Australia’s Help to Buy shared equity scheme has launched in 2026, giving eligible first home buyers the ability to purchase a property with a deposit as low as 2 percent – with the Federal Government taking an equity stake of up to 40 percent in your home. This is a genuinely significant development for Perth buyers who have been priced out of the market despite strong incomes.
But before you sign up, you need to understand what you are actually agreeing to. This guide gives you a complete, honest breakdown of how the Help to Buy scheme works, what it costs you in the long run, how it compares to the existing 5% Deposit Guarantee, and who it genuinely suits in Perth’s current market.
The Help to Buy scheme is a Federal Government shared equity program. Under this scheme, the government purchases a co-ownership stake in your property — up to 30% for an existing home and up to 40% for a new build. You then own the remaining equity and take out a mortgage only for your share.
The key numbers for Perth buyers in 2026:
The scheme is administered through Housing Australia, and applications are processed through approved lenders.
Pros of the Help to Buy Scheme
Cons – Read These Carefully
The two main schemes available to Perth first home buyers in 2026 serve different buyer profiles:
The current Perth metropolitan price cap for Help to Buy is $850,000. This limits the suburbs where the scheme is viable in practice. Areas where properties are regularly available under $850,000 in early 2026:
Properties in Scarborough, Duncraig, Karrinyup, and other established northern suburbs are above the $850,000 price cap and therefore ineligible under Help to Buy. In those suburbs, the First Home Guarantee at $850,000 cap remains the more appropriate scheme.
The Help to Buy scheme adds a layer of complexity that makes professional broker guidance particularly valuable. The scheme involves three parties – you, your lender, and Housing Australia – and the application must satisfy all three simultaneously.
Help to Buy is a Federal Government shared equity program where the government purchases 30-40% of a property, reducing your deposit to 2% and mortgage to your share only, with Perth’s price cap at $850,000 – follow updates on Strawberry Finance articles for the latest insights.
Eligibility requires: Australian citizen, first home buyer, income under $100,000 single or $160,000 couple, property under $700,000 in metropolitan Perth, intending to owner-occupy. You must not currently own property in Australia. Approved lenders assess standard credit and serviceability on your share of the loan
It depends on your situation. If you have less than 5% saved and income below the Help to Buy limits, the 2% deposit requirement makes Help to Buy more accessible. However, if you can manage 5% and your income is above the Help to Buy limit – or you want to retain 100% of your capital gains – the First Home Guarantee is almost always the better long-term financial outcome.
Yes. The FHOG WA ($10,000 for eligible new or substantially renovated homes) can generally be used in conjunction with Help to Buy. Your broker will confirm specific lender policies on grant stacking, as not all approved lenders treat this combination identically.
You can buy out the government’s equity stake partially or fully at any time, at the current market value of that equity share. Most buyers plan to do this incrementally as their income and equity grow over 5 to 10 years. When you sell the property, the government receives its proportional share of the sale proceeds.
We’ll compare all available first home buyer schemes and recommend the right one for your situation. Free consultation
Note: This article is intended to provide general information only. It does not take into account the financial situation, objectives, or needs of any individual reader and must not be relied upon as financial product or credit advice. While every effort has been made to ensure the accuracy of the information provided, some details may change over time or may not always reflect the most current market conditions. Readers should consider seeking independent financial or professional advice before making any financial decisions based on this information.
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