From July 1, 2026 the federal Help to Buy scheme raised its income caps to $103,000 for singles and $165,000 for couples, with 10,000 new places for the 2026-27 financial year. Here is what changed and who it brings into range.
From 1 July 2026, the federal Help to Buy shared equity scheme increased its income eligibility caps to $103,000 for single applicants and $165,000 for joint applicants and eligible single parents, alongside 10,000 new places for the 2026-27 financial year. Housing Australia has confirmed the change applies across every state and territory, following Tasmania's addition in June that completed the scheme's national rollout. For buyers who checked their eligibility earlier this year and missed out on the old thresholds, this is worth another look.
Help to Buy previously capped taxable income at $100,000 for single applicants and $160,000 for joint applicants or single parents. Both thresholds have now risen, giving more first home buyers room to qualify:
Housing Australia has reported strong early uptake since the scheme launched, with more than 7,200 applications received and around 4,800 of those applicants already settled into a home or under contract. The higher caps are intended to keep the scheme in step with wage growth so it continues reaching the buyers it was designed for.
Help to Buy is a shared equity scheme, not a lump sum grant. The government contributes a share of the purchase price alongside you, which reduces both your deposit requirement and the size of the loan you need to service:
Because the government's share typically brings your loan below 80 percent of the property value, most buyers using Help to Buy avoid lenders mortgage insurance entirely. You do not pay rent on the government's portion, but when you sell or refinance out of the scheme, the government receives the same proportion of the sale proceeds it originally contributed.
The extra $3,000 to $5,000 of headroom is a meaningful shift for buyers sitting just above the old thresholds. A couple earning a combined $162,000, for example, was previously locked out under the $160,000 joint cap and is now within range under the new $165,000 limit. The same applies to single applicants earning between $100,000 and $103,000.
It is worth remembering that Help to Buy's income caps remain considerably lower than the Australian Government's separate 5 percent Deposit Scheme (formerly the First Home Guarantee), which removed its income caps entirely from October 2025. The two schemes suit different situations: Help to Buy reduces your loan size through shared equity, while the 5 percent Deposit Scheme lets you buy with a small deposit while borrowing the full purchase price and avoiding lenders mortgage insurance. Comparing both against your own numbers is a more useful exercise than assuming one is universally better.
Use these tools to see how the updated Help to Buy caps and other schemes compare for your situation: