06 July 2026 - Written by Lawrence Liang
More First Home Buyers Can Now Benefit as the Help to Buy Scheme Expands from 1 July 2026
If you have been trying to save for a home deposit in Victoria, you are not alone. Rising property prices across Melbourne and regional areas have made it harder than ever for first home buyers to bridge the gap between what they have saved and what they need to buy. The Australian Government's Help to Buy scheme was designed to help with exactly that, and it just got bigger.
From 1 July 2026, 10,000 new places are available for the 2026-27 financial year across all states and territories, alongside increased income eligibility thresholds to support more Australians into home ownership.
Since the scheme launched, Help to Buy has received more than 7,200 applications. The strongest demand is in Victoria, followed by New South Wales and Queensland.
This article explains the new income caps from 1 July 2026 and how the numbers work in practice under the Help to Buy.
What are the income caps for Help to Buy from July 2026?
Taxable income limits have risen to $103,000 for single applicants and $165,000 for joint and single-parent applicants. Previous income limits were $100,000 and $160,000.
Your income is assessed based on your most recent ATO Notice of Assessment for the previous financial year, which for 2026-27 applications means your FY2026 tax return.
What are the property price caps in Victoria for the Help to Buy scheme?
For buyers in Victoria, the current property price caps are:
Victoria, capital city and regional centre: $950,000
Victoria, other areas: $650,000
How Does Help to Buy Work in Practice? Jess's Story
The numbers can be easier to understand with a real example. Here is how the scheme worked for Jess, a first home buyer in Melbourne's eastern suburbs.
Jess purchased a unit in Melbourne's eastern suburbs for $600,000 through Help to Buy. Her purchase was structured as follows:
Jess's deposit (2%) $12,000
Home loan from her lender (68%) $408,000
Government contribution (30%) $180,000
Total purchase price $600,000
Because the government contributed 30 per cent of the purchase price, Jess only needed to borrow 68 per cent from her lender rather than the full amount. This reduced her loan repayments significantly and meant she did not need to pay Lenders Mortgage Insurance.
At a variable rate of 6 per cent per annum on a 30-year loan term, Jess's monthly interest on her $408,000 loan is approximately $2,040. For context, if she had been paying more than $470 per week in rent, owning a home through Help to Buy could cost her less per month than continuing to rent.
What this means for Jess:
She was able to own her home with a $12,000 deposit rather than waiting years to save a standard 10 to 20 per cent deposit
She avoided paying Lenders Mortgage Insurance
Her loan interests may be lower than her previous rent
She can begin building equity in a property she owns rather than contributing to someone else's mortgage
Pro Tip: While you can buy as little as 2 per cent deposit, it is recommended that you have an additional cash buffer of $5,000 to $10,000 set aside before you purchase. This covers the upfront costs of buying a property that are separate from your deposit, including conveyancing fees, land title registration fees and other government charges. These costs are payable at or before settlement and are not covered by the scheme.
How Do I Find Out If I Am Eligible and What I Can Borrow?
Eligibility for Help to Buy depends on your taxable income, your deposit amount, the property price and the location of the property. Your maximum borrowing power under the scheme also depends on your individual financial circumstances, including your income, existing debts and living expenses.
The best starting point is a conversation with a mortgage broker who has experience with the Help to Buy scheme. They can assess your eligibility and calculate your maximum borrowing capacity under the scheme before you commit to anything.
Want to find out if Help to Buy is the right pathway for you? Book an obligation-free call with our preferred mortgage partner here.
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The information contained in this article is provided for general informational and educational purposes only. It does not constitute legal, financial, or professional advice and must not be relied upon as such.
This information has been prepared without taking into account your individual objectives, financial situation, or needs. You should consider whether the information is appropriate to your personal circumstances and seek independent professional advice before taking any action based on this content. While every effort has been made to ensure the accuracy of the information, no responsibility is accepted for any errors, omissions, or reliance placed on this material.