Help to Buy Scheme South East Melbourne, What It Costs and Who Qualifies
If saving a full deposit feels like it keeps moving out of reach, Help to Buy is worth understanding properly. The federal shared equity scheme launched in December 2025, and for buyers in South East Melbourne it means the government co-purchases up to 40% of a new home or 30% of an existing one alongside you, which cuts the deposit you need and shrinks the loan you carry.
The scheme suits a specific kind of buyer: income below the threshold, a 2% deposit ready to go, and a property under the $950,000 price cap. In South East Melbourne that cap lands squarely in unit territory, since every approved suburb's house median sits above it. That is not a flaw in the scheme; it is the shape of the market, and knowing it upfront saves you a lot of searching.
Our team helps buyers across South East Melbourne work through which pathway actually suits their situation, comparing across 60+ lenders. The first home loan side of it is where most of the difference is made, because the scheme you are eligible for changes which lenders you approach and how they structure the application.
Key takeaways
- Help to Buy requires only a 2% deposit with no LMI payable.
- The price cap is $950,000 for every approved South East Melbourne suburb.
- Income caps are $103,000 single and $165,000 joint, indexed each July.
Is Help to Buy available in South East Melbourne?
Yes, Help to Buy is available across every approved suburb in South East Melbourne, and the price cap is $950,000 for all of them. That figure was confirmed using the Housing Australia postcode tool for every postcode in the approved list, from St Kilda and Prahran through to Cheltenham and Sandringham. Every suburb returns the Victorian capital-city cap with no variation between them.
Source: Housing Australia.
How does the Help to Buy scheme actually work?
Help to Buy is a shared equity arrangement. The federal government takes a co-ownership stake in your property, contributing up to 40% of the purchase price on a new home or up to 30% on an existing one. You buy the remaining share with your 2% deposit and a loan for the rest. Because the government's equity reduces the loan amount, no lenders mortgage insurance is charged, even though your deposit is well below the usual 20% threshold.
The equity stake is not a loan and does not attract interest. It sits on title alongside you. When you sell, or when you choose to buy the government's share back, they receive the same proportion of the sale price they originally contributed. If the property has grown in value, they share in that growth. If it has fallen, they share in that too.
The government's share can be bought back in stages, in increments of at least 5%, which means you can reduce the co-ownership over time as your equity grows and without needing to refinance the whole loan to do it. Seven participating lenders were listed as at launch, and the scheme is administered through Housing Australia rather than through any bank directly.
Most buyers we speak to focus on the 2% deposit and stop there. What actually decides whether the scheme suits them is the income cap and the price cap together, and in South East Melbourne those two constraints point quite clearly at the unit market rather than houses.
Evelyn Clark · Director, Mortgage & Finance Broker · Chat to Evelyn →
Who qualifies for Help to Buy in South East Melbourne?
The eligibility conditions are straightforward but strict. You must be an Australian citizen aged 18 or older, you cannot currently own any property in Australia or abroad, and your taxable income must sit below the published threshold. For the 2026-27 financial year that is $103,000 for a single applicant and $165,000 for a joint application or a single parent. Those caps are indexed to wages each 1 July, so they move annually.
What you will need to show a participating lender:
- › ATO Notice of Assessment: income is assessed on your most recent notice, not on current payslips.
- › Minimum 2% deposit: genuine savings, held for a demonstrable period.
- › No current property ownership: this includes overseas property and properties held in a trust or company where you have a beneficial interest.
- › Property price at or below $950,000: the cap applies to the purchase price, not a valuation.
- › Citizenship: permanent residents and temporary visa holders are not eligible; Australian citizens only.
Help to Buy cannot be combined with another government shared-equity scheme or guarantee. It can sit alongside the First Home Owner Grant and the state transfer duty concession, since those are not shared-equity arrangements. The Victorian Homebuyer Fund is closed to new participants, so for a South East Melbourne buyer the only shared-equity pathway currently available is this federal scheme.
Source: Housing Australia.
What does Help to Buy actually cost a buyer in South East Melbourne?
The 2% deposit on a $750,000 unit purchase is $15,000. The government contributes 30% on an existing home, meaning $225,000, and your loan covers the remaining $510,000. No LMI is charged on that loan because the combined deposit and government equity takes the LVR well below 80%. The government's contribution reduces over time as you buy back their share, but the cost of each buyback is a proportion of the market value at the time you make it, not the original purchase price.
You still pay standard purchase costs: state transfer duty on your share of the property, conveyancing, building inspection and any loan establishment fees. Transfer duty on a $750,000 purchase for a first home buyer in Victoria falls within the partial concession band rather than the full exemption, since the full exemption ceiling is $600,000. CoreLogic data shows unit medians in suburbs like Oakleigh at $580,000 and St Kilda at $512,000 sitting below or near that threshold, which is where the exemption and the scheme overlap most cleanly for first-time buyers here.
Source: CoreLogic (via YIP, June 2026) and State Revenue Office Victoria.
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How does Help to Buy compare to the other low-deposit pathways here?
Three schemes matter for buyers in South East Melbourne who cannot put down a standard 20% deposit. They work differently and serve different situations.
The options worth weighing:
- › Help to Buy: 2% deposit · government takes up to 40% equity · no LMI · income cap applies · citizens only
- › First Home Guarantee (5% Deposit Scheme): 5% deposit · government guarantees the gap · no LMI · no income cap · $950,000 price cap
- › Family Home Guarantee: 2% deposit · single parents only · no first-home-buyer requirement · no LMI · $950,000 price cap
Help to Buy offers the smallest deposit requirement, but the income cap and the citizenship condition are more restrictive than the First Home Guarantee. If your income sits above $103,000 as a single or $165,000 jointly, the First Home Guarantee is the more accessible route. The Family Home Guarantee is the right conversation if you are a single parent, whether or not this would be your first purchase.
When does Help to Buy not make sense for a South East Melbourne buyer?
The scheme does not suit everyone who is technically eligible. If your income is close to the threshold and you expect a pay rise or a strong bonus year, it is worth considering whether you will still qualify at the point the income assessment is run. The ATO Notice of Assessment used is from the prior financial year, so timing around income changes matters.
The co-ownership structure itself is also worth thinking through carefully. The government shares in any capital growth, which means a property that rises significantly in value means a more expensive buyback later. For a buyer planning to hold for twenty years and build equity aggressively, a slightly larger deposit through the First Home Guarantee, avoiding shared ownership entirely, may leave them in a stronger position over time. There is no wrong answer, but the difference between the two structures is real money over a long hold, and it is worth modelling before you commit.
Where I see buyers go wrong is treating Help to Buy as the automatic choice because the deposit is lower. The honest question is whether you want a co-owner on title, even a silent one, and whether the buyback cost works in your favour given the property type you are looking at.
Evelyn Clark · Director, Mortgage & Finance Broker · Chat to Evelyn →
How to apply for Help to Buy in South East Melbourne, step by step
Step 1: Talk to us
We work through your income, deposit and property budget to confirm which scheme actually suits your situation and whether Help to Buy is the right starting point or whether a different pathway gives you more flexibility.
Step 2: Confirm eligibility and match a participating lender
We check your ATO Notice of Assessment against the current income threshold, confirm you meet the citizenship and ownership conditions, and identify which participating lenders on the panel have capacity for Help to Buy applications.
Step 3: Prepare and submit the application
We gather your documents, structure the application correctly for the participating lender, and submit it. The lender coordinates with Housing Australia to register the government's equity stake on title.
Step 4: Manage approval through to settlement
We work with your conveyancer and the lender through to settlement, confirm the duty concession is applied where eligible, and keep you across any conditions that need to be satisfied before the keys are handed over.
What goes wrong when buyers apply for Help to Buy?
Where buyers lose ground:
- › Applying to a non-participating lender: Help to Buy is only available through Housing Australia's approved lender list. Approaching a lender not on that list means starting again, and each declined application sits on your credit file.
- › Income assessed on the wrong year: lenders use your ATO Notice of Assessment, not your current salary. A buyer who earned above the threshold in the prior year and dropped below it more recently may not qualify yet, even if today's income is under the cap.
- › Assuming houses are in scope: every house median across the approved South East Melbourne suburbs sits above the $950,000 cap. Buyers who search for houses and then try to apply will find the scheme does not reach them. Units are the realistic target here.
- › Confusing Help to Buy with the First Home Guarantee: the two schemes have the same price cap locally but very different structures. Treating them as equivalent means the buyer does not understand what they are agreeing to when co-ownership goes on title.
Frequently Asked Questions
Can I use Help to Buy in South East Melbourne if I earn just over the income cap?
No, the income threshold is a hard cap assessed on your prior-year ATO Notice of Assessment. If your income sits above $103,000 single or $165,000 jointly, the First Home Guarantee is the more accessible low-deposit alternative.
Can Help to Buy buyers in South East Melbourne also access the First Home Owner Grant?
Yes, the Victorian First Home Owner Grant of $10,000 can be used alongside Help to Buy for eligible new homes under $750,000. The grant and the duty concession are not excluded by Help to Buy, only other shared-equity schemes are.
Is Help to Buy or the First Home Guarantee better for a South East Melbourne unit buyer?
The First Home Guarantee suits buyers who want full ownership from day one and can save 5%. Help to Buy suits those who can only reach 2% and accept co-ownership on title. The deciding factor is usually the deposit available, not the income level.
Do I have to buy back the government's equity share, and when?
You are not required to buy the government's share back by a fixed date. You can buy it back in stages of at least 5% at market value, or the government's share is settled when you sell the property.
Can permanent residents use Help to Buy in South East Melbourne?
No, Help to Buy is open to Australian citizens only. Permanent residents are not eligible, though they can access the First Home Guarantee and, where eligible, the First Home Owner Grant and duty concessions.
Should I use a mortgage broker or apply directly for Help to Buy?
A mortgage broker, every time. The scheme runs through a small list of participating lenders, and which of them suits your income structure and credit profile is not obvious without comparing them. A broker who has access to the participating lenders does that comparison for you.
Your Next Steps
Getting the right scheme in place before you start inspecting saves you from falling for a property the wrong pathway cannot reach. Help to Buy, the First Home Guarantee and the Victorian duty concession can work together in the right circumstances, and understanding which combination suits your deposit, income and property type is what turns an eligible buyer into an approved one.
If Help to Buy is on your radar, the next step is simple. Get in touch with the EverLend team or call 03 7036 3356. We'll work through where you stand across our 60+ lender panel and confirm which pathway gives you the strongest position.
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External Resources
EverLend · South East Melbourne · Ever Lend Pty Ltd (ACN 625 080 515), authorised under Australian Credit Licence 517192 · General information only - this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.
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