The Australian Government Help to Buy Scheme

KEY TAKE OUTS:

• What is the Help to Buy Scheme?

• Am I eligible for the Help to Buy Scheme?

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Have you been wanting to get into the property market but feel like it’s out of your reach because of financial factors – prices are high, your savings are short of what is needed, and your income is low to mid earnings?  

Of course you have, because after all, owning your own home has always been the great Australian dream. 

Well do we have some news for you …  

Have you heard of the Help to Buy Scheme? It’s the latest Federal Government initiative that’s been passed into law by Parliament. Essentially, it’s where you can co-purchase a property with the Government. 

ELIGIBILITY:

In order to be eligible for the Federal Government Help to Buy Scheme, you must meet the following criteria: 

• You must be an Australian Citizen 

• You must be at least 18 years of age 

• You must reside in the property purchased 

• You must undergo and satisfy a financial capacity test which does just, it tests your capacity to purchase property without the help offered under the scheme 

• If you are a sole Purchaser, your yearly income must be less than $90,000 

• If you are purchasing as a couple, your combined yearly income must be less than $120,000 

• You cannot currently own any other property anywhere in the world 

NEW SOUTH WALES HOME BUYERS:

Here are the key factors for home buyers in New South Wales to consider (in bullet points, because let’s face it, it’s way easier to read): 

• Whilst recently passed through the Federal Government, the scheme won’t be available until NSW passes their own legislation which allows the program to operate here. How long will that take you ask? I mean, how long is a piece of string? 

• Price caps will apply. For capital and regional centres, the cap is $950,000 and for the rest of the state, it’s $750,000 

• The deposit required by you is a minimum of 2% of the price of the property 

• If you have owned a property in past, you are still eligible 

• There will be a limited number of places available under the scheme each year 

• This scheme cannot be utilised if you are already utilising a similar NSW Government scheme 

• The Government will contribute up to 30% of the purchase price for existing properties and up to 40% for new properties 

• You will pay the mortgage taken out over your share of the property but won’t need to pay rent on the Government’s share 

• In order to be eligible when purchasing a property off the plan, the build must be completed within 24 months of you entering into the Contract to purchase it 

• You can take out a mortgage for your share of the property, but only from one of the ‘approved lenders’ 

• Reviews will happen each year, so, if there is a change to the value of the property or to your income, this may result in an adjustment of the share held by the Government or a termination of the arrangement altogether 

• Upon sale of the property, the Government is entitled to a portion of any capital gain (calculated based on their share of the property) 

 

CONCLUSION

Coutts have a team of experienced Solicitors and Conveyancers that understand the law and the legislation that governs it.