Rent-to-Buy Schemes in Australia: Government vs Private

Rent-to-buy schemes explained

A rent-to-buy scheme lets you rent a home with the right to buy it later. Part of what you pay, or what you save while renting, goes towards your deposit, and you switch to a mortgage when you are ready. Government schemes and private rent-to-own homes both use this idea, but the rules, costs and protections are very different.

Most rent-to-buy arrangements combine a residential lease with an option to buy: a right, but not an obligation, to purchase the home at a price or price formula agreed at the start. They are different from vendor finance, where you agree to buy the home now and pay the seller in instalments.

Government rent-to-buy schemes in Australia

Yes, in South Australia. Rent to Own, run through HomeSeeker SA and the SA Housing Trust, is the only government rent-to-buy scheme we found that is open to private renters. Western Australia's government options, through Keystart, are low-deposit and shared ownership home loans rather than rent-to-own. The other state programs are for people already living in public or social housing.

South Australia's Rent to Own

It grew out of the SA Housing Trust's Rent to Buy pilot of 125 homes. The government has committed to up to 2,000 purpose-built Rent to Own homes, and you register your interest to be invited to apply as new projects are released.

• You pay 75% of the market rate in rent, so you can save the difference towards your deposit.
• The price is locked in when you sign the lease and sale agreement, so it does not change while you prepare to buy.
• Applicants are pre-qualified on their capacity to buy the home at the end of a two-year lease.
• The homes are new and purpose-built, released project by project.

You may be eligible if you live in South Australia, are an Australian citizen or permanent resident, have a job or run a business, are currently renting, do not own property, will live in the home, and meet HomeSeeker SA's income and asset limits.

Western Australia: Keystart loans, not rent-to-own

WA has no government rent-to-own scheme for private renters. Its help comes through Keystart, the State Government's home lender, which lends with a 2% deposit and no lenders mortgage insurance. You buy the home from day one, so these are low-deposit loans, not rent-to-buy.

• The Low Deposit Home Loan has a 2% deposit, a property price limit of $860,000, and income limits of $155,000 for singles or $228,000 for couples and families ($225,000 and $285,000 in the Kimberley and Pilbara).
• Under the Shared Ownership Home Loan, the Housing Authority co-owns part of the home and charges no rent or interest on its share. You pay all rates, insurance, strata levies and maintenance, and can buy more shares when you can afford to. Price limit $720,000; income limits $128,000 for singles and $197,000 for couples and families. It is the closest WA option to rent-to-own, but you own your share from day one.
• The Urban Connect Shared Equity Home Loan is for new apartments, townhouses, villas and small-lot new builds up to $800,000. The Housing Authority contributes up to $250,000 towards the price, with the same income limits as Shared Ownership.
• Jalbi Jiya in Broome is a $9.7 million government-funded program run by Nyamba Buru Yawuru, with 25 homes for working Aboriginal families who rent long-term with support towards buying. It is a genuine rent-then-buy pathway, but it is local, all homes are allocated, and it is not open to the general public.

Keystart limits as announced on 15 April 2026. Check keystart.com.au for current settings before you apply.

Buying your Department of Housing home: options for public housing tenants

Other states help existing social housing tenants buy the home they live in, rather than offering rent-to-buy to the wider public:

• In Queensland, public housing tenants may be able to buy their home with a Queensland State Housing Loan (minimum deposit $2,000, household income up to $141,000) or a shared equity loan for 60% or more of it. On Palm Island, a rent-to-buy scheme will let residents buy up to 300 council-owned social homes.
• In New South Wales, eligible tenants can apply to buy their Homes NSW social house at market value. Homes NSW states that rent-to-buy and shared equity arrangements are not available under that policy.
• In the ACT, Housing ACT offers sale-to-tenant and shared equity options to eligible public housing tenants.
• In Western Australia, under the Rental Sales Scheme, eligible Department of Housing and Works tenants can apply to buy their public housing home, with finance pre-approval from a bank or Keystart.

Help to Buy and the 5% Deposit Scheme aren't rent-to-buy schemes

No. Both help you buy a home on day one with a smaller deposit and a home loan from a participating lender. You never rent the home first, so you need the deposit, stamp duty and buying costs in cash at the start. For the 5% Deposit Scheme set against Rent-to-Own on the same home, see 5% Deposit Scheme vs Rent-to-Own.

Help to Buy is a shared equity scheme: the government owns a big chunk of your house and shares in its growth. It has 10,000 places a year and income limits of $103,000, or $165,000 for joint applicants and single parents. For Help to Buy set against Rent-to-Own, see Help to Buy vs Rent-to-Own. The 5% Deposit Scheme has no income caps or limit on places, but the home must sit under a price cap for its area. For upfront costs side by side, see How to Buy a Home With No Deposit in Australia.

How private rent-to-buy homes work

A private owner holds the home, you lease it, and you hold an option to buy it later. On top of rent you usually pay an option fee or a contribution, which is meant to become your deposit. Everything else depends on the contract, so two private programs can look nothing alike.

The details to compare between providers:

• The weekly payment can be market rent plus a contribution, or a single higher payment with no clear split.
• The purchase price can be fixed at the start, set by a growth formula, or the market value when you buy.
• Your extra payments may be credited to you as a deposit, held in trust, or kept by the owner if you don't buy.
• Who pays rates, insurance and maintenance during the lease.
• What happens if you can't get a mortgage when the option opens.

Legal Aid NSW and the Consumer Action Law Centre warn that some rent-to-buy and vendor terms deals charge above-market payments, leave buyers paying rates and repairs on a home they don't own, and keep everything paid if the buyer can't complete.

PublicSquare's Rent-to-Own program

You find a home listed for rent in Queensland or New South Wales that you'd love to buy, and apply for it through the property manager. When the owner is interested, PublicSquare acts for you as your buyer's agent, and once your Contract is signed, you move in as the tenant with a Call Option Deed. You pay the listed rent plus an extra 50% of your first-year rent on top, and at any time in years 4 to 8 you can switch to a mortgage and buy the home. For every step, read How Rent-to-Own Works in Australia.

• Rent is reviewed once a year by the property manager's rental appraisal, with increases capped at 4% or the legal maximum, whichever is lower.
• The owner pays rates, building insurance, maintenance and body corporate during the lease. You pay your own utilities, as in any rental.
• Your price is the higher of a contracted minimum or an independent valuation. The minimum grows by 8% a year if you buy in year 4, stepping down to 4% a year in year 8. These rates apply to houses; apartments may have lower rates in the contract.
• If you can't get finance in years 4 to 8, the Owner's Sell-Back Guarantee lets you request an open-market sale and receive your contributions back, less any unpaid amounts and any shortfall. You pay 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.

Government vs private rent-to-buy: the difference

The government scheme gives you cheaper rent for a short time on a new home, and you build the deposit yourself. A private program like PublicSquare's gives you a longer runway and builds the deposit for you through an extra 50% on top of the rent, in exchange for a higher weekly payment.

What each option costs

Here is how the deposit builds under each model, using example rents. Your own figures will depend on the home and the rent.

Under SA Rent to Own, on a home with a market rent of $550 a week, you would pay $412.50, keeping $137.50 a week. Banked every week, that is $14,300 after two years. You then need a home loan for the rest of the locked-in price.

Under PublicSquare's Rent-to-Own, on a $750,000 home you pay $650 a week rent plus an extra 50% of $325 a week on top, plus PublicSquare's weekly fee instalment. By the end of year 6 the extra 50% has built $101,400, about 10.1% of the contracted minimum price. Use the Deposit Builder calculator to see your own numbers.

Upfront, PublicSquare's program has no deposit. Getting pre-approved is free. Before you move in you pay for legal advice, the bond, the $357.50 signing fee and the first 12 weeks of PublicSquare's fee, less the signing fee credit, plus moving costs. On Standard, the first 12 weeks of the fee are $913.85 for a $650,000 home and $1,066.15 for an $800,000 home. There is no stamp duty or LMI at the start; those costs may apply when you buy.

Rent-to-buy rules in each state

The rules differ by state. Victoria has had its own rules for rent-to-buy arrangements on residential land since 1 March 2020. In Queensland and New South Wales, PublicSquare's program runs on standard state tenancy agreements and an option deed.

In Victoria, the rules depend on who offers the arrangement and how it is structured. Arrangements offered by Homes Victoria or a registered housing association are treated differently, and others need to meet specific requirements, such as holding payments in trust and giving buyers a right to cancel with a refund. Consumer Affairs Victoria explains the rules and the penalties that can apply.

Rent-to-own through PublicSquare is available only in Queensland and New South Wales.

Questions to ask any rent-to-buy provider

1. Who owns the home, and is the lease or option registered or protected in any way?
2. How is the purchase price set, and can it go up?
3. Where does my extra payment go, and do I get it back if I can't get a mortgage?
4. Who pays rates, insurance and repairs during the lease?
5. What happens if the owner sells or refinances the home?
6. When can I buy, and what happens if I am not ready by the end?
7. Is the deal legal in my state, and will an independent solicitor review it?

When a rent-to-buy scheme isn't the right choice

Rent-to-buy suits people with steady income who could service a mortgage but don't yet have the deposit. It is the wrong fit if any of these apply:

• You already have a deposit of 5% or more and qualify for a government scheme. Buying now is usually cheaper over time.
• You might move soon. SA's scheme runs two years and PublicSquare's option opens in year 4, so both suit people planning to stay.
• You can't see a path to a mortgage. Every rent-to-buy scheme ends with you borrowing to buy, and no lender's decision can be guaranteed.
• You want the lowest weekly housing cost. A private program costs more each week than renting the same home, because part of each payment builds your deposit.
• The contract is unclear. If you can't tell where your money goes or how the price is set, walk away.

Written by

Jarrod Wills

Buyer's Agent

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

Dean Arnold

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.

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.