Dreaming of building your own home in Victoria? The federal Help to Buy Scheme could be the opportunity you’ve been waiting for. This guide explains how the initiative can help you secure a brand-new home with a much smaller deposit.
Launched in late 2025, the Help to Buy scheme allows eligible home buyers to receive a government contribution of up to 40% toward the purchase price of their property, with increased property price and income caps designed to broaden eligibility.
What is the Help to Buy Scheme in Victoria?
Launched on 5 December 2025, the scheme is designed to support around 10,000 Australians each year—up to 40,000 over four years—on their path to home ownership. One of the biggest advantages is that eligible buyers may be able to purchase a home with as little as a 2% total deposit.
At Melbourne Homes, we only require a $2K* deposit, and when combined with the low deposits offered by participating land developers under the scheme, you could start building your new home and have it completed in under 20 weeks.
Can You Build a New Home Using Help to Buy?
Yes. Under the scheme, the Australian Government contributes toward the purchase price of your home. In exchange, the government takes a proportional equity share in the property.
Building a new home? The government may contribute up to 40% of the purchase price, helping reduce your upfront costs and making home ownership more accessible.
Benefits of Help to Buy for New Home Buyers
- No Lenders Mortgage Insurance (LMI): One of the biggest advantages is avoiding LMI. Because the government contributes part of the purchase price, eligible buyers don’t need to pay this often expensive insurance—saving you thousands.
- Lower Monthly Mortgage Repayments: With the government holding an equity share in your home, your loan amount is smaller. This can mean more affordable and manageable monthly repayments.
Flexible Repayment of the Government’s Share
You have options when it comes to repaying the government’s contribution. You can gradually buy back their share as your financial situation improves, or repay it in full when you sell your property.
Who Is Eligible for Help to Buy in Victoria?
To qualify for the Help to Buy Scheme in Victoria, you’ll need to meet several key criteria:
- Citizenship: You must be an Australian citizen aged 18 or older.
- Individuals: Annual taxable income must be $100,000 or less.
- Joint applicants or single parents: Combined annual taxable income must be $160,000 or less.
- Property Ownership: The scheme is aimed at first-home buyers or those who haven’t owned property in some time. You must not currently own land or property in Australia or overseas.
- Principal Place of Residence: The home must be your main residence and cannot be used as an investment property.
- Participating Lender: Your home loan must be through an approved lender, currently Commonwealth Bank of Australia or Bank Australia.
Property Price Caps in Victoria
The Help to Buy Scheme also sets price limits depending on the location of the property:
- Melbourne & Geelong: Homes can be priced up to $950,000.
- Regional Victoria: Homes in other areas can be priced up to $650,000.
With these benefits and eligibility options, the Help to Buy Scheme can make building a new home with Melbourne Homes a more achievable pathway to home ownership.
How Melbourne Homes Can Help You Navigate the Help to Buy Scheme
The Help to Buy Scheme is a fantastic opportunity to step onto the property ladder and build your new home with Melbourne Homes. Our team is here to support you through every stage of the journey, helping you understand the process and making the path to homeownership as smooth as possible.
