The Ready to Buy's Accessible Help to Buy Scheme offers first-time homebuyers the opportunity to purchase a property with a smaller deposit by combining a government loan with their mortgage. This initiative makes homeownership more attainable by reducing upfront costs and providing affordable loan options.
Check Eligibility
The Help to Buy Scheme in Australia is designed to assist low to middle-income Australians in purchasing their first home.
To qualify:
- You must be an Australian citizen and over 18 years of age.
- You must not currently own a home or land in Australia or abroad.
- You must have saved at least a 2% deposit of the property’s value.
- Your annual income must not exceed $90,000 for individuals or $120,000 for couples.
Additionally, the property you wish to purchase must be within the price caps set by the government, which vary depending on the state and region.
Save for a Deposit
Unlike traditional home loans that require a larger deposit, the Help to Buy Scheme allows you to secure a property with as little as a 2% deposit of the property’s value. You need to ensure that you have saved this amount before applying, as it forms a crucial part of the purchase.
Government Contribution
Under this scheme, the government provides an equity contribution of up to 40% for new homes and 30% for existing homes, significantly reducing the size of your mortgage. This contribution helps lower the overall loan amount and monthly repayments.
However, remember that the government will own a percentage of your property equal to their contribution.
Apply for the Scheme
Once you've confirmed eligibility and saved your deposit, you will need to apply for the Help to Buy Scheme through a participating lender.
The application will require:
- Proof of identity (driver's license, passport).Proof of income (pay slips, tax returns).Evidence of your savings for the 2% deposit.
- The lender will also assess your credit history and ability to manage mortgage repayments.
Find an Eligible Property
Once your application is approved, you can start searching for a property that fits within the Help to Buy price caps for your region. These caps vary across Australian states and territories, so it is important to know the maximum allowable property price in your area. Your loan advisor can help you identify suitable properties and ensure they meet the scheme’s requirements.
Valuation and Loan Approval
Once you've selected a property, your lender will conduct a valuation to confirm its market value and ensure it meets the price cap for the Help to Buy Scheme. Upon a successful valuation, the loan application, including the government's equity contribution, will proceed to final approval.
Settlement and Ownership
After your loan is approved, you'll move forward with purchasing the property. The government will provide its equity contribution, and you will need to secure a mortgage for the remaining amount.
Once the sale is finalized, you will own the property with the government as a co-owner based on their equity share (30% or 40%).
You can choose to buy out the government’s share over time if your financial situation allows.
