the deposit you need to just 2% and reducing your mortgage by up to 40%. Here is everything you need to know about how it works in South Australia, who qualifies, and whether it is the right move for you.
By Jason Given - July 2026 - 20 min read
Help to Buy is a federal shared equity scheme administered by Housing Australia. It launched on 5 December 2025 and is now fully operational, with all states and territories participating as of June 2026. By early 2026, over 2,300 places had already been approved nationally.
The concept is straightforward: the Australian Government purchases a share of your home alongside you. For a new build, the government contributes up to 40% of the purchase price. For an existing home, the contribution is up to 30%. You retain full ownership rights - you live in the property, you maintain it, and you make decisions about it - but the government holds an equity stake that is returned when you sell or choose to buy them out.
The immediate benefit is that your mortgage is dramatically smaller. If the government is contributing 40% of a $650,000 new home, you only need a mortgage covering 58% of the price (after your deposit). That means lower repayments, less interest over the life of the loan, and - crucially - no need for lenders mortgage insurance (LMI).
The minimum deposit required is just 2%. That is not a typo. While most lenders typically require 5% to 20%, Help to Buy participants need only 2% of the purchase price as their deposit. LMI is waived entirely because the government's equity contribution means you are not borrowing more than 72% of the property value (at maximum contribution levels), well below the 80% LVR threshold that normally triggers LMI.
To put that in dollar terms: on a $650,000 home, your minimum deposit is $13,000. Compare that to a standard 20% deposit of $130,000 or even a 5% deposit of $32,500 plus LMI, and you can see why this scheme has generated so much interest among first home buyers in South Australia.
Help to Buy has specific eligibility criteria that you need to meet before your application will be considered. Here is the full list.
Australian citizenship. You must be an Australian citizen aged 18 or over at the time of application. Permanent residents and temporary visa holders are not eligible. If you are buying as a couple, both applicants must be Australian citizens.
First home buyer status. You must not have previously owned or co-owned residential property in Australia. This includes investment properties, inherited properties, and properties owned through a trust or company structure. The government checks this against land title records in every state and territory.
Income caps. From 1 July 2026, the income thresholds are $103,000 taxable income for single applicants and $165,000 combined taxable income for couples or joint applicants. These caps are wage-indexed, meaning they are adjusted periodically to reflect changes in average earnings. The income assessed is your taxable income from your most recent Notice of Assessment, not your gross salary. This distinction matters because salary sacrifice, deductible expenses, and other adjustments can reduce your taxable income below your gross pay.
Property price caps. The property you purchase must fall within the price cap for your location. In Adelaide metro, the cap is $700,000. In regional South Australia, it is $600,000. We will cover these in more detail below, including what they mean for suburb selection.
Owner-occupier requirement. You must live in the property as your principal place of residence. You cannot use Help to Buy to purchase an investment property, a holiday home, or a property you intend to rent out. This is an ongoing requirement, not just at the time of purchase.
No existing property interest. At the time of settlement, you must not hold an interest in any other residential property anywhere in Australia. This includes land on which you intend to build (unless that land is the subject of your Help to Buy application for a new build).
One point worth noting: the income caps are assessed at application time. If your income rises above the threshold after you have been approved and settled, you do not immediately lose your place in the scheme. However, there is a review mechanism (which we cover in the buyback section below) that applies if your income exceeds the cap for two consecutive years.
Let us walk through a worked example using realistic Adelaide numbers to show exactly how Help to Buy changes the maths of buying your first home.
The difference is stark. With Help to Buy, your mortgage is $377,000 instead of $617,500 - a reduction of $240,500. Your monthly repayments drop by roughly $1,520 per month. Over the first five years alone, that is approximately $91,200 less in repayments. And you avoid the $15,000 to $20,000 LMI premium that would normally apply to a 95% LVR loan.
Your borrowing capacity also looks completely different. Because you only need to qualify for a $377,000 loan rather than $617,500, buyers who would not pass serviceability on a full-price mortgage may now qualify comfortably. This is especially relevant in the current rate environment where serviceability buffers add roughly 3% to your assessed rate.
For an existing home at $650,000, the government contribution would be 30% ($195,000), leaving you with a mortgage of $442,000 after a 2% deposit. Still a significant reduction, though not as dramatic as the new build scenario. This difference is intentional - the government is using the higher contribution to incentivise new housing construction and add to the overall housing supply.
It is worth considering what these numbers mean for your deposit savings timeline. If you are currently saving $500 per week, it would take about 26 weeks to reach a 2% deposit of $13,000. Compare that to roughly 65 weeks for a 5% deposit of $32,500, or over four years for a 20% deposit of $130,000. Help to Buy can bring forward your purchase timeline by years.
Every state and territory has its own property price caps under Help to Buy, reflecting the different housing markets across Australia. For South Australia, the caps are:
For context, here is how Adelaide compares to other capital cities:
| City | Price cap |
|---|---|
| Sydney | $1,300,000 |
| Melbourne | $950,000 |
| Brisbane | $1,000,000 |
| Perth | $850,000 |
| Adelaide metro | $700,000 |
| Regional SA | $600,000 |
The $700,000 Adelaide metro cap is realistic for most first home buyer suburbs. While median house prices in some established suburbs now exceed this, there are still plenty of areas where quality homes - both established and new builds - fall within the cap. Think suburbs like Smithfield, Munno Para, Andrews Farm, Seaford, and parts of the southern corridor where new housing estates are actively under construction. If you are looking at units or townhouses, the cap gives you even more options across a wider range of suburbs.
For a detailed breakdown of which suburbs work within these price caps, see our guide to the best suburbs for first home buyers in Adelaide.
The regional SA cap of $600,000 covers areas like Mount Gambier, the Barossa Valley, Murray Bridge, and the Fleurieu Peninsula. At current regional price levels, $600,000 still buys a quality family home in most SA regional centres.
One practical consideration: the price cap applies to the total purchase price, including any variations or upgrades on a new build contract. If you are building and the base price plus your selections pushes you over $700,000, you will not qualify. We always recommend getting your full build price locked in before applying.
This is the part of Help to Buy that generates the most frustration, and it is important to understand the current landscape clearly.
As of July 2026, there are only two participating lenders:
Commonwealth Bank (CBA). CBA processes Help to Buy applications through its branch network only. You must apply in person at a CBA branch - there is no online application and, critically, no broker access. This means mortgage brokers like Lendology cannot submit a Help to Buy application through CBA on your behalf. You need to walk into a branch and deal with a CBA lending specialist directly.
Bank Australia. Bank Australia is the second participating lender and, importantly, it is broker accessible. This means a mortgage broker can lodge and manage your Help to Buy application through Bank Australia. For clients who prefer working with a broker - and there are good reasons to, including access to broader advice and someone managing the process on your behalf - Bank Australia is currently the only option.
The MFAA (Mortgage and Finance Association of Australia) has been actively pushing for broader broker access to the scheme. Housing Australia has an open Request for Proposal (RFP) to expand the lender panel, which should bring more lenders - and more broker-accessible options - online in the coming months. But for now, these are the two choices.
What does this mean practically? If you want to use a broker (and we would obviously encourage that), Bank Australia is your current path. Their rates and products are competitive, and they have experience processing shared equity arrangements. If you specifically want CBA, you will need to manage the application process yourself through their branch network.
Either way, we can still help. Even if you end up applying through CBA directly, we can walk you through the eligibility criteria, help you understand what you can afford, compare Help to Buy against other options, and make sure you are making the right decision before you commit. The advice and strategy work is the same regardless of which lender you ultimately go through.
South Australia already has its own shared equity scheme through HomeStart Finance. With Help to Buy now live, the obvious question is: which one is better for you? Here is a direct comparison.
| Feature | Help to Buy (federal) | HomeStart Shared Equity (SA) |
|---|---|---|
| Maximum equity share | 40% new, 30% existing | Up to 25% |
| Income cap | $103,000 pre-tax (singles) $165,000 pre-tax (couples) |
$120,000 after-tax (all applicants) |
| Property price cap (Adelaide) | $700,000 | $750,000 |
| Minimum deposit | 2% | Varies (typically 3-5%) |
| LMI required? | No | No |
| Lender choice | CBA or Bank Australia only | HomeStart only |
| Broker accessible? | Bank Australia only | Direct only |
| First home buyers only? | Yes | No (broader eligibility) |
| Can combine both? | No - you must choose one or the other | |
When Help to Buy makes more sense: If you are buying a new build, the 40% equity contribution is significantly higher than HomeStart's 25% maximum. Even for existing homes, the 30% contribution still beats HomeStart's cap. If your priority is minimising your mortgage and your income is below the Help to Buy thresholds, it is likely the stronger option. The 2% minimum deposit is also the lowest of any scheme available.
When HomeStart makes more sense: HomeStart has a higher property price cap ($750,000 vs $700,000 for Adelaide), which gives you access to a slightly wider range of properties. HomeStart also uses after-tax income for its cap ($120,000), which for some borrowers is more generous than Help to Buy's $103,000 pre-tax threshold - particularly if you have significant salary sacrifice or deductions. HomeStart is also not limited to first home buyers, so if you have previously owned a property, it remains an option.
Can you use both? No. You cannot combine Help to Buy with HomeStart's shared equity option. You need to choose one pathway. This is one of the reasons getting proper advice matters - the right choice depends on your specific income, the property you are targeting, and whether you are buying new or existing.
While you cannot stack Help to Buy with HomeStart shared equity, you can combine it with several other first home buyer concessions. This is where the total package becomes very compelling.
First Home Owner Grant (FHOG) - $15,000. If you are buying or building a new home valued at up to $650,000 in SA, you can receive a $15,000 grant on top of your Help to Buy arrangement. This $15,000 can be used toward your deposit or purchase costs, further reducing what you need to save. For our $650,000 new build example, you would need $13,000 as a 2% deposit - meaning the FHOG more than covers your entire deposit requirement. See our full breakdown of first home buyer grants in SA.
Stamp duty exemption. In South Australia, first home buyers purchasing a new home valued at up to $650,000 pay no stamp duty. For new homes between $650,000 and $700,000, a concessional rate applies. For existing homes, the exemption threshold is lower, but concessions still apply. This can save you anywhere from $10,000 to $25,000 in upfront costs.
First Home Super Saver Scheme (FHSSS). You can withdraw voluntary superannuation contributions (up to $50,000) to use toward your home deposit. These contributions are taxed at 15% going in (rather than your marginal rate) and at your marginal rate minus 30% coming out, creating a meaningful tax advantage. The FHSSS works alongside Help to Buy - you could use your super savings to cover your 2% deposit plus purchase costs like conveyancing and inspections.
When you stack these together on a $650,000 new build in Adelaide, the picture looks like this: a $15,000 FHOG covering your deposit, zero stamp duty, the government purchasing 40% of your home through Help to Buy, and no LMI. Your out-of-pocket costs at settlement could be as low as your conveyancing fees, building inspection, and a few hundred dollars in miscellaneous charges. It is the most accessible entry into the housing market that has existed in decades.
Understanding the buyback mechanism is essential because it affects your long-term financial position. The government does not simply give you money - it buys a share of your home, and that share is settled at some point in the future.
Voluntary buyback. You can buy back the government's equity share at any time. You do not need to wait for a specific date or event. The buyback price is based on the current market value of the property at the time you choose to buy back, not the original purchase price. You can buy back the full share at once or do it incrementally in minimum 5% portions.
For example, if you bought your home for $650,000 and the government contributed 40% ($260,000), and five years later the home is worth $800,000, the government's 40% share is now worth $320,000. If you buy back the full share, you pay $320,000 - not the original $260,000. The government benefits from the capital growth proportionally, just as you benefit from growth on your share.
Conversely, if the property has decreased in value, the government's share decreases proportionally too. If that same home dropped to $600,000, the government's 40% share would be $240,000 - less than they originally contributed. The government shares in the downside risk as well as the upside.
What happens when you sell. If you sell the property, the government receives its proportional share of the sale price. Using the example above: if the government holds 40% and you sell for $800,000, the government receives $320,000 and you receive $480,000 (minus your outstanding mortgage). This is automatic and handled through the settlement process.
Trigger events. While the buyback is generally voluntary, there are circumstances that can trigger a requirement to address the government's equity share. The main one is exceeding the income threshold for two consecutive years. If your taxable income goes above the cap ($103,000 for singles, $165,000 for couples) for two years running, you may be required to start buying back the government's share. The specifics of the repayment schedule in this scenario are managed through Housing Australia.
Other trigger events include ceasing to live in the property as your principal residence, transferring the property to someone else, or significant changes to the property title. In each case, the government's share is calculated based on the current market value.
This shared equity structure has implications for how you think about your long-term wealth building. If your property grows significantly in value, the government captures a meaningful share of that growth. This is the trade-off for the lower entry cost and reduced mortgage burden. Whether this trade-off works in your favour depends on your personal circumstances, your timeline, and what the alternative would have been - which is exactly the kind of analysis we do in a strategy session.
Help to Buy is genuinely useful, but it is not without its constraints. Here is what you should be aware of before applying.
Limited places. Only 10,000 places are available nationally each year. A fresh allocation of 10,000 places opened on 1 July 2026, but with demand already proven (over 2,300 places taken in the first few months), competition for spots will be real. If you are seriously considering Help to Buy, do not wait indefinitely. Places are allocated on a first-come, first-served basis and once they are gone, you need to wait for the next financial year's allocation.
Extremely limited lender panel. With only CBA and Bank Australia currently participating, you do not have the benefit of shopping across multiple lenders for the best rate. In a normal purchase, a broker might compare 30 to 40 lenders to find you the best deal. Under Help to Buy, you have two choices. This is the single biggest limitation of the scheme in practice, and it is one that the industry is actively working to change.
CBA requires branch applications. If you want to use CBA (the larger of the two lenders), you must apply in person at a branch. No broker access, no online application. For busy first home buyers, this adds friction to an already complex process.
Two-year income review. Your income is monitored after purchase. If you exceed the income threshold for two consecutive years, you may be required to start buying back the government's share. For a single applicant earning $95,000 today, a couple of promotions or pay rises could push you over the $103,000 cap within a few years. This does not necessarily mean you will lose your home or face immediate financial pressure, but it is something to plan for.
Property must remain your principal residence. You cannot rent out the property, even temporarily. If you need to relocate for work, travel for an extended period, or want to move in with a partner who owns a property, you need to deal with the government's equity share first. This limits your flexibility compared to owning a property outright.
Shared capital growth. As outlined in the buyback section, the government shares in your property's capital growth. In a market like Adelaide, where property values have been growing solidly, this means giving up a meaningful portion of your wealth accumulation. On a property that grows from $650,000 to $900,000 over ten years, the government's 40% share would mean $100,000 of that growth belongs to them, not you.
Renovation and improvement considerations. Because the government holds an equity stake, any significant renovations or improvements may require their approval or involvement. Major structural changes, extensions, or subdivisions will need to be discussed with Housing Australia. Minor maintenance and cosmetic updates are your responsibility and do not require approval.
The answer depends on your specific circumstances. Here is a decision framework that covers the most common scenarios we see with Adelaide first home buyers.
The reality is that most first home buyers have more than one option available to them, and the right choice is not always obvious. We regularly sit down with clients who assume Help to Buy is their best bet, only to find that a guarantor loan or a standard low-deposit product actually puts them in a stronger long-term position. The reverse is also true - clients who dismiss Help to Buy as "too complicated" are sometimes missing out on tens of thousands of dollars in savings.
This is exactly the kind of decision where independent advice makes a real difference. We do not have a preference for which scheme you use - we just want to make sure you choose the one that gives you the best outcome based on your actual numbers.
The application process involves two stages: an eligibility check with Housing Australia, and then a loan application with a participating lender.
Step 1: Check your eligibility. Before anything else, confirm that you meet the criteria - citizenship, income caps, first home buyer status, and property price cap for your target area. You can do an initial check on the Housing Australia website or, better yet, book a chat with us and we will run through everything together.
Step 2: Get your finances in order. Gather your Notice of Assessment (most recent), proof of citizenship, employment and income documentation, and details of your savings and any debts. The more prepared you are, the smoother the process.
Step 3: Apply for a place. Submit your expression of interest or application to Housing Australia. If you are applying through Bank Australia with a broker, we can manage much of this process for you. If you are going through CBA, you will need to visit a branch.
Step 4: Find your property. Once you have conditional approval, you can start house hunting with confidence. Remember the price caps: $700,000 for Adelaide metro, $600,000 for regional SA. We can help you understand what your budget looks like in practice and which areas offer the best value.
Step 5: Finalise your loan. Once you have found a property, your lender finalises the loan application. The government's equity contribution is settled alongside your purchase - you do not receive cash; the government's share is paid directly toward the property.
Step 6: Move in. Settlement occurs as normal, and you move into your new home. The government's equity share is registered on the property title, and your ongoing obligations (principal residence requirement, income reviews) begin from settlement.
The entire process typically takes four to eight weeks from initial application to eligibility confirmation, plus the standard loan processing and settlement timeline. Starting early gives you the best chance of securing a place from the current financial year's allocation.
Help to Buy is a federal shared equity scheme where the government purchases up to 40% of a new home or 30% of an existing home alongside you. You need as little as 2% deposit and no lenders mortgage insurance is required. The scheme is administered by Housing Australia and has been live since December 2025.
You must be an Australian citizen aged 18 or over, a first home buyer with no existing property interest, and you must live in the property as your principal residence. Income caps from 1 July 2026 are $103,000 taxable income for singles and $165,000 for couples. The property must fall within the price cap for your location - $700,000 for Adelaide metro and $600,000 for regional SA.
No. You cannot combine Help to Buy with HomeStart's shared equity option. You need to choose one or the other based on which scheme best suits your circumstances. Both have different income thresholds, property caps, and equity contribution levels, so getting advice on which one works better for your specific situation is worthwhile.
As of July 2026, Commonwealth Bank (branch applications only, no broker access) and Bank Australia (broker accessible) are the participating lenders. Housing Australia has an open RFP to expand the lender panel, so more options should become available in the coming months.
You can voluntarily buy back the government's share at any time based on current market value. You can do this incrementally in minimum 5% portions. If you sell the property, the government receives its proportional share of the sale price. If your income exceeds the threshold for two consecutive years, you may be required to start buying back the government's equity.
Yes. You can use the $15,000 FHOG (for new builds up to $650,000 in SA) alongside Help to Buy. You can also combine it with stamp duty exemptions and the First Home Super Saver Scheme. The combination of these concessions can dramatically reduce your upfront costs.
There are 10,000 places available nationally each financial year. A fresh allocation of 10,000 places opened on 1 July 2026. Places are allocated on a first-come, first-served basis, so applying early gives you the best chance of securing a spot.
The government shares in both the upside and downside. If your property decreases in value, the government's equity share is worth proportionally less. For example, if the government holds 40% and the property drops from $650,000 to $600,000, their share decreases from $260,000 to $240,000.
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