Help to Buy is the federal shared-equity scheme administered by Housing Australia and established by the Help to Buy Act 2024. Under the program, the Commonwealth takes an equity contribution of up to a published maximum percentage of the home's value, secured by a second mortgage. Conveyancing a Help to Buy purchase involves more than a standard transaction: a Commonwealth-held interest registers on title, the first mortgage lender must be a participating lender, contract wording needs to be program-aware, and a wider range of post-settlement events (renting, renovating, refinancing) can trigger a payback or transfer of equity. This guide covers what conveyancers actually need to check at each stage.
What Help to Buy is — and how the equity contribution works
Help to Buy is a Commonwealth shared-equity scheme established under the Help to Buy Act 2024 (Cth) and operated by Housing Australia (the federal housing finance corporation established under the Housing Australia Act 2018, which also runs the Home Guarantee Scheme). Eligible buyers acquire a home with the Commonwealth contributing a published percentage of the purchase price as equity, secured by a second mortgage on the property. The buyer takes out a market-rate first mortgage with a participating lender for the balance.
Key design features (consult the current Housing Australia Help to Buy page for the live settings):
- Equity contribution percentages are published by Housing Australia. The contribution is typically higher for new homes than for established homes; verify current maxima on the program page. - Price caps apply by state and city/regional area, and are reviewed periodically. Properties above the cap are ineligible. - Income caps apply per applicant and per couple. Income is broadly assessed on the taxable income reported in the most recent ATO Notice of Assessment. - Eligibility requires the buyer to be an Australian citizen aged 18 or over, not currently own residential property, and use the home as their principal place of residence. - Deposit required is at least a published minimum, with the balance covered by the first mortgage and the Commonwealth equity contribution (see Housing Australia — Help to Buy for the current minimum deposit percentage). - Repayment of the Commonwealth contribution is on a proportional-share basis — the Commonwealth's repayment amount on sale or buy-out is calculated as a percentage of the current market value, not the original contribution amount.
Help to Buy is delivered jointly with the states under the Help to Buy Act 2024 (Cth) and corresponding state legislation that authorised state participation. Take-up rolled out progressively across jurisdictions; check the program page for current state availability and any state-specific overlays.
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Before contract — eligibility, price cap and lender participation
Conveyancers should request and verify the following documents from the buyer before exchange:
Pre-approval letter from Housing Australia. The buyer's eligibility for the program is confirmed in writing before they shop. The letter sets out the equity-contribution percentage and any conditions. The conveyancer should sight this and confirm it matches the proposed contract price.
Participating lender first-mortgage approval. Help to Buy is delivered via a panel of participating lenders. A first-mortgage approval from a non-participating lender is incompatible with the scheme. Confirm the lender is currently on the published participating-lender list on the Housing Australia website.
Price-cap and property-type confirmation. The property must be at or under the published price cap for its state and area. Off-the-plan and house-and-land purchases have separate rules — the cap applies to the all-in contract price.
Income cap verification. Housing Australia conducts its own income assessment. The conveyancer's role is generally to confirm the buyer holds a current eligibility letter, not to re-perform the income check.
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Contract clauses that need to be program-aware
Standard state contract forms (REINSW, REIV, REIQ and equivalents) do not specifically contemplate Help to Buy. Two areas typically need attention:
Finance clause / subject-to-finance. The contract should be conditional on both the first mortgage approval and Housing Australia equity-contribution approval. Where Housing Australia approval is in principle and final terms are issued close to settlement, the finance clause should accommodate both moving pieces.
Settlement timing. Settlement requires simultaneous participation by the first mortgage lender and Housing Australia (or its agent). Some participating lenders coordinate the entire settlement; others require explicit liaison. Confirm the settlement workflow with the lender early.
Some jurisdictions and lenders also require a specific acknowledgement deed signed by the buyer at or before settlement, acknowledging the program terms. This is in addition to standard mortgage and contract documentation. Confirm what is required for your state and participating lender.
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At settlement — second mortgage registration and the title picture
On a Help to Buy settlement the final title position typically shows:
- The buyer as registered proprietor. - The participating first mortgage lender as first registered mortgagee. - The Commonwealth (or its designated holding entity) as second registered mortgagee, securing the equity contribution.
The Commonwealth's second mortgage is what gives the program its enforcement teeth. Without it the Commonwealth would have only a personal claim against the buyer for breach of program rules — with it, the Commonwealth has registered security over the property itself.
Practical checks at settlement:
- Confirm the second mortgage is lodged in the correct form for your state's land titles office. Each Torrens jurisdiction has a slightly different mortgage form. - Confirm the registration order — first mortgage before second mortgage — and the priority is clearly captured. - Ensure the buyer signs all required Housing Australia program documents at or before settlement, and that originals or certified copies are returned to the program as required. - Account for the equity-contribution funds correctly in the settlement statement. Treatment differs slightly depending on whether Housing Australia disburses funds directly at settlement or via the participating lender.
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Post-settlement — events that trigger payback or transfer of equity
The buyer's obligations to the Commonwealth do not end at settlement. The program rules trigger payback or buy-out events including:
Sale of the property. On sale, the Commonwealth's share is repaid out of sale proceeds at the proportional share of current market value. Conveyancing the eventual sale therefore needs to coordinate first mortgage payout, Commonwealth payout, and any remaining buyer equity.
Ceasing to use as principal place of residence. Renting the property out (other than narrow exceptions, such as short absences with Commonwealth consent) generally requires payback. If a buyer plans to move overseas, take a long secondment, or convert to investment use, this needs program engagement first.
Income exceeding ongoing thresholds. In some implementations, ongoing income thresholds apply after settlement and a sustained breach can trigger a partial or full buy-out obligation. Verify whether ongoing income testing applies under the current rules.
Voluntary buy-out. The buyer can buy out the Commonwealth's share over time, in defined increments, at the relevant current-market-value share. This is a separate conveyancing transaction with its own documentation requirements.
Renovations beyond a value threshold. Material renovations require Commonwealth consent. The Commonwealth's share is calculated on market value, so a buyer who renovates without consent can find the program rules engage in unexpected ways. Conveyancers advising on a planned renovation should flag this risk.
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Refinancing a Help to Buy loan
Refinancing the first mortgage is technically possible but constrained. The new lender must either:
- Be a participating Help to Buy lender, and assume the original first mortgage priority position with the Commonwealth retaining its second mortgage; or - Allow the Commonwealth second mortgage to remain in place behind the new first mortgage (requires Commonwealth consent).
Conveyancers should not assume a standard refinance pack will work for a Help to Buy property. Engage the participating lender and Housing Australia early.
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Interaction with stamp duty concessions and First Home Owner Grants
A Help to Buy buyer is purchasing the entire property — the Commonwealth equity contribution is treated as an equity interest secured by mortgage, not a partial purchase. As a consequence, dutiable value for state transfer duty purposes is generally the full contract price (subject to state revenue office confirmation), and the buyer is responsible for transfer duty on the full price.
First home buyer transfer duty concessions, the federal First Home Owner Grant (for new homes), and Help to Buy are designed to be combinable where the buyer is otherwise eligible. The conveyancer should confirm:
- Whether the state offers a first home buyer transfer duty exemption or concession at the contract price. - Whether the buyer qualifies for the state First Home Owner Grant for a new home (eligibility differs by state). - That Housing Australia's program rules do not preclude any combined incentive (current rules generally do not, but verify).
For a wider read on related schemes, see our companion articles on First Home Guarantee 5% deposit settlement and federal vs state housing measures 2025-26. To find a conveyancer experienced with Help to Buy purchases, browse conveyancers in Sydney, Melbourne and Brisbane.
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FAQ
Q: My client's first home buyer transfer duty exemption applies — does it still cover a Help to Buy purchase? A: Generally yes, where the buyer is otherwise eligible for the state first home buyer concession. The Help to Buy structure does not exclude state duty concessions, though the state revenue office will assess on the full contract price. Confirm with your state revenue office for the specific concession your client is claiming. Q: Can a couple where one party owns property elsewhere apply for Help to Buy? A: Generally no — the program requires that neither applicant currently owns residential property. Past ownership that has been disposed of is treated differently to current ownership; check the current eligibility settings carefully. Q: What if the buyer wants to add a granny flat after settlement? A: The granny flat is a renovation that changes the value of the property the Commonwealth shares equity in. Above the published renovation-value threshold, Commonwealth consent is required. Below the threshold, no consent is required but the higher value is reflected in any future buy-out or sale calculation, which can increase the Commonwealth's eventual repayment share. Q: Can a foreign citizen access Help to Buy? A: No. The program is restricted to Australian citizens. Permanent residents and other visa holders are ineligible. This is set out in the Help to Buy Act 2024 and supporting program rules. Q: Is Help to Buy available in every state? A: Availability depends on state participation. The program rolled out progressively across jurisdictions as states passed their enabling legislation. Confirm current state availability on the Housing Australia program page before advising the buyer.---
Sources
- Housing Australia — Help to Buy program: housingaustralia.gov.au/help-buy - Help to Buy Act 2024 (Cth): legislation.gov.au — Help to Buy Act 2024 - Housing Australia Act 2018 (Cth): legislation.gov.au — Housing Australia Act 2018 - Australian Government Treasury — Housing measures: treasury.gov.au — housing - State revenue offices — for current transfer duty concessions: - NSW: revenue.nsw.gov.au - VIC: sro.vic.gov.au - QLD: qro.qld.gov.au - WA: revenuewa - SA: revenuesa.sa.gov.au - TAS: sro.tas.gov.au - ACT: revenue.act.gov.au - NT: nt.gov.au — territory revenue office - State law societies / find a conveyancer: lawcouncil.org.au
Information in this article is general and current as at 19 May 2026. Equity-contribution percentages, price and income caps, and state availability change as the program is reviewed. Verify current settings on the Housing Australia page before advising your client.
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