What is the Help to Buy scheme?
Help to Buy is Australia's national shared equity scheme. You buy a home now with a home loan from a participating lender, and the Australian Government contributes part of the purchase price in return for an equity share. It is administered by Housing Australia, and you apply through a participating lender — not directly to Housing Australia. It is not a rent-to-own or rent-to-buy arrangement: you never rent the home first.
Applications opened on 5 December 2025. The scheme has 10,000 places each year for four years (up to 40,000 households). The government contributes up to 30% of the price for an existing home, or up to 40% for a new home. You need a minimum 2% deposit. The government shares in gains or losses when you sell or buy out its share.
Help to Buy vs rent-to-own: the quick comparison
Here is how the two paths compare on the points that decide which one fits. PublicSquare's column is its Rent-to-Own program in Queensland and New South Wales.
| PublicSquare Rent-to-Own | Help to Buy | |
|---|---|---|
| How you get in | Rent with an option to buy; switch to a mortgage in years 4–8 | Buy now with a shared equity contribution from the government |
| Deposit at the start | No deposit; limited additional costs (legal advice, bond, signing fee and first 12 weeks of our fee) | Minimum 2% of the purchase price, plus stamp duty and buying costs |
| Who owns the home | An investor until you buy; you hold a call option | You, with the government holding up to 30% (existing) or 40% (new) |
| Weekly / ongoing cost | Market rent + an extra 50% on top (your deposit) + our weekly fee instalment | Principal and interest loan repayments; you pay rates, insurance and maintenance |
| Income limits | Assessed on capacity (no published hard income cap); all applicants under 50 | $103,000 single / $165,000 joint or single parent (FY 2026 taxable income) |
| Places / availability | Not capped; QLD and NSW | 10,000 places a year; all states and territories |
| Price limits | Any house, townhouse or apartment on its own title in QLD or NSW; our fee is capped at the $1,000,000 rate | State and territory price caps by location |
| LMI at purchase | May apply when you buy later if deposit is under 20% | Usually avoided because the government contribution lowers your LVR |
| PublicSquare Rent-to-Own | Help to Buy | |
|---|---|---|
| How you get in | Rent with an option to buy; switch to a mortgage in years 4–8 | Buy now with a shared equity contribution from the government |
| Deposit at the start | No deposit; limited additional costs (legal advice, bond, signing fee and first 12 weeks of our fee) | Minimum 2% of the purchase price, plus stamp duty and buying costs |
| Who owns the home | An investor until you buy; you hold a call option | You, with the government holding up to 30% (existing) or 40% (new) |
| Weekly / ongoing cost | Market rent + an extra 50% on top (your deposit) + our weekly fee instalment | Principal and interest loan repayments; you pay rates, insurance and maintenance |
| Income limits | Assessed on capacity (no published hard income cap); all applicants under 50 | $103,000 single / $165,000 joint or single parent (FY 2026 taxable income) |
| Places / availability | Not capped; QLD and NSW | 10,000 places a year; all states and territories |
| Price limits | Any house, townhouse or apartment on its own title in QLD or NSW; our fee is capped at the $1,000,000 rate | State and territory price caps by location |
| LMI at purchase | May apply when you buy later if deposit is under 20% | Usually avoided because the government contribution lowers your LVR |
Who qualifies for Help to Buy?
To qualify you must be at least 18, an Australian citizen, and able to live in the home as your principal place of residence. You need a minimum 2% deposit and a loan from a participating lender. You generally cannot already own property in Australia or overseas (with limited exceptions for some single parents). You cannot combine Help to Buy with other shared equity, loan or guarantee schemes from a state or territory, though stamp duty concessions and grants can still apply.
Income is checked against your ATO Notice of Assessment for the previous financial year. For FY 2026 the caps are $103,000 for an individual applicant, or $165,000 for joint applicants and single parents. These thresholds are wage-indexed each year.
- 18 or older.
- All applicants must be Australian citizens.
- At least 2% of the purchase price as a deposit.
- You must live in the home; investment use and renting it out are not allowed while you are in the scheme.
- A place is reserved for up to 90 days after conditional approval (extendable by up to another 90 days in some cases).
What are the Help to Buy property price caps?
Your purchase price must be at or below the cap for the suburb and postcode. Caps differ for capital cities / regional centres and the rest of each state. Always confirm the exact suburb with Housing Australia's postcode tool before you offer.
| State / territory | Capital city / regional centre | Rest of state / other |
|---|---|---|
| New South Wales | $1,300,000 | $800,000 |
| Victoria | $950,000 | $650,000 |
| Queensland | $1,000,000 | $700,000 |
| Western Australia | $850,000 | $600,000 |
| South Australia | $900,000 | $500,000 |
| Tasmania | $700,000 | $550,000 |
| Australian Capital Territory | $1,000,000 | n/a |
| Northern Territory | $600,000 | $600,000 |
| State / territory | Capital city / regional centre | Rest of state / other |
|---|---|---|
| New South Wales | $1,300,000 | $800,000 |
| Victoria | $950,000 | $650,000 |
| Queensland | $1,000,000 | $700,000 |
| Western Australia | $850,000 | $600,000 |
| South Australia | $900,000 | $500,000 |
| Tasmania | $700,000 | $550,000 |
| Australian Capital Territory | $1,000,000 | n/a |
| Northern Territory | $600,000 | $600,000 |
How does Help to Buy work? A worked example
Housing Australia publishes this style of example on its Help to Buy page. On an $800,000 existing home with a 30% government contribution:
- Your deposit (2%): $16,000.
- Government contribution (30%): $240,000 — the government's equity share.
- Your loan from a participating lender: $544,000 (68% LVR).
- What you repay each month: principal and interest on the $544,000 loan.
- What you owe the government later: its share of the home's value when you sell or buy that share out — not a fixed dollar loan balance.
You also need cash for stamp duty (or any concession you qualify for), legal fees, inspections and moving. Those sit outside the 2% deposit. While you are in the scheme you must keep the home insured, live there, and take part in periodic reviews of your income and circumstances.
How does PublicSquare rent-to-own work?
With PublicSquare's rent-to-own homes, you find a home listed for rent that you'd love to buy, the owner agrees to rent it to you on a Rent-to-Own basis, and PublicSquare acts as your buyer's agent. You move in under a standard tenancy plus a call option deed. You pay market rent plus an extra 50% of your first-year rent on top — that extra amount becomes your deposit. From year 4 to three months before the end of year 8 you can switch to any mortgage and buy. For the full process, see How Rent-to-Own Works in Australia.
On a $750,000 home with $650 a week rent, the extra 50% is $325 a week. By the end of year 6 that has built a $101,400 deposit (about 10.1% of the contracted minimum price). The owner pays rates, building insurance, maintenance and utilities during the lease. There is no stamp duty or LMI at the start; those may apply when you buy. Run your own numbers on the Deposit Builder calculator.
- No deposit to move in. Getting pre-approved is free. Before you move in you pay for legal advice, the bond, the $325 + GST ($357.50) signing fee and the first 12 weeks of our fee, less the signing fee credit, plus moving costs.
- All applicants under 50; steady income; homes in Queensland or New South Wales on their own title.
- Price when you buy: higher of a contracted minimum (8% p.a. if you buy in year 4, stepping down to 4% in year 8) or an independent valuation.
- If you can't get finance: the Owner's Sell-Back Guarantee lets you request an open-market sale in years 4–8 and receive contributions back, less any shortfall and a fixed $3,300 marketing cost.
- PublicSquare's buyer's agency fee is spread over 260 weekly instalments with no interest. Apart from the $325 + GST signing fee, nothing is payable until your Contract with the owner is signed.
Is Help to Buy the same as the 5% Deposit Scheme?
No. The 5% Deposit Scheme (formerly the Home Guarantee Scheme / First Home Guarantee) is a government guarantee that helps eligible buyers borrow with a 5% deposit (or 2% for eligible single parents) without paying Lenders Mortgage Insurance. The government does not take an equity share. From 1 October 2025 it has no income caps and no annual place limit. Help to Buy is shared equity with income caps and 10,000 places a year. For that scheme set against Rent-to-Own, see 5% Deposit Scheme vs Rent-to-Own.
Which suits you: Help to Buy or rent-to-own?
Help to Buy may suit you if
- you meet the citizenship, income and property-ownership rules now;
- you can raise at least a 2% deposit plus stamp duty and buying costs;
- you are ready to buy a home under the price cap in your area;
- you are comfortable sharing ownership with the government until you buy out its share or sell;
- a participating lender will approve your loan and a scheme place is available.
PublicSquare rent-to-own may suit you if
- you want to move into a home in Queensland or New South Wales without a deposit;
- you can comfortably pay market rent plus the extra 50% each week;
- you plan to stay four years or more and buy with a mortgage in years 4 to 8;
- you are under 50 and would otherwise qualify for a mortgage later but not the Help to Buy income or deposit bar today;
- you want rent rises capped at 4% a year and the owner covering rates, insurance, maintenance and utilities during the lease.
Questions to ask before you choose
- Do I meet Help to Buy's income cap on my latest ATO Notice of Assessment?
- Can I fund a 2% deposit plus stamp duty, legal fees and moving costs in cash now?
- Is the home I want under the Help to Buy price cap for its exact suburb and postcode?
- Am I prepared for the government to own up to 30–40% of the home until I buy that share out or sell?
- If I cannot qualify for Help to Buy, can I sustain rent plus an extra 50% for several years?
- What happens if I cannot get a mortgage later — under Help to Buy, and under any rent-to-own contract?
- Have I had independent legal and financial advice on both paths?
When is rent-to-own not the right choice?
Rent-to-own is not automatically better than Help to Buy. It is usually the wrong fit if:
- You already qualify for Help to Buy and can fund the 2% deposit and buying costs. Buying now with shared equity is often simpler and cheaper over time than years of rent plus the extra 50%.
- You might move within a few years. PublicSquare's option opens in year 4, so short stays rarely make sense.
- You cannot see a path to a mortgage later. Every rent-to-own path ends with you borrowing to buy; no lender's decision can be guaranteed.
- You want the lowest possible weekly housing cost. Rent-to-own costs more each week than renting the same home, because part of each payment builds your deposit.
- You need a home outside Queensland and New South Wales. PublicSquare's program is not yet available in every state.
Frequently asked questions
Help to Buy is a shared equity scheme run by Housing Australia. Eligible buyers purchase with at least a 2% deposit and a loan from a participating lender, while the government contributes up to 30% for an existing home or 40% for a new home.
Sources
- 1.First Home Buyers (Housing Australia) — Australian Government Help to Buy Scheme
- 2.First Home Buyers — Help to Buy property price caps
- 3.Housing Australia — Applications now open for Help to Buy (5 Dec 2025)
- 4.Housing Australia — Australians begin moving into Help to Buy homes
- 5.Federal Register of Legislation — Help to Buy Program Directions 2025
- 6.First Home Buyers — Australian Government 5% Deposit Scheme (disambiguation only)
- 7.PublicSquare — How Rent-to-Own Works
- 8.PublicSquare — Rent-to-Own hub
Written by
Property Lead
Licensed agent · Former mortgage broker
Over 10 years’ experience as a mortgage broker and real estate agent, now a licensed buyer’s agent with PublicSquare since 2021. He has worked on 100+ property transactions and knows the Queensland and New South Wales markets and the Rent-to-Own model well.
Reviewed by
Founder & CEO
Licensed real estate agent
I started PublicSquare in 2021 to give homebuyers a real path to ownership without a deposit, and landlords a stronger-cashflow alternative to a standard rental. I hold real estate licences in Queensland and New South Wales and personally review every property that enters the program.
Free assessment and buyers’ guideNo obligation · No credit impact · Takes 2-mins
How this comparison was made
Written by Jarrod Wills (Property Lead) and reviewed for accuracy by Dean Arnold (Founder & CEO) before publishing. Program terms are quoted from PublicSquare's own Contract and Appointment documents, and market figures are referenced to the sources listed above. We check it again whenever the numbers change; it was last updated 27 October 2026.
For more information, visit our Editorial Guidelines.
Read more about Rent-to-Own.
This article is general information only and does not take your personal circumstances into account. PublicSquare is a licensed real estate agency, not a financial adviser or credit provider. Consider seeking independent advice before making a decision.