Help to Buy WA: Buy a Home with as Little as a 2% Deposit

How Does the Help to Buy Scheme Work?

The Help to Buy Scheme is a shared equity arrangement between you and the Australian Government. You contribute a minimum 2% deposit, obtain a home loan from a participating lender, and the Government contributes up to 30% (existing home) or 40% (new home). You own and live in the property as your principal place of residence.

The Government's contribution:

• Is interest-free.
• Does not require regular repayments.
• Can be bought back over time if your circumstances improve.
• Is repaid when you sell the property or refinance out of the scheme.

Key Benefits of the Help to Buy Scheme

• ⌛ Buy Sooner, many buyers can enter the property market years earlier by needing only a 2% deposit.
• ↘️ Borrow Less, the Government contribution reduces the amount you need to borrow from the bank.
• 🛟 Avoid Lenders Mortgage Insurance, by lowering your effective loan-to-value ratio, many participants may avoid costly LMI premiums.
• ✨ No Interest on the Government Contribution, unlike traditional borrowing, the Government's equity contribution is interest-free.

Who Is Eligible?

• Citizenship, an Australian citizen, at least 18 years old.
• Income Limits, single applicants: taxable income of $100,000 or less; couples and single parents: combined taxable income of $160,000 or less.
• Property Ownership, not currently own any property in Australia or overseas (some exceptions for single parents).
• Occupancy, the property must be your principal place of residence; investment properties are not eligible.
• Property Price Caps, for WA, Perth and major regional centres up to $850,000; other areas up to $600,000.

What Properties Can Be Purchased?

• Established homes.
• Newly built homes.
• Townhouses.
• Units and apartments.
• Duplexes.
• Vacant land combined with a qualifying construction contract.

What Costs Are Not Covered?

• Stamp duty (if applicable).
• Settlement and conveyancing costs.
• Building and pest inspections.
• Valuation fees.
• Mortgage registration fees.
• Home and building insurance.
• Any other purchase-related expenses.

Important Things to Know

The Help to Buy Scheme has a limited number of places available each year. Applicants cannot participate in multiple government shared equity schemes simultaneously. Before making offers on properties or attending auctions, buyers should obtain both lender and scheme approval.

Is Help to Buy Right for You?

The Help to Buy Scheme can be an excellent solution for buyers who have a stable income but are struggling to save a traditional deposit. However, because the Government shares in future property value growth, it's important to understand both the benefits and long-term implications before proceeding.

Not sure which scheme fits? Our first home buyer guide for WA compares the options, and the maximum purchase price calculator shows what you could afford under each.