Help to Buy in NSW: The Shared Equity Scheme

Help to Buy is the Australian Government’s shared equity scheme: it contributes up to 40% of the price of a new home, or up to 30% for an existing home, and you buy the rest, from a deposit as small as 2%.

How it differs from the 5% deposit scheme

Under the 5% deposit scheme you own 100% of the home and borrow 95%. Under Help to Buy you own less of the home, but your loan and repayments are much smaller. You can buy the government’s share back over time, and you repay its portion when you sell.

The catches

Places are limited each year, income caps apply, and price caps are lower than the 5% scheme’s. Because the government shares in the property’s growth, the cheaper repayments trade off against giving up part of the upside.

Which one fits?

Broadly: strong income but small deposit points to the 5% scheme; constrained borrowing power points to Help to Buy. It depends on your numbers, run the Buying Position tool, then ask Charles to compare both pathways against live rules.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.