Buying a house with a government share: SA shared equity in 2026
There's a route into the market that doesn't need a 20% deposit and doesn't mean paying mortgage insurance. Under a shared equity scheme the government co-owns part of your home. Here's how the two South Australian options work in 2026, what they cost you later, and who they actually suit.
For a lot of Adelaide buyers the deposit is the wall. You can comfortably make the repayments, but saving 20% of a $600,000 house while paying rent feels impossible. Shared equity is the government's answer to that wall: it puts in a slice of the purchase price and owns that slice, so you buy with a much smaller deposit and a smaller loan. As of 2026 there are two schemes a South Australian can use, one federal and one state. This guide walks through both.
What does "shared equity" actually mean?
In a normal purchase you own 100% of the home. Whatever your deposit doesn't cover, you borrow. In a shared-equity purchase, a government body contributes part of the price, often 25% or 30%, and owns that same share. You take out a mortgage on the rest.
The effect is real and immediate: a smaller loan means a smaller deposit, lower monthly repayments, and frequently no Lenders Mortgage Insurance. The thing to understand up front is that you are not getting a gift. The government is a part-owner, and it shares in whatever the property does next. We unpack that "catch" further down. For a one-page definition, see the shared equity glossary entry.
The new one: federal Help to Buy
This is the scheme most people mean when they say "the new rule". Help to Buy is run by the Australian Government through Housing Australia. It launched in December 2025 and applications are now open. The headline numbers:
- Government share: up to 40% of the price for a new home, up to 30% for an existing home.
- Deposit: as low as 2%, with no Lenders Mortgage Insurance.
- Income caps: $100,000 for an individual, $160,000 for joint applicants or a single parent.
- Adelaide price cap: around $700,000 (regional SA is lower).
- Places: capped at 40,000 nationally over four years, roughly 10,000 a year.
That last point matters. Help to Buy is not an open entitlement like a tax concession. The number of places is limited, so qualifying does not guarantee a spot. Early take-up has been brisk, so if it suits you, it pays to move rather than wait. Help to Buy is also not restricted to first home buyers, though you generally can't already own a property.
The state one: HomeStart Shared Equity Option
South Australia has had its own shared-equity offer for longer, through HomeStart Finance, the state-owned lender. The structure is slightly different. Instead of a co-ownership stake from a federal body, HomeStart lends you between 5% and 25% of the price as an interest-free, repayment-free amount that reduces your main loan, capped at $200,000.
- Price cap: $750,000, available in metro Adelaide and some regional centres.
- Income test: net household income up to $110,000.
- Owner-occupier only: you must live in the home and not own another property.
- HomeStart shares in any gain or loss in the property's value, the same principle as Help to Buy.
Because HomeStart is also your main lender, the shared-equity amount is bundled into your overall HomeStart loan assessment rather than handled by a separate federal application.
Help to Buy vs HomeStart: side by side
| Help to Buy (federal) | HomeStart (SA) | |
|---|---|---|
| Run by | Housing Australia | HomeStart Finance |
| Government share | Up to 40% new / 30% existing | 5% to 25%, max $200,000 |
| Deposit | From 2%, no LMI | Shrinks your main loan |
| Adelaide price cap | ~$700,000 | $750,000 |
| Income cap | $100k single / $160k joint | $110k net household |
| First home buyers only? | No, but no other property | No other property |
| Places limited? | Yes, 40,000 over 4 years | Subject to lending criteria |
You apply to one scheme, not both at once. Which fits depends on your income, whether you're buying new or established, and whether a 2% deposit with a federal application or a single HomeStart loan suits your situation better.
What's the catch with shared equity?
This is the part that doesn't fit on a poster. The government's share is a percentage, not a fixed dollar amount, and it moves with the value of your home.
Say the government owns 30% of a home you buy for $600,000. Their dollar stake at purchase is $180,000. If you sell five years later for $750,000, they don't get their $180,000 back, they get 30% of $750,000, which is $225,000. You gave up 30% of the capital growth, $45,000 in this example, in exchange for getting in years earlier with a smaller deposit.
The honest summary: shared equity lowers the cost of getting in, not the cost of owning outright. For someone otherwise locked out of the market, that trade is often worth it. For someone close to affording a place on their own, handing over a slice of future growth can cost more than the LMI they'd have paid.
The flip side is real too: if values fall, the government wears its share of the loss alongside you. And with both schemes you can usually buy back the government's share over time in steps, which is how you work toward owning 100%.
How does it stack with the First Home Owner Grant?
Shared equity is separate from the SA First Home Owner Grant (FHOG) and the stamp duty concession. If you're a first home buyer purchasing an eligible new home, you may be able to use a shared-equity scheme and claim the $15,000 grant and the stamp duty concession, which together can be worth tens of thousands. The rules interact, though, so confirm the combination with your lender or broker. Our SA first home buyer guide lays out every concession and how they fit together.
Should you use it? Run the numbers first
Before you decide, get two figures clear. First, what you can actually borrow, which depends on your income, debts, and the APRA buffer, covered in our borrowing power guide and the Borrowing Power tool. Second, the true all-in cost of the specific property, including stamp duty and fees, which the True Cost Calculator breaks down line by line. Compare a normal purchase against a shared-equity one with those numbers in front of you, not the brochure.
You apply directly through the scheme. For Help to Buy, start at firsthomebuyers.gov.au and Housing Australia. For the SA option, see HomeStart Finance or the SA Government's HomeSeeker SA.
The bottom line
Shared equity is a genuine path into the market for buyers with steady income but a thin deposit, and Help to Buy makes it national for the first time. It is not free money: you trade a share of future capital growth for getting in sooner and cheaper. Know the price caps, know the income tests, and run your real numbers before you commit. If the maths works, it can be the difference between buying this year and buying in five.
Frequently asked questions
Can I buy a house with the government in Australia?
Yes. Under a shared equity scheme the government contributes part of the purchase price and co-owns that share. In 2026 SA buyers have two options: the federal Help to Buy scheme (up to 40% of a new home, 30% of an existing one) and the SA HomeStart Shared Equity Option (5% to 25%, capped at $200,000). You buy with a smaller deposit and the government takes its share back when you sell or buy them out.
What is the Help to Buy scheme and when did it start?
Help to Buy is the federal shared equity scheme that launched in December 2025, with applications now open through Housing Australia. The government takes a share of up to 40% on a new home or 30% on an existing home, you can buy with a 2% deposit, and there's no LMI. Income caps are $100,000 single and $160,000 joint or single parent. Places are capped at 40,000 nationally over four years.
What is the income limit for shared equity in South Australia?
For Help to Buy, $100,000 for an individual and $160,000 for joint applicants or a single parent. For the SA HomeStart Shared Equity Option, a net household income of up to $110,000. Both figures are indicative for 2026, confirm current thresholds on the official scheme pages before applying.
What is the catch with shared equity?
The government's share is a percentage, not a fixed dollar figure, so it grows with your home's value. If they own 30% and the home rises, they receive 30% of the higher sale price, including the capital gain. You also have to meet price caps and income tests, and federal places are limited. It lowers the cost of getting in, not of owning the home outright.
Can I use shared equity with the First Home Owner Grant?
Often yes, depending on the scheme and whether you're buying new. The SA $15,000 FHOG applies to eligible new homes, and shared-equity buyers who meet those rules may still claim it. Help to Buy isn't limited to first home buyers, but you generally can't already own a property. Confirm how the schemes stack with your lender or broker before committing.
What would this property really cost you?
Run stamp duty, fees, and the first home buyer concession on any purchase price, so you can compare a normal purchase against a shared-equity one.
Open the True Cost Calculator →