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If you've been to a few Saturday inspections lately, you already know the feeling. You're standing in a townhouse in Preston or a unit in Coburg, doing quick mental maths while someone else is measuring the lounge with their eyes. You've saved hard, your borrowing power is close, yet the gap between 'almost' and 'we can actually do this' still feels stubbornly wide.
That's where the Australian Government's Help to Buy Scheme can be a real option for some Melbourne buyers. It's not a free ride, and it's not a shortcut around the usual contract risks. It's shared equity, which means the Government chips in for part of the purchase price and takes a matching share in the property's value.
Below is a practical, Melbourne grounded guide to how it works, what it changes in your conveyancing, and the things to sort out before you put your name on a contract.
What 'Help to Buy' Is (and What It Isn't)
Help to Buy is a federal shared equity scheme administered by Housing Australia. You buy the home in your name, you live in it, and you take out a home loan with a participating lender. The Government contributes up to 30 per cent of the purchase price for an existing home or 40 per cent for a newly built home, and you contribute at least two per cent as your deposit.
A Few Quick Reality Checks
It's not a grant. The Government's contribution is tied to a share of the home's value, so it gets repaid when you buy them out or when you sell.
It's not an investor scheme. You must live in the property as your principal place of residence.
It doesn't make conveyancing 'simpler'. In some ways, it adds extra steps at settlement, so timing and paperwork matter even more.
Help to Buy opened for applications on 5 December 2025, with applications made through participating lenders (initially Commonwealth Bank and Bank Australia, with more expected to join later).
How the Shared Equity Part Works
Think of it like buying a home with a quiet partner who doesn't move in, doesn't pay the bills, and doesn't argue about paint colours… but does share in the value.
You repay your bank loan the normal way (regular repayments to the lender).
You don't make monthly repayments to the Government, and you don't pay rent or interest on the Government's share while you live there.
You can buy back some of the Government's share over time (in steps) or pay it out when you sell. The amount you pay is based on the property's value at the time you make that buyback.
That last point matters. If your home rises in value over the years (which, in Melbourne, it often can), buying back the Government's share later can cost more than it would have earlier. If values drop, the share can be worth less too. Shared equity cuts your mortgage size upfront, yet it also means you're sharing the future ups and downs.
Who Can Use Help to Buy (The Eligibility Points Buyers Trip Over)
Most people focus on the deposit and forget the rest. The big eligibility basics include:
You must be at least 18 and an Australian citizen.
Your taxable income must be at or below $100,000 for an individual applicant, or $160,000 for joint applicants and single parents (based on the previous financial year's notice of assessment).
You can't currently own property in Australia or overseas (with some limited exceptions noted for some single parents in specific circumstances).
You must live in the home as your principal place of residence while you're in the scheme.
You generally can't stack Help to Buy with other government shared equity or guarantee style support aimed at buying (you can still access Victorian stamp duty concessions and grants if you qualify).
There are also ongoing obligations once you're in, like keeping the home insured, maintaining it, and participating in reviews (including providing updated income details and notifying certain changes).
If you're unsure, that's normal. The eligibility picture often depends on the exact purchase and your circumstances, not a general vibe of 'we should be fine'.
The Property Price Caps: What They Mean in Melbourne
Help to Buy comes with location based price caps. In Victoria, the published caps are:
$950,000 for a capital city or regional centre (this is the bucket most Melbourne buyers fall into, and it commonly includes Geelong).
$650,000 for the rest of Victoria.
That doesn't mean $950,000 suddenly feels 'cheap' in Melbourne. It does mean the scheme is designed to cover a good slice of the unit and townhouse market, plus some family homes further out, depending on the suburb and what the market is doing that month.
A practical tip: don't just shop at the top of the cap because you can. Leave room for stamp duty (if payable), conveyancing, inspections, moving costs, and a buffer. The scheme helps with the purchase price. It doesn't pay for life.
Costs You Still Need to Budget for in Victoria
Even with a two per cent deposit, you still need to cover the usual buying costs. In Victoria that often includes:
Land transfer duty (stamp duty). Many Help to Buy applicants will be first home buyers, so Victorian concessions can be very relevant. As a guide, eligible first home buyers may pay no duty up to $600,000 and a reduced amount between $600,001 and $750,000 (with conditions and eligibility rules).
Conveyancing and legal work. Reviewing the Section 32, contract conditions, title, planning matters, and settlement requirements still matters, no matter how you're funding the purchase.
Building and pest (where relevant). Especially in older Brunswick weatherboards or properties with extensions that 'looked fine' during a ten minute inspection.
Lender costs and valuation fees. Valuations become a theme with shared equity, since buybacks and sale events depend on value at the time.
Insurance. Insurance is not optional in the scheme, and it needs to be factored into affordability from day one.
The Part Most Buyers Miss: Shared Equity Rules That Can Shape Your Future Plans
This is where we see people get caught out, usually after they've fallen in love with a property.
You're Buying a Home to Live In, Not a Flexible 'Maybe We'll Rent It Out'
Help to Buy is for owner occupiers. If you're thinking, 'We'll live there for a year, then rent it out when we upsize', pause and get advice before you commit. Owner occupation is not a side detail in this scheme.
Buying Back the Government's Share Is a Strategy, Not an Afterthought
You can buy back the Government's share in increments or in full, and the buyback price is tied to the property's value at that time.
In plain terms: if your plan is 'we'll just buy them out later', it's worth thinking through what later looks like. New jobs, parental leave, rate rises, childcare, a renovation… life changes the plan.
The Scheme Can Require Action as Your Position Improves
Some lender guidance notes that buybacks may be voluntary over time or may be required as your financial position improves.
That's not a reason to avoid the scheme. It's a reason to enter with eyes open and a realistic budget.
Selling Is Straightforward, Yet You Need to Understand the Payout Mechanics
When you sell, the Government receives the value of its share at that point.
So your sale proceeds don't all come to you, and that can affect your next purchase plans. A good conveyancer can help you map the moving parts early so settlement day isn't full of nasty surprises.
What the Buying Pathway Looks Like in Melbourne with Help to Buy
The scheme adds a few extra steps around finance and settlement. The smoother your prep, the calmer your purchase.
Step One: Get Assessed Before You Go 'Serious' House Hunting
You apply through a participating lender, who assesses you and submits the application. You can't apply directly to Housing Australia.
Once you have conditional approval, you generally have a limited window to find a home and sign a contract (the scheme materials refer to up to 90 days).
That timing is worth keeping in mind if you're the sort of buyer who likes to watch the market for six months before making a move. You may want to line up your ducks, then apply.
Step Two: Choose the Right Contract Strategy for the Way Melbourne Is Sold
Melbourne has two common buying lanes:
Private sale. You can often include a subject to finance clause, negotiate settlement dates, and request contract changes (depending on the vendor's appetite). This lane suits Help to Buy buyers because it gives you breathing room.
Auction. At auction, you're usually signing an unconditional contract. No cooling off, no subject to finance safety net. That doesn't mean Help to Buy and auctions can't mix, yet it does mean you need your finance preparation and contract review done early, not the night before.
We've seen buyers try to treat auction day like a 'see how we feel' moment. That's how people end up owning a contract they didn't fully understand.
Step Three: Section 32 and Contract Review, with Scheme Friendly Timing
In Victoria, the Section 32 statement is where a lot of the real story sits: title details, easements, zoning, outgoings, owners corporation information, and any disclosures. With shared equity in the background, it's even more important to spot:
- special conditions that clash with your finance timeline
- short settlement periods that don't leave enough time for scheme documents
- penalties or unusual default clauses
- owners corporation issues (common with inner city apartments) that lenders can be picky about
This is the point where a quick review can save you weeks of stress.
Step Four: Settlement Has an Extra Moving Piece
Once you're ready to buy, your conveyancer guides you through signing, paying the deposit, and coordinating the legal steps. Then, because the Government is contributing funds, there's extra documentation involved.
The scheme information explains that Housing Australia's conveyancer will contact you before settlement and arrange the signing of required documents, including a second mortgage taken to enable participation in the scheme.
That extra party doesn't have to make settlement difficult, yet it does mean you want everyone aligned early: lender, your conveyancer, the vendor's conveyancer, and Housing Australia's side.
A Note on Off the Plan Buys
Off the plan purchases can work under Help to Buy (subject to the scheme rules and the lender's own policies).
In Melbourne, off the plan contracts can have long timeframes, sunset clauses, and valuation risk at completion. If you're eyeing a new apartment in the CBD or a townhouse project in the inner north, get the contract checked carefully and talk through how the scheme timing and your finance approval will line up with a delayed settlement.
A Quick Word on Confusion with Older Victorian Schemes
Victoria previously ran the Victorian Homebuyer Fund, another shared equity style programme. It's now closed to new participants.
Help to Buy is a separate federal scheme, with its own rules and documents. If you've been Googling at midnight (we've all done it), this is one reason search results can look messy.
Where a Conveyancer Makes This Easier (and Safer)
A lot of buyers think conveyancing is 'paperwork at the end'. In reality, your best protection is often before you sign anything.
Here's what we're usually doing for Help to Buy buyers around Melbourne:
- Reviewing the Section 32 and contract, then translating it into plain English
- Flagging clauses that create risk for your finance timeline or settlement
- Helping you set the right conditions (where the sale method allows it)
- Liaising with lenders and the other side's conveyancer so deadlines don't sneak up
- Preparing for settlement with the added scheme documents and parties involved
- Making sure you understand your ongoing obligations in a practical way, not in legal jargon
It's also emotional support, if we're being honest. Buying can feel like a sprint through a maze, especially when you're juggling trams, inspections, work, and family life at the same time.
Two Melbourne Scenarios We See a Lot
Scenario One: The Almost Auction in Northcote
A buyer loves a renovated two bedroom house, plans to bid at auction, and assumes the scheme works like a normal loan pre approval. Then they learn the scheme has extra steps at settlement and that their contract needs a careful look before auction day. The fix is usually simple: get the contract reviewed early, confirm your finance position with the participating lender, and decide whether auction is still the right lane for you.
Scenario Two: The 'Starter' Apartment Near the CBD
A couple targets an apartment with an owners corporation, a few special conditions, and a short settlement. The scheme can still work, yet the lender's requirements and the scheme documentation timing need to be lined up. A contract review and a realistic settlement plan can turn it from stressful to manageable.
Ready to Take the Next Step?
If Help to Buy is on your radar, the best time to get advice is before you sign, not after. Pearson Chambers Conveyancing can guide you through the scheme specific conveyancing steps, review your contract conditions, and help you buy with confidence in the Victorian market.