“The government’s 30% stake is equity rather than a loan. This means their share grows proportionally with the value of your property.”
When you purchase under Help to Buy with a 30% government equity contribution, the Australian Government holds a 30% beneficial interest in your property. This is registered on your title. You live in the property as the sole occupant and have full rights to use and modify it — but you do not hold full beneficial ownership until you buy out the government’s share.
What the government’s 30% means day-to-day
Nothing changes about how you live in the property. You pay all rates, maintenance, and insurance. The government does not charge rent on its equity share and does not charge interest. Your mortgage is on the 70% you own outright — so your monthly repayments are calculated on that portion only.
What it means when property prices rise
If you buy at $700,000 and sell at $850,000, the government receives 30% of $850,000 — that is $255,000. Not 30% of the $210,000 it originally contributed — but 30% of the full sale price. On a property that grows in value, the government’s share appreciates alongside yours. This is the structural cost of the lower deposit and smaller loan.
Buying out the government’s share
You can buy out the government’s equity in tranches of at least 5% at any time. Each buyout is based on a market valuation at the time — not the original purchase price. If the property has increased in value, buying out later costs more per percentage point than buying out earlier.
The long-term equity comparison
A borrower who enters via the First Home Guarantee at 5% owns 100% of their property from day one and builds equity on the full value. A Help to Buy purchaser builds equity only on their 70% share until buyout is complete. For buyers who intend to hold the property long-term and use it as a wealth-building asset, understanding this distinction before applying is important.
→ You may wish to speak with a licensed mortgage broker to assess your personal circumstances. This is general information only. Individual circumstances vary and scheme details change regularly. Verify current eligibility, caps, and terms with official sources before making decisions. Speak with a licensed mortgage broker for advice tailored to your situation. All loans are subject to lender approval.
Sources: Housing Australia, Australian Government Help to Buy Scheme — Equity and Buyout (firsthomebuyers.gov.au); ASIC MoneySmart, Shared Equity Schemes 2025; National Consumer Credit Protection Act 2009.
