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You are here: Home » Blog » Government Budgets » Help to Buy home scheme expanded; income and price caps increased (March 2025 Federal Budget Update)
Published on 26 March 2025
by Drew Pflaum
Categories: Government Budgets
The Government will increase its equity investment in the Help to Buy scheme to $6.3 billion (up $800 million), and increase the income and price caps.
Under this shared equity loan scheme, the Commonwealth will provide an equity contribution up to 40% of the purchase price to assist up to 40,000 eligible first home buyers to purchase a new or existing home.
The Government said it will increase the scheme’s income cap from $90,000 to $100,000 for individuals, and from $120,000 to $160,000 for joint applicants and single parents.
The property price caps for eligible homes will also be increased and linked with the average house price in each state and territory, not dwelling price, so first home buyers have more choice. For example, the NSW capital city and regional centre price cap will be set at $1.3 million (rather than at the median house price of approximately $1.5 million) to ensure purchase prices remain within the borrowing capacity of first-home buyers. The cap will be $800,000 for NSW outside the capital city and regional centres.
The Minister for Housing, Claire O’Neil, said first home buyers on average rates with a $519,000 home will save about $900 per month when buying an existing home, and $1,200 per month when buying a new home.
Commonwealth legislation to establish the Help to Buy program was enacted on 10 December 2024, and the Help to Buy scheme is expected to be open for applications later in 2025, following registration of the Program Directions, passage of State legislation, and implementation by Housing Australia.
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