Help to Buy Shared Equity
Understand government shared equity, participating lender checks and the difference between Help to Buy and a home loan guarantee.
Shared equity is not a cash grant
Help to Buy requires a minimum 2% deposit. The Government contributes up to 30% of an existing home or 40% of a newly built home in exchange for an equity interest. A participating lender assesses and finances the remaining mortgage; this is not a guarantee that leaves you owning all the equity.
A smaller mortgage does not make the government contribution free money. When you sell or buy back the government share, the amount depends on the scheme rules and property value, not simply the original cash contribution.
Check eligibility before choosing a property
Location-based price caps, income and residency requirements, property use and participating-lender requirements must all be checked against the official scheme. Eligibility for a scheme is separate from a lender finding the remaining loan affordable.
The official published Victorian caps are $950,000 for the capital-city/regional-centre category and $650,000 elsewhere. Do not use the higher cap for every Victorian property. Confirm your address and current cap with a participating lender.
Questions worth asking before committing
Who pays rates, insurance, repairs and improvements? How is the government share valued when you sell or make a voluntary repayment? What happens if your household income changes? Read the participant agreement before signing.
Do not assume all XLOANS panel lenders participate, or that shared equity can be combined with another guarantee. We can discuss your options, but scheme finance must go through a participating lender.
This page is general information only and not financial advice. Lending criteria, rates and government schemes change — speak to an XLOANS broker for advice tailored to your situation. XLOANS is a Melbourne-based mortgage broking service.
Check the right option for your situation
Book a free 15-minute chat with an XLOANS broker. Eligibility and lender approval still apply.