Help to Buy Scheme 2026: What St George First Home Buyers Need to Know

Picture this: you're saving for a deposit on a unit in Rockdale, watching prices tick up quarter after quarter while your savings struggle to keep pace. Sound familiar? You're not alone—I hear this story weekly from young professionals and couples across St George.

But here's something that's changing the game: the federal Help to Buy scheme that launched in December 2025 might just be the circuit breaker you've been waiting for.

After helping hundreds of first home buyers find their place in suburbs like Banksia, Kogarah, and Arncliffe over 25+ years, I'm genuinely excited about what this means for the next generation trying to crack the St George market.

The Help to Buy Scheme Explained (Plain English Version)

Forget the bureaucratic jargon. Here's how it actually works:

The government becomes your silent partner. They contribute up to 40% of a new home's purchase price (or 30% for existing homes) as an equity share. You're not paying rent on their portion. There's no interest charged. They simply own a slice of the property alongside you.

The Numbers That Matter

For a $700,000 unit in Banksia, you'd need roughly $14,000 deposit instead of the traditional $140,000 for a 20% deposit. That's a decade of savings compressed into perhaps 12-18 months for many buyers.

What Does This Mean for St George Suburbs?

Suburbs Now Within Reach

I've mapped out what this scheme opens up for first home buyers in our region:

Banksia (Entry Point: ~$620,000 median unit)

• 2% deposit = ~$12,400
• Government contribution (30%) = ~$186,000
• Your mortgage = ~$421,600
• Previously needed $124,000 deposit—now just $12,400

Rockdale (Entry Point: ~$680,000 median unit)

• 2% deposit = ~$13,600
• Government contribution (30%) = ~$204,000
• Your mortgage = ~$462,400
• Walking distance to station, cafes, and Brighton beach

Kogarah (Entry Point: ~$720,000 median unit)

• 2% deposit = ~$14,400
• Government contribution (30%) = ~$216,000
• Your mortgage = ~$489,600
• Near St George Hospital precinct—ideal for healthcare workers

📊 Check Your Borrowing Power

Wondering what you can actually afford with Help to Buy? Use my free calculator to see your numbers.

Calculate Borrowing Capacity →

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The Catch (Yes, There's Always a Catch)

Let me be upfront about the limitations:

1. You're Sharing the Upside When you sell, the government gets their percentage back—including any capital gains. Bought at $700,000 with 30% government equity, sold at $850,000? They get 30% of that $850,000 ($255,000), not just their original $210,000.

2. Income Caps Are Tight $100,000 single or $160,000 joint is realistic for many first-timers, but if you're a couple both earning $85,000, you're over the threshold. Promotions could push you out of eligibility mid-application.

3. Limited Lender Participation Currently Commonwealth Bank and Bank Australia are participating. More lenders expected to join, but your broker options are limited right now.

4. Only 10,000 Places Per Year Nationally. Expect competition for spots, especially in Sydney's more affordable corridors like St George.

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How to Combine Help to Buy with Other Schemes

Here's where it gets interesting. You can potentially stack benefits:

First Home Buyers Assistance Scheme (NSW)

• Under $800,000: Full stamp duty exemption
• $800,000-$1,000,000: Reduced stamp duty

A $700,000 Banksia unit? Zero stamp duty. That's roughly $27,000 you keep in your pocket.

First Home Super Saver (FHSS) Scheme

• Contribute up to $50,000 into super at concessional tax rates
• Withdraw for your deposit with tax advantages
• Can use this to meet your 2% deposit requirement

Combined strategy: Use FHSS to save your 2% deposit tax-efficiently, apply for Help to Buy, claim the stamp duty exemption, and you're into a $700,000 property with perhaps $15,000-$20,000 total outlay instead of $160,000+.

🧮 Calculate Your Stamp Duty Savings

See exactly how much you'll save (or if you qualify for exemption) based on your purchase price.

Calculate Stamp Duty →

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St George Suburbs: My Honest Assessment for Help to Buy Buyers

Based on current prices and the scheme's parameters, here's my frank advice:

Best Fit: Banksia, Arncliffe, Bexley

• Lower median prices keep you comfortably under caps
• Strong transport links (train stations on T4/T8 lines)
• Genuine community feel without premium pricing
• Units and townhouses readily available under $800,000

Solid Options: Rockdale, Kogarah, Kingsgrove

• May need to target units rather than houses
• Excellent amenities and future growth potential
• Some properties stretch toward scheme limits

Challenging: Brighton-Le-Sands, Sans Souci

• Premium waterfront pricing often exceeds caps
• May find suitable units, but limited stock
• Consider these as "next home" targets after building equity

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The Application Process: What to Expect

Step 1: Check Eligibility

• Confirm income is under thresholds
• Verify you haven't owned property in Australia before
• Ensure you're an Australian citizen (permanent residents aren't eligible for Help to Buy—they can access other schemes)

Step 2: Get Finance Pre-Approval

• Apply through a participating lender (CBA, Bank Australia currently)
• Your broker can guide this process
• Pre-approval typically takes 1-2 weeks

Step 3: Find Your Property

• Work with an agent who understands the scheme requirements
• Properties must meet price caps for your region
• Both new and existing homes qualify (different equity percentages)

Step 4: Make Your Application

• Lodge through Housing Australia portal
• Processing times vary—allow several weeks
• Secure your property via conditional contract while waiting

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Real Talk: Is Help to Buy Right for You?

After two decades watching first home buyers navigate these decisions, here's my honest assessment:

Help to Buy makes sense if:

• You're confident in long-term property ownership (5+ years)
• You want to stop paying rent and start building equity
• Your income is unlikely to significantly exceed the caps soon
• You're comfortable sharing future capital gains

Consider alternatives if:

• You expect significant income growth
• You're planning to upgrade quickly
• You have access to family guarantor support
• You can save a 10-20% deposit within 2-3 years

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My Advice to St George First Home Buyers

The best time to buy was ten years ago. The second best time? When you're financially ready and a scheme like this bridges the gap.

Don't let analysis paralysis keep you renting indefinitely. Yes, sharing equity means sharing gains. But it also means building wealth through property ownership instead of watching from the sidelines while paying someone else's mortgage through rent.

If you're considering Help to Buy for a St George property, let's chat. I can walk you through which suburbs and property types align with your situation—no pressure, just honest local expertise.

Ready to Explore Your First Home Options?

Book a free consultation to discuss Help to Buy eligible properties in St George.

Book Free Consultation →

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Frequently Asked Questions

Q: Can I buy out the government's share later? Yes, you can purchase additional equity in increments as your financial situation improves, eventually owning 100%.

Q: What happens if property values drop? The government shares both gains AND losses. If your property decreases in value, their share decreases proportionally too.

Q: Can I renovate a Help to Buy property? Yes, cosmetic renovations are fine. Major structural changes may require approval depending on your agreement terms.

Q: How long can I stay in the scheme? There's no time limit. You can remain in the arrangement indefinitely, though most buyers eventually purchase the government's share or sell.

Q: Does Help to Buy affect my borrowing capacity? Actually, it improves it—you're borrowing less because the government contribution reduces your required loan amount.

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Michael Kalinovski has helped 500+ families buy and sell across St George over 25 years. For personalised advice on Help to Buy and first home purchasing, call 0411 LAU 888 or visit michaelkalinovski.com/contact.