Help to Buy income cap is not loan approval

From 1 July 2026, the Help to Buy income threshold is $103,000 for a single applicant and $165,000 for a single-parent or joint application. The Scheme uses the FY2026 Notice of Assessment for this income check.

Being at or below the threshold clears one Scheme rule. It does not confirm a reserved place, borrowing capacity or home-loan approval. A Participating Lender still assesses the applicant's financial position and completes its required checks before submitting a conditional-approval application to Housing Australia.

The income cap and the loan assessment are separate

Help to Buy eligibility asks whether the applicant meets the Scheme rules. Income, citizenship, deposit, property ownership, owner-occupier requirements, the location price cap and other assistance rules can all matter.

The lender assessment asks whether the proposed loan is supportable. The lender reviews the financial position, its credit criteria and the selected property before deciding whether the application can proceed.

Official example: an $800,000 existing home

The Australian Government's example uses a $16,000 deposit, a $544,000 lender loan and a $240,000 Government contribution. Together, those amounts fund an $800,000 existing home. The Government contribution equals a 30% equity share in that example.

This is a Scheme-structure example—not a promise that an individual can borrow $544,000, obtain a place or buy an $800,000 property. The available Government share can be up to 30% for an existing home or 40% for a newly built home, subject to the Scheme rules and approvals.

Two checks, not one

1. Scheme income test — confirm the FY2026 taxable income on the Notice of Assessment against the current applicant threshold.

2. Lender assessment — obtain an assessment of the applicant's financial position and the proposed loan; do not treat the Scheme cap as a loan limit.

3. Shared-equity structure — understand the Government's proportional share of future gains or losses and the pathways for buying back that equity or selling.

4. Property and place — check the location price cap, eligible property rules, minimum 2% deposit and whether a Scheme place has actually been reserved.

Terms to use correctly

Taxable Income — the income figure used for the Scheme threshold, shown on the relevant ATO Notice of Assessment.

Notice of Assessment (NOA) — the ATO assessment document; the 2026–27 threshold page specifies FY2026 for the current income check.

Shared Equity — the Government contributes toward the purchase and proportionally shares gains or losses in the property value.

Borrowing Capacity — the amount a lender may assess as supportable under the applicant's circumstances and the lender's criteria.

Bottom line

Before making an offer, confirm Help to Buy eligibility and lender borrowing capacity separately. Passing the income threshold is useful, but it is only one gate in a process that also requires a lender assessment, an eligible property and Scheme approval.

Sources

Australian Government First Home Buyers — Help to Buy income and threshold updates 2026–27

Australian Government First Home Buyers — Australian Government Help to Buy Scheme

General information only. This is not financial advice. Loan options and eligibility depend on your personal income, liabilities, assets and lender assessment criteria.