Help to Buy is the federal government's shared equity scheme for first home buyers. It is one of the most significant structural supports available to Melbourne buyers right now — but it comes with a $950,000 price cap, and not every Melbourne suburb sits within that number.
This article explains what the scheme does, who qualifies, and which Melbourne corridors contain the largest number of eligible established properties.
What Help to Buy actually is
Help to Buy is a shared equity scheme, not a grant or a loan guarantee. The government takes an equity stake in your property:
- 40% for new builds
- 30% for established dwellings
You pay no rent on the government's share. You do not need to pay it back on any schedule. The government's stake is redeemed when you sell the property, or earlier if you choose to buy back the government's portion in increments of at least 5% at a time.
The scheme runs at 10,000 places per year nationally. Applications are managed through Housing Australia.
Because the government takes an equity share, your required loan is smaller. A $900,000 property with a 30% government contribution means your required borrowing is $630,000 (before your deposit). That meaningfully reduces your serviceability requirement.
Who is eligible
Income thresholds are the primary eligibility gate:
- Single applicants: taxable income must be $90,000 or less
- Joint applicants or couples: combined taxable income must be $120,000 or less
Additional criteria:
- Australian citizen aged 18 or over
- This must be your first home — you cannot have previously held a freehold interest in Australian residential property
- You must intend to live in the property as your principal place of residence
- You must have a 2% minimum deposit (not gifted — must be genuine savings or First Home Super Saver Scheme withdrawal)
- You must qualify for a home loan with a participating lender
The deposit and serviceability requirements mean that even with the scheme, buyers need a demonstrated savings history and a sufficient income to service the reduced mortgage.
The $950,000 Melbourne price cap
The property price cap in Melbourne is $950,000. This applies to the total purchase price — not the portion you are buying. A $1.2M property is not eligible even if you would only be borrowing $840,000.
The cap has been set at $950,000 since the scheme was legislated. There has been discussion about a potential increase but as of May 2026 no increase has been confirmed or announced.
Within that $950K cap, the scheme is most useful where median prices sit in the $600,000–$900,000 range. Properties near or at the cap provide the smallest benefit because the loan reduction is proportionally smaller relative to property costs.
Melbourne corridors within the cap
Based on Victorian Government land data and ABS median price estimates, established housing stock under $950K is concentrated in:
Western corridor (most eligible stock) Werribee, Hoppers Crossing, Wyndham Vale, Williams Landing, Laverton, Altona Meadows. This corridor has the highest concentration of Help to Buy eligible established homes in metropolitan Melbourne. Median three-bedroom house prices range from $560,000 to $820,000 depending on the specific suburb.
Northern corridor Craigieburn, Roxburgh Park, Thomastown, Lalor, Broadmeadows, Coolaroo, Dallas. Price range varies significantly — Thomastown and Lalor sit in the $700,000–$850,000 range; Broadmeadows and further north are more affordable.
South-eastern corridor Dandenong, Springvale, Noble Park, Hallam, Narre Warren, Cranbourne. A mix of price points; inner suburbs like Springvale and Noble Park sit in the $750,000–$900,000 range, outer suburbs significantly below.
Outer eastern corridor Lilydale, Mooroolbark, Croydon, Ringwood East. Less commonly associated with first home buyers but contains meaningful established stock under $950K, particularly detached homes on larger blocks.
Growth area fringe Melton, Melton South, Melton West, Bacchus Marsh, Sunbury. Significant new build activity makes these corridors relevant for the 40% government contribution on new dwellings. Established prices are well under the cap.
How to think about choosing within the cap
The scheme provides the same structure regardless of which eligible property you buy. The question is which suburb offers the best outcome for your family's actual life — not just the one with the most room under the $950K cap.
Factors that matter more than the price gap to the cap:
- School catchment quality: catchments vary significantly across all the corridors listed above. A $750,000 home in one suburb may offer a substantially better primary school catchment than a $650,000 home nearby.
- Commute time: the western and northern corridors have different rail and freeway access. How long the commute takes on a typical weekday is a better measure than distance alone.
- Infrastructure trajectory: some of these suburbs have confirmed investment in parks, community facilities, and transport links. Others are more speculative. The Victorian Government's activity centre planning reforms under GC252 affect a number of middle-ring suburbs specifically.
- Community character and density: outer growth area suburbs and inner middle-ring suburbs have different built environments and different trajectories under current planning settings.
BurbSense earns nothing from your purchase — we charge subscribers only. This article is editorial content based on publicly available Housing Australia scheme documentation and Victorian Government data. It is not financial advice. Income and price thresholds are correct as at May 2026 — always verify current figures with Housing Australia before applying.
Contains public sector data from the State of Victoria, licensed under CC BY 4.0.