For many Australians, owning a home is a dream achievement and with the Victorian Governments Help to Buy Scheme, that dream could be one step closer to becoming a reality.

What is the Help to Buy Scheme?

The Help to Buy scheme is a government backed program that allows eligible homebuyers to purchase a property with a significantly smaller deposit. Instead of requiring buyers to save the traditional 20%, the government contributes a portion of the purchase price in exchange for an equity stake in the property.

Under the scheme:

• - The government can contribute up to 30% of the purchase price for existing homes.
• - For new builds, the contribution can be up to 40%.
• - Buyers typically need as little as a 2% deposit.

This means participants take out a smaller mortgage, reducing both their loan size and monthly repayments, creating more of an opportunity to get into the housing market.

Understanding shared equity

Shared equity means the government owns a portion of your property alongside you. For example, if the government contributes 30% toward the purchase price, it will retain a 30% stake in the home.

Over time, homeowners have the option to buy out the government’s share when financially ready, or repay the equity portion upon selling the property

If the property increases in value, the government shares in that gain. Likewise, it also shares in any loss if the property value decreases.

Who is eligible for the Help to Buy Scheme?

The scheme is targeted primarily at low income earners who may need assistance to enter the housing market. While exact eligibility criteria can vary and conducting your own research is recommended, key requirements typically include:

• - Being an Australian citizen or permanent resident
• - Meeting income caps as a single or couple purchaser
• - Purchasing within specified property price limits
• - Living in the home as an owner-occupier

Importantly, the scheme is generally limited to a set number of places per year, meaning demand can exceed availability.

Benefits of the Scheme

The Help to Buy initiative offers several advantages such as a lower deposit requirement, reduced mortgage repayments, and no lenders mortgage insurance.

For many buyers, this can mean the difference between continuing to rent and finally owning a home.

Is the Help to Buy Scheme the right choice?

The Victorian Government’s Help to Buy scheme represents a significant step toward improving housing affordability. By lowering upfront costs and reducing borrowing pressure, it provides a practical pathway into homeownership. 

However, like any financial decision, it’s important to consider both the short-term benefits and long-term implications. For the right buyer, the scheme can be a powerful tool, but it’s essential to fully understand how shared equity works and what it means for your future.

Initiatives like the Help to Buy Scheme highlight the role governments can play in supporting first-home buyers. While it may not be a one-size-fits-all solution, it offers a promising opportunity for many Victorians to take that first step onto the property ladder. It’s important to look into what the Victorian Government has to offer in terms of housing affordability, and see which schemes could best suit you and your situation.

Still unsure? Visit the Arramont Sales Centre and talk to the team about purchasing land, and building your new dream home.

Publish date April 13, 2026