How do government shared equity schemes work in 2026?

Shared equity schemes can be a powerful way into the market, because the government takes a share of the purchase, reducing what you need to borrow. They also mean the government co-owns part of your home. Here is how they work and which schemes exist as at 2026.

How shared equity works

Under a shared equity scheme, the government contributes a portion of the purchase price in exchange for an equity share in the property. This reduces the deposit and the loan you need, lowering your repayments. The trade off is that the government owns a share, which you repay, usually based on the property value at the time, when you sell, refinance or buy the share back.

The federal Help to Buy scheme

The main national shared equity scheme in 2026 is the federal Help to Buy, administered by Housing Australia and launched in December 2025. Under it, eligible buyers can purchase with a deposit as low as 2 per cent, with the government contributing up to 40 per cent of the price for a new home or up to 30 per cent for an existing home, in exchange for an equity share.

Help to Buy eligibility

Help to Buy has income caps, set at 100,000 dollars for individuals and 160,000 dollars for joint applicants and single parents, and a limited number of places, with 10,000 available each year. It is for owner occupiers, with property price caps by state and territory. You apply through a participating lender. These details should be confirmed with Housing Australia.

You repay the government share

Because the government holds an equity share rather than lending you money, you do not pay interest on its contribution, but you do share any capital gain. When you sell or refinance, the government receives its proportionate share of the value at that time, and you can often buy the share back over time. So a rising market increases the value of the government share too.

State based shared equity

Some states have run their own shared equity schemes. In South Australia, shared equity options have been available through state channels such as HomeSeeker SA and the state home lending body. In Victoria, the Victorian Homebuyer Fund has closed to new applicants, with Victorians directed to the federal Help to Buy. State schemes vary and change, so check what currently applies where you are.

Weigh the trade off

Shared equity lowers your entry cost, but giving up a share of future capital growth is a real trade off, and the schemes have eligibility and property conditions. Whether shared equity suits you depends on your circumstances and your view of the trade off, so it deserves careful thought rather than being treated as free help.

Check current schemes and eligibility

Because shared equity schemes vary and change, with the federal scheme and differing state schemes, the useful step is to confirm what currently applies and whether you are eligible. A broker who works with participating lenders can help with the federal scheme, usually at no cost to you, and you should verify details with Housing Australia and your state authorities. This is general information, not advice.