Will you qualify for the 2024 Help to Buy scheme?

The Help to Buy scheme is a major election promise of the Albanese government aimed at helping 40,000 Australians buy their first home.

Created for low and middle-income Australians, the scheme is an equity-sharing program where the government can contribute a significant sum towards a home purchase.

The sum can be up to 40 per cent of the value of a new home and up to 30 per cent of the value of an established home, which will cover the majority of the deposit.

Deposits are usually required to be 20 per cent of the home’s value, and raising that amount can be very difficult in the current economic climate. However, if you’re eligible for the scheme, you will only be expected to come up with a deposit of two per cent.

• States will need to pass their own legislation in order for Help to Buy to operate in their jurisdiction.  
• Help to Buy will operate in the territories following passage of Commonwealth legislation.  
• All states agreed at National Cabinet to progress legislation so the Scheme will run nationally from 2024

Once a start date is announced, the scheme will be open to a total of 40,000 Australians, at 10,000 a year. It is based on income, with low to middle-income earners being eligible. This means that if you earn up to $90,000 a year as a single or up to $120,000 as a couple, you may be eligible to buy a home with only a two per cent deposit.

The following criteria will also apply:

• You also have to be an Australian resident
• You can’t currently own a home or have a share in a residential property
• You have to be eligible for a standard home loan

• NSW: Capital city and regional centres: $950,000. Rest of state: $600,000.
• VIC: Capital city and regional centres: $850,000. Rest of state: $550,000
• QLD: Capital city and regional centres: $650,000. Rest of state: $500,000
• WA: Capital city and regional centres: $550,000. Rest of state: $400,000
• SA: Capital city and regional centres: $550,000. Rest of state: $400,000
• TAS: Capital city and regional centres: $550,000. Rest of state: $400,000
• ACT: $600,000
• NT: $550,000

The Help to Buy scheme sees the government acting as an investor of sorts.

If you successfully apply for this scheme, the government will hold equity in your home.

This doesn’t mean they have control over your life on the property, but it does mean that when you sell, they are entitled to a slice of the sale, equating to the percentage they contributed.

So the drawback is that your profits won’t be as high when you sell as they would be if you purchased independently.

However, the options exist to buy a higher stake in the house from the government as time goes on or buy them out completely.

Ready to buy a home this year? Talk to your local Professionals representative today.