Australia’s long-awaited Help to Buy shared-equity scheme opens on 5 December 2025. Under the program, Housing Australia will take up to a 40% stake in newly built homes (30% for existing homes) to help low-to-middle-income and first-home buyers. Eligible buyers (with incomes up to $100k single/$160k joint) need only a 2% deposit. Over four years, there are up to 40,000 places available. The scheme is initially offered through the Commonwealth Bank and Bank Australia, with other lenders to join later. Once a borrower secures pre-approval, their spot is reserved, and they have 90 days to find a qualifying home.
Boost to House Buyers and Outer Suburbs
As buyers’ agents, we see this program greatly expanding the pool of people who can afford a home. First-home buyers who once felt priced out of detached houses can now consider stand-alone homes in outer suburbs and regional growth corridors. For example, Brisbane, the Gold Coast and Sunshine Coast have a $1.0 million cap, and Melbourne/Geelong has $950k cap. These caps mean many outer-city areas fall within the scheme. In practical terms, suburbs like Melbourne’s west or Brisbane’s growth corridors (with homes under $1m) will attract new buyers. Even Sydney has a high cap ($1.3m) covering many properties. Demand is likely to tilt back towards houses rather than apartments, since new homes get the highest 40% equity boost.
Market Competition and Investor Trends
Many analysts warn that the scheme will intensify competition at the entry level. With only 10,000 places a year, the demand for spots is expected to be fierce. Shared equity will effectively boost buyers’ spending power – potentially lifting prices in more affordable markets as well. We’ve already seen buyers flock to lower-priced suburbs: for instance, outer-growth areas like Tarneit (Melbourne’s west) have recorded huge sales volumes (over $1.11 billion in recent transactions) as people chase value. First-home entrants under Help to Buy will add to that demand. Meanwhile, since the scheme is only for owner-occupiers, savvy investors may pivot to markets where competition is softer or yields are higher.
In regions like WA and Queensland, investors have recently been very active, taking up large shares of new lending. Overall, supply of new builds could expand as builders target the 40% equity benefit – but tight listing conditions mean any surge in demand will have an immediate impact on prices.
Tips for Buyers
Given the lender limits, it’s wise to start early. Only CBA and Bank Australia offer Help to Buy at launch, so arranging finance quickly is crucial. Our advice: get pre-approved to lock in your place, then work with a buyer’s agent to identify homes that fit within your price cap and other incentives (like first-home grants or stamp duty concessions). Target areas just under the cap – for example, Brisbane suburbs priced up to $1m or Melbourne’s fringe under $950k. We also suggest prioritizing houses where possible, as detached homes typically offer stronger long-term gains and rental yield. Remember, buyers who use Help to Buy cannot double-dip into other government schemes, so plan your mix of support accordingly. Suburbs with very limited new supply but strong population growth should be on your radar (our Brisbane and Melbourne teams can highlight hotspots). Ultimately, the scheme is a powerful pathway for buyers to enter sooner, but competition will be high. Ready to explore Help to Buy opportunities? Contact Key2Dreamz for expert guidance. Call us at +61 439 260 917 or book a free consultation with our buyer’s agents today. For more on how this fits with broader trends, don’t forget to follow us on LinkedIn and Instagram.