Help to Buy: Labor promises to ‘open the door of home ownership’ – but does the contentious scheme stack up?

Anthony Albanese’s government says Help to Buy will assist people earning a modest income to buy a home. But opinions are mixed on whether a shared equity scheme is the best way forward. Photograph: Mike Bowers/The Guardian

Another key housing fight looms for the Albanese government. This time, it’s the Help to Buy scheme – a policy the prime minister has declared would “open the door of home ownership to tens of thousands of Australians”.

In a nutshell, the proposal is known as a shared equity scheme and it aims to help eligible applicants get into the housing market by loaning them 30% (for an existing build) or 40% (new build) of the purchase price. This reduces the bank loan to 60% or 70%, so those eligible will require smaller deposits and loans.