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Help to Buy: the government owns 30% of my house. What happens when I go to sell it?
Bayley Clarke · Mortgage broker on the road · Last checked 16 October 2026 · 3 min read
The short answer
The government is a shareholder in your home. When you sell, they take their percentage of what the property is worth at that point, not the dollar amount they put in. If it's doubled in value, their share has doubled too.
The same rule applies if you try to pay them out early and own the whole thing yourself. It's all based on what the property is worth in the future. Help to Buy is an option, but generally not for everyone.
The 60 second version, filmed from the driver's seat. The rest of this page is the detail underneath it.
They own a share, not a loan
Help to Buy isn't a second loan you pay back. The government puts in up to 30% of the price on an existing home, or up to 40% on a new one, and in return they own that share of the property. You buy the rest with as little as a 2% deposit and a smaller home loan.
That's the appeal: a smaller loan means smaller repayments, and you're in the door years sooner. But because they're a part owner, they're invested in you and they're invested in your house. They took a chance on you with a small deposit, and when the house makes money, they want their share of the winnings.
What that looks like with real numbers
Say you buy at $500k and the government takes 30%. They've put in $150k. Years later the place is worth a million. When you sell, their 30% is now $300k, not the $150k they contributed. So for you that means the growth on their slice goes to them, and you keep 70% of the sale price, less whatever is left on your loan.
It works the other way too. The government's share is based on the value at the time, so if the property goes backwards, their share goes backwards with it. They share the gain and they share the loss. That's fairer than it sounds, but most people buy expecting the gain, so that's the number to plan around.
Paying them out early works the same way
A lot of people go in planning to buy the government out down the track, either in chunks or all at once, once their income goes up. You can, but the price is set by what the property is worth when you do it, not by what they put in originally.
So if you're planning to buy back their 30% in ten years, you're buying 30% of a ten-years-older valuation. The longer you wait in a rising market, the more it costs. If buying them out is part of your plan, it generally pays to do it sooner rather than later, and to budget for it as a real number from day one.
The honest bit: it's a good door, with a real cost
Help to Buy gets people into a home who otherwise couldn't, and I'm not going to talk anyone out of that. But you're giving away a slice of the growth, you have to live in the place, and you can't rent it out while the government holds its share.
If you're likely to qualify for the 5% scheme or have family who can go guarantor, compare those first. Neither one hands over part of your future gain. Do your research, or talk to me about it and we'll put the options side by side.
Want Help to Buy put side by side with your other options?
A 30 minute call. We look at your income against the caps, run Help to Buy next to the 5% scheme and a guarantor, and you see what each one costs you now and when you sell.
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Next question
Can I use my own bank for Help to Buy?Almost always no. As of October 2026, essentially one lender on the broker panel does Help to Buy.
Related answers
The full guide: The First Home Guarantee, explained If I buy an investment property first, do I lose my first home buyer benefits? What happens if prices fall after I buy with a 5% deposit? My partner owned a house before. Am I still eligible for first home buyer benefits?Not your question? Book a call and ask it, or call 0437 189 939.