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

The Australian Government’s Help to Buy Scheme Has Arrived in Western Australia

 

Saving a large deposit is one of the biggest challenges facing first home buyers. The Australian Government’s Help to Buy Scheme aims to make home ownership more accessible by allowing eligible buyers to purchase a home with as little as a 2% deposit.

Under the scheme, the Government contributes up to 30% of the purchase price for an existing home or 40% for a newly built home, helping reduce the amount you need to borrow and potentially eliminating the need for Lenders Mortgage Insurance (LMI).

At Mesh Finance, we can help you understand whether the Help to Buy Scheme is right for you and guide you through the application process.

How Does the Help to Buy Scheme Work?

The Help to Buy Scheme is a shared equity arrangement between you and the Australian Government.

Here’s a simple example:

  • You contribute a minimum 2% deposit.
  • You obtain a home loan from a participating lender.
  • 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.

Unlike a traditional loan, 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.

Because the Government owns a percentage share of the property, their contribution increases or decreases in value based on the property’s future market value.

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 (LMI)

By lowering your effective loan-to-value ratio, many participants may avoid paying costly LMI premiums.

✨No Interest on the Government Contribution

Unlike traditional borrowing, the Government’s equity contribution is interest-free.

Who Is Eligible?

To qualify for the Help to Buy Scheme, applicants generally must:

Citizenship
  • Be an Australian citizen.
  • Be 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 may apply for single parents.
Occupancy Requirements
  • The property must be your principal place of residence.
  • Investment properties are not eligible.
Property Price Caps

The property must fall within the Government’s price cap limits.

For Western Australia:

  • Perth and major regional centres: up to $850,000.
  • Other areas: up to $600,000.
What Properties Can Be Purchased?

Eligible properties include:

  • Established homes.
  • Newly built homes.
  • Townhouses.
  • Units and apartments.
  • Duplexes.
  • Vacant land combined with a qualifying construction contract.
What Costs Are Not Covered?

While the Government contributes towards the purchase price, buyers are still responsible for:

  • 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

 
Limited Places Available

The Help to Buy Scheme has a limited number of places available each year. Once allocations are exhausted, new applicants may need to wait for future rounds.

You Cannot Combine with Other Shared Equity Schemes

Applicants cannot participate in multiple government shared equity schemes simultaneously.

Pre-Approval Is Important

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.

At Mesh Finance, we can help you:

  • Check your eligibility.
  • Understand how much you could borrow.
  • Compare participating lenders.
  • Structure your purchase correctly.
  • Navigate the application process from start to finish.
Ready to Find Out If You Qualify?
 

If you’d like to explore whether the Help to Buy Scheme could help you purchase your first home sooner, contact the Mesh Finance team today.
📞 BOOK IN A CALL HERE

We’ll assess your situation, explain your options, and help you determine the most suitable path into home ownership. More infomation can also be found here – https://www.wa.gov.au/organisation/department-of-treasury-and-finance/help-buy-scheme-revenuewa