Help to Buy is the Australian Government's shared equity scheme: an eligible buyer puts in a 2% deposit, a participating lender funds the loan, and the government takes up to 30% of an existing home or 40% of a new one as equity, repaid when the owner buys it back or sells. Applications opened on 5 December 2025 with 10,000 places a year. Queensland runs its own, Boost to Buy, with a 2% deposit, up to 30% equity on a new home and 25% on an existing one, on a property up to $1 million. Neither pays for a second home on land the applicant already owns: both are for buying a home to live in, and both exclude anyone who owns property. Where they fit the backyard story is the next generation: a child buying their own place with the scheme instead of staying in the family backyard, or a parent selling the big house and buying smaller with a granny flat arrangement on the side.
Help to Buy, the federal scheme
| Rule | What the scheme says |
|---|---|
| Deposit | At least 2% of the purchase price |
| Government equity | Up to 30% of an existing home, up to 40% of a newly built home |
| Income | Taxable income at or below $103,000 for a single applicant, $165,000 for single parents and joint applicants, on the previous year's notice of assessment (2026 financial year), indexed each year |
| Who | Australian citizens aged 18 or over, alone or with one other person, who do not own or beneficially own any property in Australia or overseas |
| What | A new or existing house, townhouse, unit or duplex at or below the price cap for the location, or vacant land with a signed building contract with an eligible builder |
| Living there | Owner occupied for the life of the scheme; no renting it out |
| Places | 10,000 a year, through participating lenders, not through Housing Australia directly |
| Leaving | Incremental repayments, buying out the government's share, or selling; the government shares gains and losses in proportion |
Boost to Buy, the Queensland scheme
Queensland Treasury's scheme works the same way with its own numbers: a 2% deposit on a property valued up to $1 million, a government equity contribution of up to 30% on a new home and 25% on an existing one, half of all places reserved for regional Queensland, and applications only through the approved lender, Unity Bank. On 30 September 2026 Treasury said round two's South East Queensland allocations were exhausted and regional places remained. A buyer cannot hold both schemes at once; Help to Buy excludes anyone getting state shared equity help.
Why neither funds a granny flat
Both schemes buy a home. The applicant must not already own property, must live in the home bought, and in Help to Buy's case must not rent it out. A block owner adding a second home owns property, is not buying one, and often wants to rent it. So the money for a second home comes from cash, equity or a construction loan, as finance for a factory-built home sets out.
Where the schemes meet the backyard
- The kids. An adult child under the income cap with a 2% deposit can buy their own first home through either scheme. That is the alternative to a second home in the parents' yard, and for some families it is the better one. For others the backyard home is the deposit-saving step that comes first.
- The parents. A parent who sells the family home and moves into a second home on a child's block does not use these schemes, but the arrangement has its own rules: the ATO exempts a written, non-commercial granny flat arrangement from capital gains tax, and Services Australia assesses it for the pension. Tax covers the exemption.
- Vacant land. Help to Buy will fund a block with a building contract. A small new home on a small lot is a new home for the scheme's 40% share. The makers on this site build homes that fit that description.
See it for your block
- Compare homes by installed price
- Homes for sale measured for a second home
- Finance for a factory-built home
Questions people ask next
Can Help to Buy pay for a granny flat?
No. Help to Buy is for buying a home to live in, with a 2% deposit and a government equity share of up to 30% or 40%. Applicants must not own any property and must occupy the home. A second home on land already owned is funded by cash, equity or a construction loan instead.
What are the Help to Buy income limits?
Taxable income at or below $103,000 for a single applicant and $165,000 for single parents and joint applicants, on the previous financial year's notice of assessment for the 2026 year, indexed each year, as published on the scheme's site in October 2026.
What is Queensland's Boost to Buy?
The state's shared equity scheme: a 2% deposit on a property up to $1 million, government equity of up to 30% on a new home or 25% on an existing one, half the places reserved for regional Queensland, applications through Unity Bank. South East Queensland places in round two were exhausted as at 30 September 2026.
- Australian Government, Help to Buy scheme (deposit, equity, income, eligibility, places, what can be bought), read 16 October 2026
- Australian Government, first home buyer programs (Help to Buy applications opened 5 December 2025), read 16 October 2026
- Queensland Treasury, Boost to Buy (deposit, equity, price, regional places, round two status), read 16 October 2026
- ATO, granny flat arrangements and CGT, read 16 October 2026